83 FR 13176 - Self-Regulatory Organizations; The Options Clearing Corporation; Order Instituting Proceedings To Determine Whether To Approve or Disapprove the Proposed Rule Concerning Updates to and Formalization of OCC's Recovery and Orderly Wind-Down Plan

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 59 (March 27, 2018)

Page Range		13176-13178
FR Document		2018-06106
Federal Register, Volume 83 Issue 59 (Tuesday, March 27, 2018)
[Federal Register Volume 83, Number 59 (Tuesday, March 27, 2018)]
[Notices]
[Pages 13176-13178]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06106]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82927; File No. SR-OCC-2017-021]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Order Instituting Proceedings To Determine Whether To Approve or 
Disapprove the Proposed Rule Concerning Updates to and Formalization of 
OCC's Recovery and Orderly Wind-Down Plan

March 22, 2018.

I. Introduction

    On December 8, 2017, The Options Clearing Corporation (``OCC'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change SR-OCC-2017-021 (``Proposed Rule Change''), 
pursuant to Section 19(b) of the Securities Exchange Act of 1934

[[Page 13177]]

(``Act''),\1\ and Rule 19b-4 thereunder.\2\ The Proposed Rule Change 
was published for comment in the Federal Register on December 26, 
2017.\3\ On January 25, 2018, the Comission designated a longer period 
within which to approve the Proposed Rule Change, disapprove the 
Proposed Rule Change, or institute proceedings to determine whether to 
approve or disapprove the Proposed Rule Change.\4\ The Commission is 
publishing this order pursuant to Section 19(b)(2)(B) of the Act \5\ to 
institute proceedings to determine whether to approve or disapprove the 
Proposed Rule Change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 82352 (Dec. 19, 2017), 
82 FR 61072 (Dec. 26, 2017) (SR-OCC-2017-021) (``Notice''). On 
December 8, 2017, OCC also filed a related advance notice (SR-OCC-
2017-810) with the Commission pursuant to Section 806(e)(1) of Title 
VIII of the Dodd-Frank Wall Street Reform and Consumer Protection 
Act, entitled the Payment, Clearing, and Settlement Supervision Act 
of 2010 and Rule 19b-4(n)(1)(i) under the Act (``Advance Notice''). 
12 U.S.C. 5465(e)(1) and 17 CFR 240.19b-4(n)(1)(i), respectively. 
The Advance Notice was published in the Federal Register on January 
23, 2018. Securities Exchange Act Release No. 82513 (Jan. 17, 2018), 
83 FR 3224 (Jan. 23, 2018) (SR-OCC-2017-810).
    The Financial Stability Oversight Council designated OCC a 
systemically important financial market utility on July 18, 2012. 
See Financial Stability Oversight Council 2012 Annual Report, 
Appendix A, available at http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf. Therefore, OCC is required to 
comply with the Payment, Clearing and Settlement Supervision Act and 
file advance notices with the Commission. See 12 U.S.C. 5465(e).
    \4\ Securities Exchange Act Release No. 82586 (Jan. 25, 2018), 
83 FR 4527 (Jan. 31, 2018) (File No. SR-OCC-2017-021).
    \5\ 15 U.S.C. 78s(b)(2)(B).
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    Institution of proceedings does not indicate that the Commission 
has reached any conclusions with respect to the Proposed Rule Change, 
nor does it mean that the Commission will ultimately disapprove the 
Proposed Rule Change. Rather, as discussed below, the Commission seeks 
additional input on the Proposed Rule Change and issues presented by 
the proposal.

