83 FR 37875 - Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Definition of Flexibly Structured Options
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 149 (August 2, 2018)
Federal Register Volume 83, Issue 149 (August 2, 2018)
| Page Range | 37875-37878 | |
| FR Document | 2018-16532 |
[Federal Register Volume 83, Number 149 (Thursday, August 2, 2018)] [Notices] [Pages 37875-37878] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-16532] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83724; File No. SR-OCC-2018-010] Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Definition of Flexibly Structured Options July 27, 2018. 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 July 16, 2018, The Options Clearing Corporation (``OCC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by OCC. OCC filed the proposed rule change pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-4(f)(4)(ii) \4\ thereunder so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit [[Page 37876]] comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(4)(ii). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change OCC proposes to amend the definition of the term ``flexibly structured option'' as provided in Article I, Section 1.F.(8) of OCC's By-Laws to conform the definition to a recent rule change by Cboe Exchange, Inc. (``Cboe Options'' or ``CBOE''). The proposed changes to OCC's By-Laws can be found in Exhibit 5 to the filing. All terms with initial capitalization that are not otherwise defined herein have the same meaning as set forth in the By-Laws and Rules.\5\ --------------------------------------------------------------------------- \5\ OCC's By-Laws and Rules can be found on OCC's public website: http://optionsclearing.com/about/publications/bylaws.jsp. --------------------------------------------------------------------------- II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, OCC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. OCC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements. (A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change (1) Purpose Flexibly structured options are options that give investors the ability to customize basic option features including size, expiration date, exercise style, and certain exercise prices. OCC currently defines a ``flexibly structured option'' as an option having variable terms that are negotiated between the parties to a confirmed trade pursuant to Exchange Rules and that do not correspond to the variable terms \6\ of any series of non-flexibly structured options previously opened for trading on the Exchange (other than a series of quarterly options or short term options).\7\ In addition, OCC's By-Laws currently provide that once a series of non-flexibly structured options (other than a series of quarterly options or short term options) is opened for trading on an options exchange, any existing flexibly structured option contracts that have identical variable terms shall be fully fungible with options in such series, and shall cease to be flexibly structured options.\8\ In other words, with the exception of quarterly options and short term options series, once an exchange opens a non-flexibly structured option series having identical terms to a flexibly structured option, the flexibly structured option would become fungible with the non-flexibly structured option series. --------------------------------------------------------------------------- \6\ OCC By-Laws, Article I., Section 1.V.(1), which defines ``variable terms'' in respect of a series of option contracts other than OTC options to mean ``the name of the underlying interest, the exercise price (or, in respect of a series of delayed start options that does not yet have a set exercise price, the exercise price setting formula and exercise price setting date), the index value determinant and the index multiplier (in the case of a flexibly structured index option), the cap interval (in the case of a capped option) and the expiration date of such option contract.'' \7\ OCC By-Laws, Article I. Non-flexibly structured weekly options are called ``short term options'' in OCC's By-Laws and Rules. Under Article I of OCC By-Laws, the term ``quarterly option'' means ``an option of a series of stock options or index options that expires on the last business day of a calendar quarter,'' and the term ``short term option'' means ``an option of a series of options that expires one week after it is opened for trading.'' \8\ OCC By-Laws, Article I., Section 1.F.(8). --------------------------------------------------------------------------- Pursuant to a recent rule change, Cboe Options has made all flexibly structured options fungible with subsequently-introduced non- flexibly structured options series having identical variable terms.\9\ This includes non-flexibly structured quarterly options and short term options series.