II. Description of the Proposed Rule Change ^\6\
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    \6\ The description of the Proposed Rule Change is substantially 
excerpted from the Notice. See Notice, supra note 3, 82 FR at 61073-
80.
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    The Proposed Rule Change would formalize and update OCC's Recovery 
and Wind-Down (``RWD'') Plan. In its proposal,\7\ OCC stated that the 
purpose of the proposed RWD Plan is to (i) demonstrate that OCC has 
considered the scenarios which may potentially prevent it from being 
able to provide its ``Critical Services'' (defined below) as a going-
concern,\8\ (ii) provide appropriate plans for OCC's recovery or 
orderly wind-down based on the results of such consideration; \9\ and 
(iii) impart to relevant authorities the information reasonably 
anticipated to be necessary for purposes of recovery and orderly wind-
down planning.\10\
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    \7\ See id. at 61073.
    \8\ As defined by Rule 17Ad-22(e)(3)(ii), those scenarios are: 
``credit losses, liquidity shortfalls, losses from general business 
risks and other losses.'' 17 CFR 240.17Ad-22(e)(3)(ii).
    \9\ See Standards for Covered Clearing Agencies, 81 FR 70786, 
70810 (Oct. 13, 2016).
    \10\ Id.
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    The proposed RWD Plan consists of eight chapters.\11\ Chapter 1 of 
the RWD Plan would provide an executive summary and overview of the 
proposed Plan.\12\ Chapter 2 of the proposed RWD Plan is designed to 
impart information that OCC believes would be essential to relevant 
authorities for purposes of recovery and orderly wind-down planning, as 
well as to provide readers of the RWD Plan with necessary context for 
the subsequent discussion and analysis of OCC's ``Critical Services'' 
and ``Critical Support Functions'' in Chapter 4 (discussed below) and 
of OCC's resolution process in Chapter 6 (discussed below).\13\ In 
Chapter 3 of the proposed RWD Plan, OCC would identify each of its 
fourteen different internal support functions and provide a brief 
description of the activities performed by each such support 
function.\14\ The primary purpose of Chapter 4 of the proposed RWD Plan 
would be to identify OCC's ``Critical Services'' and ``Critical Support 
Functions.'' \15\
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    \11\ Notice, supra note 3, 82 FR at 61073.
    \12\ Id.
    \13\ Id. at 61074.
    \14\ Id.
    \15\ Id. The RWD Plan would define a ``Critical Service'' as a 
service provided by OCC that, if interrupted, would likely have a 
material negative impact on participants or significant third 
parties, give rise to contagion, or undermine the general confidence 
of markets the FMU serves. Id.
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    Chapter 5 of OCC's proposed RWD Plan would constitute OCC's 
Recovery Plan.\16\ the purpose of Chapter 5 would be to demonstrate 
that OCC has considered scenarios which may potentially prevent it from 
being able to provide its Critical Services as a going-concern and 
that, based on the scenarios considered, OCC has prepared appropriate 
plans for its recovery.\17\ Chapter 6 of OCC's proposed RWD Plan would 
constitute OCC's Wind-Down Plan (``WDP'').\18\ Chapter 6 would 
demonstrate that OCC has considered scenarios which may potentially 
prevent it from being able to provide its Critical Services as a going-
concern and that OCC has adequately evaluated plans for its orderly 
wind-down.\19\ Chapter 7 of OCC's proposed Plan would memorialize the 
prior governance for approval of the earlier drafts of OCC's recovery 
and orderly wind-down plan and would establish an internal governance 
process for the maintenance, review and approval of the proposed RWD 
Plan.\20\
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    \16\ Id. at 61075.
    \17\ Id. For the purposes of the RWD Plan, OCC would define 
``recovery'' consistent with the definition advanced by the 
Committee on Payments and Market Infrastructures and the 
International Organization of Securities Commissions, which is ``the 
actions of [a Financial Market Utility (``FMI'')], consistent with 
its rules, procedures, and other ex-ante contractual arrangements, 
to address any uncovered credit loss, liquidity shortfall, capital 
inadequacy, or business, operational or other structural weakness, 
including the replenishment of any depleted pre-funded financial 
resources and liquidity arrangements, as necessary to maintain the 
FMI's viability as a going concern.'' Id., note 30 (citation 
omitted).
    \18\ Id. at 61080.
    \19\ Id. For the purposes of the RWD Plan, OCC would frame its 
wind-down objective consistent with the objective advanced by the 
Financial Stability Board for CCP resolution: ``CCP resolution 
should have as its objective the pursuit of financial stability and 
ensure the continuity of critical CCP functions in all jurisdictions 
where those functions are critical and without exposing taxpayers to 
risk of loss. . . .The objectives of CCP resolution can be achieved 
either by: (i) Restoring the ability of the CCP to continue to 
perform its critical functions as a going concern; or (ii) ensuring 
continued performance of those functions by another entity or 
arrangement (including a bridge entity established by the resolution 
authority) coupled with the orderly wind-down of the residual CCP in 
resolution.'' Id., note 54 (citation omitted).
    \20\ Id. at 61080.
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III. Proceedings To Determine Whether To Approve or Disapprove File No. 
SR-OCC-2017-021 and Grounds for Disapproval Under Consideration

    The Commission is instituting proceedings pursuant to Section 
19(b)(2)(B) of the Act to determine whether the Proposed Rule Change 
should be approved or disapproved.\21\ Institution of proceedings is 
appropriate at this time in view of the legal and policy issues raised 
by the Proposed Rule Change. As noted above, institution of proceedings 
does not indicate that the Commission has reached any conclusions with 
respect to any of the issues involved. Rather, the Commission seeks and 
encourages interested persons to provide additional comment on the 
Proposed Rule Change and provide arguments to support the Commission's 
analysis as to whether to approve or disapprove the Proposed Rule 
Change.
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    \21\ 15 U.S.C. 78s(b)(2)(B).
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    Pursuant to Section 19(b)(2)(B) of the Act,\22\ the Commission is 
providing notice of the grounds for disapproval under consideration. 
The Commission is

[[Page 13178]]

instituting proceedings to allow for additional analysis, and input 
from, commenters with respect to the Proposed Rule Change's consistency 
with the Act and the rules thereunder, including the following:
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    \22\ Id.
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     Section 17A(b)(3)(F) of the Act,\23\ which requires, in 
part, that the rules of a clearing agency be designed to promote the 
prompt and accurate clearnance and settlement of securities 
transactions, assure the safeguarding of securities and funds which are 
in the custody or control of the clearing agency or for which it is 
responsible, and, in general, to protect investors and the public 
interest; and
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    \23\ 15 U.S.C. 78q-1(b)(3)(F).
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     Rule 17Ad-22(e)(3)(ii) of the Act,\24\ which requires a 
covered clearing agency to establish, implement, maintain and enforce 
written policies and procedures reasonably designed to plan for the 
recovery and orderly wind-down of the covered clearing agency 
necessitated by credit losses, liquidity shortfalls, losses from 
general business risk, or any other losses.
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    \24\ 17 CFR 17Ad-22(e)(3)(ii).
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IV. Request for Written Comments

    The Commission requests that interested persons provide written 
submissions of their views, data, and arguments with respect to the 
Proposed Rule Change with respect to the issues identified above, as 
well as any other concerns they may have with the Proposed Rule Change. 
In particular, the Commission invites the written views of interested 
persons concerning whether the Proposed Rule Change is consistent with 
Section 17A(b)(3)(F) and Rule 17Ad-22(e)(3)(ii) under the Act, cited 
above, or any other provision of the Act, rules, and regulations 
thereunder.
    Although there do not appear to be any issues relevant to approval 
or disapproval that would be facilitated by an oral presentation of 
views, data, and arguments, the Commission will consider, pursuant to 
Rule 19b-4, any request for an opportunity to make an oral 
presentation.\25\
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    \25\ Section 19(b)(2) of the Act, as amended by the Securities 
Acts Amendments of 1975, Public Law 94-29, 89 Stat. 97 (1975), 
grants the Commission flexibility to determine what type of 
proceeding--either oral or notice and opportunity for written 
comments--is appropriate for consideration of a particular proposal 
by a self-regulatory organization. See Securities Acts Amendments of 
1975, Report of the Senate Committee on Banking, Housing and Urban 
Affairs to Accompany S. 249, S. Rep. No. 75, 94th Cong., 1st Sess. 
30 (1975).
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    Interested persons are invited to submit written data, views, and 
arguments regarding whether the Proposed Rule Change should be approved 
or disapproved by April 17, 2018. Any person who wishes to file a 
rebuttal to any other person's submission must file that rebuttal by 
May 1, 2018.
    Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File No. SR-OCC-2017-020 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-OCC-2017-020. 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 No. SR-OCC-2017-021 and should 
be submitted on or before April 17, 2018. If comments are received, any 
rebuttal comments should be submitted on or before May 1, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-06106 Filed 3-26-18; 8:45 am]
 BILLING CODE 8011-01-P
13176 Federal Register / Vol. 83, No. 59 / Tuesday, March 27, 2018 / Notices