\10\ As a result, for instance, under Cboe Options' rules, a flexibly structured option that has the same terms as a subsequently-introduced quarterly or short term option series would now be fungible with that non-flexibly structured quarterly or short term option series. --------------------------------------------------------------------------- \9\ See Securities Exchange Act Release No. 83205 (May 9, 2018), 83 FR 22550 (May 15, 2018) (SR-CBOE-2018-008) (Order Approving a Proposed Rule Change Relating to Flexibly Structured Options) (``Cboe Options has proposed to amend the rule to make all FLEX Options fungible with Non-FLEX Options that have identical terms.'') \10\ This also includes weekly expirations and End of Month (``EOM'') expirations. Cboe Options stated in its proposal that flexibly structured options with these expirations were not originally intended to be fungible. See Securities Exchange Release Act No. 82622 (February 2, 2018), 83 FR 5668 (February 8, 2018) (SR- CBOE-2018-008) (Notice of Filing of a Proposed Rule Change Relating to Flexibly Structured Options). --------------------------------------------------------------------------- Cboe Options has requested that OCC amend its By-Laws to allow Cboe Options' rule change to become effective. Cboe Options noted in its rule change that the change ``will have the effect of more FLEX Options becoming fungible with Non-Flex Options, which will potentially increase the liquidity available to traders of FLEX Options.'' \11\ --------------------------------------------------------------------------- \11\ See Securities Exchange Act Release No. 82622 (February 2, 2018), 83 FR 5668 (February 8, 2018) (SR-CBOE-2018-008) (Notice of Filing of a Proposed Rule Change Relating to Flexibly Structured Options). --------------------------------------------------------------------------- To clear and settle flexibly structured options traded on Cboe Options in a manner that is consistent with Cboe Options' rules, OCC proposes to amend its definition of ``flexibly structured option'' in Article I of its By-Laws by deleting ``(other than a series of quarterly options or short term options)'' in the two instances in which it appears in the definition.\12\ OCC added this text to its definition of a flexibly structured option in 2009 to ensure consistency with Cboe Options rules, which were amended at that time to, among other things, allow for flexibly structured options to become fungible with subsequently introduced non-flexibly structured options series that have the same terms (other than a series of quarterly options or short term options).\13\ Consistent with Cboe Options' rule change at that time, OCC amended its definition of flexibly structured options in 2009 to provide that a flexibly structured option cannot have the same terms as any series of non-flexibly structured options previously opened for trading on the exchange other than a series of quarterly options or short term options.\14\ OCC intended the 2009 amended definition to clarify that a flexibly structured option could share the same terms as a non-flexibly structured quarterly or short term option series and still be considered a flexibly structured option. Consistent with Cboe Options' most recent rule change, OCC proposes to eliminate from the language of its definition of a flexibly structured option the first instance of ``(other than a series of quarterly options or short term options)'' to provide that a flexibly structured option cannot share the same terms as a non-flexibly structured option series that has been previously opened for trading on the exchange, including a currently-trading quarterly options or short term options series. Consistent with Cboe Options' rules, OCC believes that this change would amend the definition in a manner to make it clear that flexibly structured options cannot share the same terms as non-flexibly structured option series [[Page 37877]] that have been previously opened for trading on the exchange. --------------------------------------------------------------------------- \12\ OCC By-Laws, Article I., Section 1.F.(8). \13\ See Securities Exchange Act Release No. 59675 (April 1, 2009), 74 FR 15794 (April 7, 2009) (SR-OCC-2009-05); Securities Exchange Act Release No. 59417 (February 18, 2009), 74 FR 8591 (February 25, 2009) (order approving SR-CBOE-2008-115). \14\ See Securities Exchange Act Release No. 59060 (December 5, 2008), 73 FR 76075 (December 15, 2008) (SR-CBOE-2008-115) (``subject to certain aggregation requirements for cash settled options, the current FLEX Rules do permit the expiration of FLEX Options on the same day that Non-FLEX quarterly index options (``QIX'') and Non- FLEX Weeklys Options expire.''). --------------------------------------------------------------------------- The second instance of ``(other than a series of quarterly options or short term options)'' in the flexibly structured option definition was adopted in 2009 to provide, consistent with Cboe Options rules then in effect and as an exception to general fungibility, that a quarterly options or short term options series with the same terms as a flexibly structured option would not become fungible with that flexibly structured option. As noted above, Cboe Options has recently adopted a rule change to eliminate this restriction and allow all flexibly structured options to become fungible with non-flexibly structured options series having identical variable terms that are later opened for trading on the exchange.