higher tiers of Market Maker Plus. More fees to remain competitive. Because only one method. The Commission will
specifically, this change is designed to competitors are free to modify their own post all comments on the Commission’s
permit Market Makers to aim for a fees in response, and because market internet website (http://www.sec.gov/
higher tier at the end of month without participants may readily adjust their rules/sro.shtml). Copies of the
potentially removing one of those order routing practices, the Exchange submission, all subsequent
trading days from the calculation if it is believes that the degree to which fee amendments, all written statements
the Market Maker’s best quoting day for changes in this market may impose any with respect to the proposed rule
the month. The Exchange believes that burden on competition is extremely change that are filed with the
this will allow Market Makers to quote limited. Commission, and all written
more aggressively at the end of the communications relating to the
month in order to qualify for a higher C. Self-Regulatory Organization’s proposed rule change between the
tier of Market Maker Plus, and thereby Statement on Comments on the Commission and any person, other than
contribute to market quality in Select Proposed Rule Change Received From those that may be withheld from the
Symbols. Furthermore, with the change Members, Participants, or Others public in accordance with the
described above, the Exchange believes No written comments were either provisions of 5 U.S.C. 552, will be
that it is reasonable and equitable now solicited or received. available for website viewing and
to remove the language about removing printing in the Commission’s Public
III. Date of Effectiveness of the
the day only when doing so will qualify Reference Room, 100 F Street NE,
Proposed Rule Change and Timing for
the Market Maker for the rebate. This Washington, DC 20549, on official
Commission Action
language is no longer needed since business days between the hours of
removing the worst day will always be The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
better for the Market Maker. Finally, the effective pursuant to Section filing also will be available for
Exchange believes that these changes 19(b)(3)(A)(ii) of the Act,15 and Rule inspection and copying at the principal
are equitable and not unfairly 19b–4(f)(2) 16 thereunder. At any time office of the Exchange. All comments
discriminatory as all Market Makers will within 60 days of the filing of the received will be posted without change.
be subject to the same qualification proposed rule change, the Commission Persons submitting comments are
criteria for Market Maker Plus. The summarily may temporarily suspend cautioned that we do not redact or edit
proposed fee changes described in this such rule change if it appears to the personal identifying information from
proposed rule change are applicable Commission that such action is: (i) comment submissions. You should
solely to Market Makers as the Market Necessary or appropriate in the public submit only information that you wish
Maker Plus program, which is designed interest; (ii) for the protection of to make available publicly. All
to encourage Market Makers to maintain investors; or (iii) otherwise in submissions should refer to File
quality markets, applies only to these furtherance of the purposes of the Act. Number SR–ISE–2018–20 and should be
members. The Exchange continues to If the Commission takes such action, the submitted on or before April 17, 2018.
believe that it is not unfairly Commission shall institute proceedings For the Commission, by the Division of
discriminatory to offer rebates under to determine whether the proposed rule Trading and Markets, pursuant to delegated
this program only to Market Makers should be approved or disapproved. authority.17
since Market Makers, and, in particular, Eduardo A. Aleman,
those Market Makers that achieve IV. Solicitation of Comments
Assistant Secretary.
Market Maker Plus status, are subject to Interested persons are invited to [FR Doc. 2018–06099 Filed 3–26–18; 8:45 am]
additional requirements and obligations submit written data, views, and
BILLING CODE 8011–01–P
(such as quoting requirements) that arguments concerning the foregoing,
other market participants are not. including whether the proposed rule
change is consistent with the Act. SECURITIES AND EXCHANGE
B. Self-Regulatory Organization’s
Comments may be submitted by any of COMMISSION
Statement on Burden on Competition
the following methods:
The Exchange does not believe that [Release No. 34–82927; File No. SR–OCC–
the proposed rule change will impose Electronic Comments 2017–021]
any burden on competition not • Use the Commission’s internet
necessary or appropriate in furtherance comment form (http://www.sec.gov/ Self-Regulatory Organizations; The
of the purposes of the Act. The Options Clearing Corporation; Order
rules/sro.shtml); or
proposed fee changes are pro- • Send an email to rule-comments@ Instituting Proceedings To Determine
competitive as they are designed to sec.gov. Please include File Number SR– Whether To Approve or Disapprove the
encourage Market Makers to make ISE–2018–20 on the subject line. Proposed Rule Concerning Updates to
quality markets in Select Symbols. The and Formalization of OCC’s Recovery
Exchange believes that the Market Paper Comments and Orderly Wind-Down Plan
Maker Plus program will continue to • Send paper comments in triplicate March 22, 2018.
encourage competition by incentivizing to Secretary, Securities and Exchange
Market Makers to provide liquidity and Commission, 100 F Street NE, I. Introduction
maintain tight markets in Select Washington, DC 20549–1090. On December 8, 2017, The Options
Symbols. The Exchange operates in a All submissions should refer to File Clearing Corporation (‘‘OCC’’) filed with
highly competitive market in which Number SR–ISE–2018–20. This file the Securities and Exchange
amozie on DSK30RV082PROD with NOTICES

market participants can readily favor number should be included on the Commission (‘‘Commission’’) the
competing venues if they deem fee subject line if email is used. To help the proposed rule change SR–OCC–2017–
levels at a particular venue to be Commission process and review your 021 (‘‘Proposed Rule Change’’),
excessive, or rebate opportunities comments more efficiently, please use pursuant to Section 19(b) of the
available at other venues to be more Securities Exchange Act of 1934
favorable. In such an environment, the 15 15 U.S.C. 78s(b)(3)(A)(ii).
Exchange must continually adjust its 16 17 CFR 240.19b–4(f)(2). 17 17 CFR 200.30–3(a)(12).

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Federal Register / Vol. 83, No. 59 / Tuesday, March 27, 2018 / Notices 13177

(‘‘Act’’),1 and Rule 19b–4 thereunder.2 going-concern,8 (ii) provide appropriate Chapter 6 of OCC’s proposed RWD Plan
The Proposed Rule Change was plans for OCC’s recovery or orderly would constitute OCC’s Wind-Down
published for comment in the Federal wind-down based on the results of such Plan (‘‘WDP’’).18 Chapter 6 would
Register on December 26, 2017.3 On consideration; 9 and (iii) impart to demonstrate that OCC has considered
January 25, 2018, the Comission relevant authorities the information scenarios which may potentially
designated a longer period within which reasonably anticipated to be necessary prevent it from being able to provide its
to approve the Proposed Rule Change, for purposes of recovery and orderly Critical Services as a going-concern and
disapprove the Proposed Rule Change, wind-down planning.10 that OCC has adequately evaluated
or institute proceedings to determine The proposed RWD Plan consists of plans for its orderly wind-down.19
whether to approve or disapprove the eight chapters.11 Chapter 1 of the RWD Chapter 7 of OCC’s proposed Plan
Proposed Rule Change.4 The Plan would provide an executive would memorialize the prior
Commission is publishing this order summary and overview of the proposed governance for approval of the earlier
pursuant to Section 19(b)(2)(B) of the Plan.12 Chapter 2 of the proposed RWD drafts of OCC’s recovery and orderly
Act 5 to institute proceedings to Plan is designed to impart information wind-down plan and would establish an
determine whether to approve or that OCC believes would be essential to internal governance process for the
disapprove the Proposed Rule Change. relevant authorities for purposes of maintenance, review and approval of
Institution of proceedings does not recovery and orderly wind-down the proposed RWD Plan.20
indicate that the Commission has planning, as well as to provide readers
reached any conclusions with respect to of the RWD Plan with necessary context III. Proceedings To Determine Whether
the Proposed Rule Change, nor does it for the subsequent discussion and To Approve or Disapprove File No. SR–
analysis of OCC’s ‘‘Critical Services’’ OCC–2017–021 and Grounds for
mean that the Commission will
and ‘‘Critical Support Functions’’ in Disapproval Under Consideration
ultimately disapprove the Proposed
Rule Change. Rather, as discussed Chapter 4 (discussed below) and of The Commission is instituting
below, the Commission seeks additional OCC’s resolution process in Chapter 6 proceedings pursuant to Section
input on the Proposed Rule Change and (discussed below).13 In Chapter 3 of the 19(b)(2)(B) of the Act to determine
issues presented by the proposal. proposed RWD Plan, OCC would whether the Proposed Rule Change
identify each of its fourteen different should be approved or disapproved.21
II. Description of the Proposed Rule Institution of proceedings is appropriate
internal support functions and provide
Change 6 at this time in view of the legal and
a brief description of the activities
The Proposed Rule Change would performed by each such support policy issues raised by the Proposed
formalize and update OCC’s Recovery function.14 The primary purpose of Rule Change. As noted above,
and Wind-Down (‘‘RWD’’) Plan. In its Chapter 4 of the proposed RWD Plan institution of proceedings does not