\15\ Accordingly, OCC proposes to eliminate the second instance of this text from the language of the definition of a flexibly structured option in OCC's By-Laws to make it consistent with Cboe Options' rules. As amended, OCC's definition of a flexibly structured option would provide that once a series of non-flexibly structured options is opened for trading on an exchange, any existing flexibly structured option contracts that have identical variable terms shall be fully fungible with options in such series, and shall cease to be flexibly structured options. OCC believes that this change would allow OCC clear and settle flexibly structured options traded on Cboe Options in a manner that is consistent with Cboe Options' rules and would have the effect of making more flexibly structured options fungible with identical non-flexibly structured options series. --------------------------------------------------------------------------- \15\ See supra note 9. --------------------------------------------------------------------------- (2) Statutory Basis Section 17A(b)(3)(F) of the Securities Exchange Act of 1934, as amended (``Act'') \16\ requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities and derivatives transactions, to foster cooperation and coordination with persons engaged in clearance and settlement, and, in general, to protect investors and the public interest. OCC believes that the proposed rule change is consistent with Section 17A(b)(3)(F) of Act \17\ because it is designed to promote the prompt and accurate clearance and settlement of securities transactions in flexibly structured options. The proposed rule change accomplishes this by maintaining consistency between OCC's By-Laws and Rules and Cboe Options' rules as applied to the clearance and settlement of flexibly structured options. OCC further believes that the proposed rule change accomplishes this by providing that all flexibly structured options are subject to the same requirements. The proposed rule change would make all flexibly structured options fungible with subsequently introduced non-flexibly structured options with identical terms, thereby increasing operational efficiency by eliminating the need for OCC to monitor and treat a certain group of flexibly structured options (i.e., ones with the same terms as quarterly options and short term options series) differently than other flexibly structured options. In addition, Cboe Options has noted that its rule change will potentially increase the liquidity available to traders of flexibly structured options.\18\ Moreover, the Commission has previously noted that it would be concerned if flexibly structured options were to act as a surrogate for trading in standardized options (i.e., non-flexibly structured exchange-traded options) and that allowing for flexibly structured options to become fungible with standardized options would help alleviate this concern.\19\ In this respect, the Commission noted the following when it initially approved Cboe Options' rules to provide for fungibility between flexibly structured options and standardized options series with the same terms: --------------------------------------------------------------------------- \16\ 15 U.S.C. 78q-1(b)(3)(F). \17\ 15 U.S.C. 78q-1(b)(3)(F). \18\ See supra note 10. \19\ See Securities Exchange Act Release No. 59417 (February 18, 2009), 74 FR 8591 (February 25, 2009) (order approving SR-CBOE-2008- 115). See also supra note 9. However, the rules, as proposed by the CBOE, help to ensure that FLEX market participants cannot avoid the protections provided to retail investors in the standardized options market simply by trading FLEX Options. In this regard, once a series is open for trading, new FLEX Options are not permitted in that series. In addition, once a Non-FLEX Options series is open, all outstanding FLEX Options in the same series become fungible with the standardized market, are traded pursuant to standardized market trading rules, and are aggregated for position and exercise limit purposes. These rules help to alleviate these surrogate concerns and should help to ensure that FLEX Options market continues to operate as intended.\20\ --------------------------------------------------------------------------- \20\ See Securities Exchange Act Release No. 59417 (February 18, 2009), 74 FR 8591 (February 25, 2009) (order approving SR-CBOE-2008- 115). The proposed rule change would help to further address this concern by allowing all flexibly structured options to become fungible with non-flexibly structured options series with the same terms that are later opened for trading on the exchange. In addition, the proposed rule change is not inconsistent with the existing By-Laws and Rules of OCC, including any rules proposed to be amended. (B) Clearing Agency's Statement on Burden on Competition Section 17A(b)(3)(I) of the Act \21\ requires that the rules of a clearing agency not impose any burden on competition not necessary or appropriate in furtherance of the Act. OCC does not believe that the proposed rule change would impact or impose any burden on competition.\22\ The proposed rule change would not affect the competitive dynamics between clearing members, but rather would solely affect the treatment of flexibly structured options with the same terms as quarterly options and short term options series. In this respect, it would facilitate consistent treatment of such flexibly structured options with all other flexibly structured options, providing that all flexibly structured options will become fungible with subsequently- introduced standardized options with the same terms. The proposed rule change also would not inhibit access to OCC's services or disadvantage or favor any particular user in relationship to another. The proposed rule change would treat equally all holders of flexibly structured options with the same terms as subsequently introduced quarterly options and short term options series, providing that such flexibly structured options held by them would become fungible with such standardized options series. For the foregoing reasons, OCC believes the proposed rule change is in the public interest, would be consistent with the requirements of the Act applicable to clearing agencies, and would not impact or impose a burden on competition. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78q-1(b)(3)(I). \22\ 15 U.S.C. 78q-1(b)(3)(I). --------------------------------------------------------------------------- (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments on the proposed rule change were not and are not intended to be solicited with respect to the proposed rule change and none have been received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) [[Page 37878]] of the Act \23\ and Rule 19b-4(f)(4)(ii) \24\ thereunder because it effects a change in an existing service that (i) does not adversely affect the safeguarding of securities or funds in the custody or control of the clearing agency or for which it is responsible and (ii) does not significantly affect the respective rights or obligations of the clearing agency or persons using the service. --------------------------------------------------------------------------- \23\ 15 U.S.C. 78s(b)(3)(A). \24\ 17 CFR 240.19b-4(f)(4)(ii). --------------------------------------------------------------------------- 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.\25\ --------------------------------------------------------------------------- \25\ Notwithstanding the foregoing, implementation of this rule change will be delayed until this rule change is deemed certified under CFTC Regulation Sec. 40.6. --------------------------------------------------------------------------- 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 CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-OCC-2018-010 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-OCC-2018-010. 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/components/docs/legal/rules_and_bylaws/sr_occ_18_010.pdf. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-OCC-2018-010 and should be submitted on or before August 23, 2018. --------------------------------------------------------------------------- \26\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\26\ Robert W. Errett, Deputy Secretary. [FR Doc. 2018-16532 Filed 8-1-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices 37875
rulebook will benefit Members by which it was filed, or such shorter time those that may be withheld from the
increasing transparency around the as the Commission may designate, it has public in accordance with the
operation of the Exchange. Furthermore, become effective pursuant to Section provisions of 5 U.S.C. 552, will be
the proposed definitions being included 19(b)(3)(A)(iii) of the Act 10 and available for website viewing and
in the rulebook will more clearly and subparagraph (f)(6) of Rule 19b–4 printing in the Commission’s Public
accurately reflect the information thereunder.11 Reference Room, 100 F Street NE,
included on the protocols, and will be At any time within 60 days of the Washington, DC 20549, on official
harmonized with language to be filing of the proposed rule change, the business days between the hours of
included in the rules of its affiliated Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
exchanges to the extent that the temporarily suspend such rule change if filing also will be available for
protocols operate in the same manner. it appears to the Commission that such inspection and copying at the principal
The protocols described in this filing action is: (i) Necessary or appropriate in office of the Exchange. All comments
provide a range of important features to the public interest; (ii) for the protection received will be posted without change.
Members, including the ability to of investors; or (iii) otherwise in Persons submitting comments are
submit quotes and orders, and perform furtherance of the purposes of the Act. cautioned that we do not redact or edit
other functions necessary to manage If the Commission takes such action, the personal identifying information from
trading on the Exchange. The Exchange Commission shall institute proceedings comment submissions. You should
believes codifying the quote and order to determine whether the proposed rule submit only information that you wish
entry protocols will increase should be approved or disapproved. to make available publicly. All
transparency to the Members that use submissions should refer to File
these protocols to connect to the IV. Solicitation of Comments
Number SR–MRX–2018–25 and should
Exchange. Interested persons are invited to be submitted on or before August 23,
submit written data, views, and 2018.
B. Self-Regulatory Organization’s
arguments concerning the foregoing,
Statement on Burden on Competition For the Commission, by the Division of
including whether the proposed rule Trading and Markets, pursuant to delegated
In accordance with Section 6(b)(8) of change is consistent with the Act. authority.12
the Act,9 the Exchange does not believe Comments may be submitted by any of
that the proposed rule change will Robert W. Errett,
the following methods:
impose any burden on intermarket or Deputy Secretary.
intramarket competition that is not Electronic Comments [FR Doc. 2018–16526 Filed 8–1–18; 8:45 am]
necessary or appropriate in furtherance • Use the Commission’s internet BILLING CODE 8011–01–P
of the purposes of the Act. As explained comment form (http://www.sec.gov/
above, the Exchange is codifying the rules/sro.shtml); or
quote and order entry protocols that • Send an email to rule-comments@ SECURITIES AND EXCHANGE
Members use to connect to the sec.gov. Please include File Number SR– COMMISSION
Exchange’s trading system. The MRX–2018–25 on the subject line.