proposal,7 OCC stated that the purpose would be to identify OCC’s ‘‘Critical indicate that the Commission has
of the proposed RWD Plan is to (i) Services’’ and ‘‘Critical Support reached any conclusions with respect to
demonstrate that OCC has considered Functions.’’ 15 any of the issues involved. Rather, the
the scenarios which may potentially Chapter 5 of OCC’s proposed RWD Commission seeks and encourages
prevent it from being able to provide its Plan would constitute OCC’s Recovery interested persons to provide additional
‘‘Critical Services’’ (defined below) as a Plan.16 the purpose of Chapter 5 would comment on the Proposed Rule Change
be to demonstrate that OCC has and provide arguments to support the
1 15 U.S.C. 78s(b)(1). considered scenarios which may Commission’s analysis as to whether to
2 17 CFR 240.19b–4. potentially prevent it from being able to approve or disapprove the Proposed
3 Securities Exchange Act Release No. 82352 (Dec.
provide its Critical Services as a going- Rule Change.
19, 2017), 82 FR 61072 (Dec. 26, 2017) (SR–OCC– Pursuant to Section 19(b)(2)(B) of the
2017–021) (‘‘Notice’’). On December 8, 2017, OCC concern and that, based on the scenarios
also filed a related advance notice (SR–OCC–2017– considered, OCC has prepared Act,22 the Commission is providing
810) with the Commission pursuant to Section appropriate plans for its recovery.17 notice of the grounds for disapproval
806(e)(1) of Title VIII of the Dodd-Frank Wall Street under consideration. The Commission is
Reform and Consumer Protection Act, entitled the 8 As defined by Rule 17Ad–22(e)(3)(ii), those
Payment, Clearing, and Settlement Supervision Act
scenarios are: ‘‘credit losses, liquidity shortfalls, inadequacy, or business, operational or other
of 2010 and Rule 19b–4(n)(1)(i) under the Act structural weakness, including the replenishment of
losses from general business risks and other losses.’’
(‘‘Advance Notice’’). 12 U.S.C. 5465(e)(1) and 17 any depleted pre-funded financial resources and
17 CFR 240.17Ad–22(e)(3)(ii).
CFR 240.19b–4(n)(1)(i), respectively. The Advance 9 See Standards for Covered Clearing Agencies, 81 liquidity arrangements, as necessary to maintain the
Notice was published in the Federal Register on FMI’s viability as a going concern.’’ Id., note 30
January 23, 2018. Securities Exchange Act Release FR 70786, 70810 (Oct. 13, 2016).
10 Id. (citation omitted).
No. 82513 (Jan. 17, 2018), 83 FR 3224 (Jan. 23, 18 Id. at 61080.
11 Notice, supra note 3, 82 FR at 61073.
2018) (SR–OCC–2017–810). 19 Id. For the purposes of the RWD Plan, OCC
12 Id.
The Financial Stability Oversight Council would frame its wind-down objective consistent
designated OCC a systemically important financial 13 Id. at 61074.
with the objective advanced by the Financial
market utility on July 18, 2012. See Financial 14 Id.
Stability Board for CCP resolution: ‘‘CCP resolution
Stability Oversight Council 2012 Annual Report, 15 Id. The RWD Plan would define a ‘‘Critical
should have as its objective the pursuit of financial
Appendix A, available at http://www.treasury.gov/ Service’’ as a service provided by OCC that, if stability and ensure the continuity of critical CCP
initiatives/fsoc/Documents/2012%20 interrupted, would likely have a material negative functions in all jurisdictions where those functions
Annual%20Report.pdf. Therefore, OCC is required impact on participants or significant third parties, are critical and without exposing taxpayers to risk
to comply with the Payment, Clearing and give rise to contagion, or undermine the general of loss. . . .The objectives of CCP resolution can be
Settlement Supervision Act and file advance confidence of markets the FMU serves. Id. achieved either by: (i) Restoring the ability of the
notices with the Commission. See 12 U.S.C. 16 Id. at 61075. CCP to continue to perform its critical functions as
5465(e). 17 Id. For the purposes of the RWD Plan, OCC a going concern; or (ii) ensuring continued
amozie on DSK30RV082PROD with NOTICES

4 Securities Exchange Act Release No. 82586 (Jan.
would define ‘‘recovery’’ consistent with the performance of those functions by another entity or
25, 2018), 83 FR 4527 (Jan. 31, 2018) (File No. SR– definition advanced by the Committee on Payments arrangement (including a bridge entity established
OCC–2017–021). and Market Infrastructures and the International by the resolution authority) coupled with the
5 15 U.S.C. 78s(b)(2)(B).
Organization of Securities Commissions, which is orderly wind-down of the residual CCP in
6 The description of the Proposed Rule Change is
‘‘the actions of [a Financial Market Utility (‘‘FMI’’)], resolution.’’ Id., note 54 (citation omitted).
20 Id. at 61080.
substantially excerpted from the Notice. See Notice, consistent with its rules, procedures, and other ex-
supra note 3, 82 FR at 61073–80. ante contractual arrangements, to address any 21 15 U.S.C. 78s(b)(2)(B).
7 See id. at 61073. uncovered credit loss, liquidity shortfall, capital 22 Id.

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instituting proceedings to allow for 2018. Any person who wishes to file a For the Commission, by the Division of
additional analysis, and input from, rebuttal to any other person’s Trading and Markets, pursuant to delegated
commenters with respect to the submission must file that rebuttal by authority.26
Proposed Rule Change’s consistency May 1, 2018. Eduardo A. Aleman,
with the Act and the rules thereunder, Comments may be submitted by any Assistant Secretary.
including the following: of the following methods: [FR Doc. 2018–06106 Filed 3–26–18; 8:45 am]
• Section 17A(b)(3)(F) of the Act,23 BILLING CODE 8011–01–P
which requires, in part, that the rules of Electronic Comments
a clearing agency be designed to
promote the prompt and accurate • Use the Commission’s internet
comment form (http://www.sec.gov/ DEPARTMENT OF THE TREASURY
clearnance and settlement of securities
transactions, assure the safeguarding of rules/sro.shtml); or
Agency Information Collection
securities and funds which are in the • Send an email to rule-comments@ Activities; Submission for OMB
custody or control of the clearing agency sec.gov. Please include File No. SR– Review; Comment Request; Multiple
or for which it is responsible, and, in OCC–2017–020 on the subject line. IRS Information Collection Requests
general, to protect investors and the Paper Comments
public interest; and AGENCY: Departmental Offices, U.S.
• Rule 17Ad–22(e)(3)(ii) of the Act,24 • Send paper comments in triplicate Department of the Treasury.
which requires a covered clearing to Brent J. Fields, Secretary, Securities ACTION: Notice.
agency to establish, implement, and Exchange Commission, 100 F Street
maintain and enforce written policies SUMMARY: The Department of the
NE, Washington, DC 20549–1090.
and procedures reasonably designed to Treasury will submit the following
plan for the recovery and orderly wind- All submissions should refer to File No. information collection requests to the
down of the covered clearing agency SR–OCC–2017–020. This file number Office of Management and Budget
necessitated by credit losses, liquidity should be included on the subject line (OMB) for review and clearance in
shortfalls, losses from general business if email is used. To help the accordance with the Paperwork
risk, or any other losses. Commission process and review your Reduction Act of 1995, on or after the
comments more efficiently, please use date of publication of this notice. The
IV. Request for Written Comments only one method. The Commission will public is invited to submit comments on
The Commission requests that post all comments on the Commission’s these requests.
interested persons provide written internet website (http://www.sec.gov/ DATES: Comments should be received on
submissions of their views, data, and rules/sro.shtml). Copies of the or before April 26, 2018 to be assured
arguments with respect to the Proposed submission, all subsequent of consideration.