Exchange does not believe that [Release No. 34–83724; File No. SR–OCC–
Paper Comments
codifying these protocols in the 2018–010]
rulebook will have any competitive • Send paper comments in triplicate
impact. FIX, OTTO, and SQF were to Secretary, Securities and Exchange Self-Regulatory Organizations; The
established in SR–MRX–2017–13, and Commission, 100 F Street NE, Options Clearing Corporation; Notice
are already available to Members, who Washington, DC 20549–1090. of Filing and Immediate Effectiveness
use these protocols to connect and All submissions should refer to File of Proposed Rule Change To Amend
manage their trading activity on the Number SR–MRX–2018–25. This file the Definition of Flexibly Structured
Exchange. Adding rule language that number should be included on the Options
describes these Exchange offerings will subject line if email is used. To help the July 27, 2018.
increase transparency around the Commission process and review your
operation of the Exchange without comments more efficiently, please use Pursuant to Section 19(b)(1) of the
having any impact on intermarket or only one method. The Commission will Securities Exchange Act of 1934
intramarket competition. post all comments on the Commission’s (‘‘Act’’),1 and Rule 19b–4 thereunder,2
internet website (http://www.sec.gov/ notice is hereby given that on July 16,
C. Self-Regulatory Organization’s 2018, The Options Clearing Corporation
Statement on Comments on the rules/sro.shtml). Copies of the
submission, all subsequent (‘‘OCC’’) filed with the Securities and
Proposed Rule Change Received From Exchange Commission (‘‘Commission’’)
Members, Participants, or Others amendments, all written statements
with respect to the proposed rule the proposed rule change as described
No written comments were either change that are filed with the in Items I, II, and III below, which Items
solicited or received. Commission, and all written have been prepared by OCC. OCC filed
III. Date of Effectiveness of the communications relating to the the proposed rule change pursuant to
Proposed Rule Change and Timing for proposed rule change between the Section 19(b)(3)(A) 3 of the Act and Rule
Commission Action Commission and any person, other than 19b–4(f)(4)(ii) 4 thereunder so that the
proposal was effective upon filing with
Because the foregoing proposed rule the Commission. The Commission is
daltland on DSKBBV9HB2PROD with NOTICES
10 15 U.S.C. 78s(b)(3)(A)(iii).
change does not: (i) Significantly affect 11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– publishing this notice to solicit
the protection of investors or the public 4(f)(6) requires a self-regulatory organization to give
interest; (ii) impose any significant the Commission written notice of its intent to file 12 17 CFR 200.30–3(a)(12).
burden on competition; and (iii) become the proposed rule change at least five business days 1 15 U.S.C. 78s(b)(1).
prior to the date of filing of the proposed rule
operative for 30 days from the date on change, or such shorter time as designated by the
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
Commission. In this case, the Commission waives
9 15 U.S.C. 78f(b)(8). the five-day pre-filing requirement. 4 17 CFR 240.19b–4(f)(4)(ii).
VerDate Sep<11>2014 17:06 Aug 01, 2018 Jkt 244001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\02AUN1.SGM 02AUN1](https://thefederalregister.org/doc/83_FR_38024/page/1.svg)
![37878 Federal Register / Vol. 83, No. 149 / Thursday, August 2, 2018 / Notices
of the Act 23 and Rule 19b–4(f)(4)(ii) 24 available for website viewing and Analyst, 202–205–7030, curtis.rich@
thereunder because it effects a change in printing in the Commission’s Public sba.gov;
an existing service that (i) does not Reference Room, 100 F Street NE, SUPPLEMENTARY INFORMATION: SBA Form
adversely affect the safeguarding of Washington, DC 20549, on official 1050, Settlement Sheet is used in SBA’s
securities or funds in the custody or business days between the hours of 7(a) Loan Program to collect information
control of the clearing agency or for 10:00 a.m. and 3:00 p.m. Copies of such from lenders and borrowers regarding
which it is responsible and (ii) does not filing also will be available for the disbursement of loan proceeds. SBA
significantly affect the respective rights inspection and copying at the principal relies on this information during the
or obligations of the clearing agency or office of OCC and on OCC’s website at guaranty purchase review process as a
persons using the service. https://www.theocc.com/components/ component in determining whether to
At any time within 60 days of the docs/legal/rules_and_bylaws/sr_occ_18_ honor a loan guaranty. The currently
filing of the proposed rule change, the 010.pdf.