Rule Change with respect to the issues amendments, all written statements ADDRESSES: Send comments regarding
identified above, as well as any other with respect to the Proposed Rule the burden estimate, or any other aspect
concerns they may have with the Change that are filed with the of the information collection, including
Proposed Rule Change. In particular, the Commission, and all written suggestions for reducing the burden, to
Commission invites the written views of communications relating to the (1) Office of Information and Regulatory
interested persons concerning whether Proposed Rule Change between the Affairs, Office of Management and
the Proposed Rule Change is consistent Commission and any person, other than Budget, Attention: Desk Officer for
with Section 17A(b)(3)(F) and Rule those that may be withheld from the Treasury, New Executive Office
17Ad–22(e)(3)(ii) under the Act, cited public in accordance with the Building, Room 10235, Washington, DC
above, or any other provision of the Act, provisions of 5 U.S.C. 552, will be 20503, or email at OIRA_Submission@
rules, and regulations thereunder. available for website viewing and OMB.EOP.gov and (2) Treasury PRA
Although there do not appear to be printing in the Commission’s Public Clearance Officer, 1750 Pennsylvania
any issues relevant to approval or Reference Room, 100 F Street NE, Ave. NW, Suite 8142, Washington, DC
disapproval that would be facilitated by Washington, DC 20549, on official 20220, or email at PRA@treasury.gov.
an oral presentation of views, data, and business days between the hours of
FOR FURTHER INFORMATION CONTACT:
arguments, the Commission will 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for Copies of the submissions may be
consider, pursuant to Rule 19b–4, any
inspection and copying at the principal obtained from Jennifer Quintana by
request for an opportunity to make an
office of OCC and on OCC’s website at emailing PRA@treasury.gov, calling
oral presentation.25
https://www.theocc.com/about/ (202) 622–0489, or viewing the entire
Interested persons are invited to
publications/bylaws.jsp. information collection request at
submit written data, views, and
www.reginfo.gov.
arguments regarding whether the All comments received will be posted
Proposed Rule Change should be without change. Persons submitting SUPPLEMENTARY INFORMATION:
approved or disapproved by April 17, comments are cautioned that we do not Internal Revenue Service (IRS)
redact or edit personal identifying
23 15 U.S.C. 78q–1(b)(3)(F). information from comment submissions. 1. Title: Mortgage Credit Certificates
24 17 CFR 17Ad–22(e)(3)(ii).
You should submit only information (MCCs).
25 Section 19(b)(2) of the Act, as amended by the
that you wish to make available OMB Control Number: 1545–0922.
Securities Acts Amendments of 1975, Public Law Type of Review: Extension without
94–29, 89 Stat. 97 (1975), grants the Commission publicly.
amozie on DSK30RV082PROD with NOTICES

flexibility to determine what type of proceeding— change of a currently approved
either oral or notice and opportunity for written
All submissions should refer to File collection.
comments—is appropriate for consideration of a No. SR–OCC–2017–021 and should be Abstract: Mortgage Credit Certificates
particular proposal by a self-regulatory submitted on or before April 17, 2018. provide qualified holders of the
organization. See Securities Acts Amendments of If comments are received, any rebuttal
1975, Report of the Senate Committee on Banking, certificates with a credit against income
Housing and Urban Affairs to Accompany S. 249,
comments should be submitted on or
S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). before May 1, 2018. 26 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:07 Mar 26, 2018 Jkt 244001 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 E:\FR\FM\27MRN1.SGM 27MRN1
Document Created: 2018-03-27 01:26:41
Document Modified: 2018-03-27 01:26:41
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		83 FR 13176