Commission summarily may approved form primarily requires the
All comments received will be posted lender and borrower to certify to
temporarily suspend such rule change if without change. Persons submitting
it appears to the Commission that such whether they complied with a series of
comments are cautioned that we do not loan requirements. The current form
action is necessary or appropriate in the redact or edit personal identifying
public interest, for the protection of also requires submission of
information from comment submissions. documentation (e.g., joint payee or
investors, or otherwise in furtherance of You should submit only information
the purposes of the Act.25 cancelled checks, invoices or paid
that you wish to make available receipts, and wire transfer records) in
IV. Solicitation of Comments publicly. support of the certification. SBA has
All submissions should refer to File
Interested persons are invited to determined that this current information
Number SR–OCC–2018–010 and should
submit written data, views and collection lacks enough specificity to
be submitted on or before August 23,
arguments concerning the foregoing, yield the information regarding use of
2018.
including whether the proposed rule proceeds that would enable the agency
change is consistent with the Act. For the Commission, by the Division of to effectively monitor compliance with
Comments may be submitted by any of Trading and Markets, pursuant to delegated loan disbursement procedures. As a
authority.26 result, SBA is proposing to change both
the following methods:
Robert W. Errett, the content and format of the Form
Electronic Comments Deputy Secretary. 1050.
• Use the Commission’s internet [FR Doc. 2018–16532 Filed 8–1–18; 8:45 am] The form will be divided into several
comment form (http://www.sec.gov/ BILLING CODE 8011–01–P sections to clearly identify the
rules/sro.shtml); or information to be submitted. The
• Send an email to rule-comments@ revised form will continue to collect the
sec.gov. Please include File Number SR– SMALL BUSINESS ADMINISTRATION same basic identifying information such
OCC–2018–010 on the subject line. as loan amount, loan number and
Paper Comments Data Collection Available for Public lender’s name. In addition, the form will
Comments continue to require certifications from
• Send paper comments in triplicate both the lender and borrower regarding
to Brent J. Fields, Secretary, Securities 60-Day notice and request for
ACTION: compliance with the disbursement
and Exchange Commission, 100 F Street comments. requirements and accuracy of
NE, Washington, DC 20549–1090. information submitted. However,
All submissions should refer to File SUMMARY: The Small Business
Administration (SBA) intends to request generally the enumerated statements
Number SR–OCC–2018–010. This file will be reduced or combined and
number should be included on the approval, from the Office of
Management and Budget (OMB) for the replaced with requests for specific
subject line if email is used. To help the information. the revised form will
Commission process and review your collection of information described
below. The Paperwork Reduction Act include a listing of all of the uses of loan
comments more efficiently, please use proceeds. For each applicable use,
only one method. The Commission will (PRA) of 1995, requires federal agencies
to publish a notice in the Federal information regarding the names of the
post all comments on the Commission’s payees, the amount disbursed, and the
internet website (http://www.sec.gov/ Register concerning each proposed
collection of information before authorized amount remaining will be
rules/sro.shtml). Copies of the collected. The revised form will also
submission, all subsequent submission to OMB, and to allow 60
days for public comment in response to include a section to document the
amendments, all written statements borrower’s equity injection of cash,
with respect to the proposed rule the notice. This notice complies with
that requirement. assets, and any seller contribution (on
change that are filed with the full standby for the life of the loan).
Commission, and all written DATES: Submit comments on or before
These changes will allow the lender
communications relating to the October 1, 2018. to more clearly document all of the
proposed rule change between the ADDRESSES: Send all comments to Susan sources and uses of funds at the time of
Commission and any person, other than Suckfiel, Supervisory Financial Analyst, loan closing. This additional
those that may be withheld from the Office of Capital Access, Small Business information will better allow both
public in accordance with the Administration, 409 3rd Street, 8th lenders and SBA staff to ensure that the
daltland on DSKBBV9HB2PROD with NOTICES
provisions of 5 U.S.C. 552, will be Floor, Washington, DC 20416. necessary information is collected at the
FOR FURTHER INFORMATION CONTACT: time of loan origination
23 15 U.S.C. 78s(b)(3)(A). Susan Suckfiel, Supervisory Financial
24 17 CFR 240.19b–4(f)(4)(ii).
Analyst, 202–205–6443, susan.suckfiel@ (a) Solicitation of Public Comments
25 Notwithstanding the foregoing, implementation
of this rule change will be delayed until this rule sba.gov or Curtis B. Rich, Management SBA is requesting comments on (i)
change is deemed certified under CFTC Regulation Whether the collection of information is
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Document Created: 2018-08-02 01:29:04
Document Modified: 2018-08-02 01:29:04
| 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 37875 |
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