60 Day Notice

Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices
Description is consistent with the
requirements of Section 17A(b)(3)(F) of
the Exchange Act.23
B. Consistency With Rule 17Ad–22(e)(6)
Under the Exchange Act
Rules 17Ad–22(e)(6) generally
requires each covered clearing agency
that provides central counterparty
services to establish, implement,
maintain, and enforce written policies
and procedures reasonably designed to
cover its credit exposure to its
participants by establishing a risk-based
margin system that meets certain
standards.24 As described above, the
STANS Methodology Description
addresses OCC’s modeling choices and
the interconnectedness of STANS model
components in producing risk-based
margin requirements.
Section (i) under Rule 17Ad–22(e)(6)
requires that the policies and
procedures required pursuant to Rule
17Ad–22(e)(6) describe a risk-based
margin system that considers and
produces margin levels commensurate
with the risks and particular attributes
of each relevant product, portfolio, and
market.25 As described above, the
STANS Methodology Description covers
various components of STANS designed
to address the particular attributes of the
products that OCC clears (e.g.,
American-style options, European-style
options, Asian FLEX options, Cliquet
options) as well as the risks presented
by a specific portfolio (e.g., liquidation
cost charges). Further, the STANS
Methodology Description also describes
OCC’s process addressing the entrance
of new products into the markets for
which it clears (identifying and
separately processing risk factors with
incomplete data sets that lack sufficient
data to estimate the copula).
Section (iii) under Rule 17Ad–22(e)(6)
requires that the policies and
procedures required pursuant to Rule
17Ad–22(e)(6) describe a risk-based
margin system that calculates margin
sufficient to cover its potential future
exposure to participants in the interval
between the last margin collection and
the close out of positions following a
participant default.26 As described
above, the STANS Methodology
Description discusses various model
utilities that pertain to events occurring
between the collection of margin and
closing out of a defaulted Clearing
Member’s portfolio (e.g., cash dividend
payments, option expiration, and
changes to portfolio specific haircuts
23 15

U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(6).
25 17 CFR 240.17Ad–22(e)(6)(i).
26 17 CFR 240.17Ad–22(e)(6)(iii).
24 17

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due to the withdrawal or deposit of
collateral).
Section (v) under Rule 17Ad–22(e)(6)
requires that the policies and
procedures required pursuant to Rule
17Ad–22(e)(6) describe a risk-based
margin system that uses an appropriate
method for measuring credit exposure to
accounts for relevant product risk
factors and portfolio effects across
products.27 As discussed above, the
STANS Methodology Description covers
the various STANS components that
provide the inputs and outputs
necessary for OCC to conduct implied
volatility smoothing and options pricing
(e.g., model components addressing
derivatives based on equities and
treasuries as well as generic futures,
variance futures, and volatility indexbased futures) as well as the implied
volatility smoothing and options pricing
themselves.
Based on the foregoing, the
Commission believes that the
replacement of the Margins
Methodology with the STANS Margin
Description is consistent with the
requirements of Rule 17Ad–22(e)(6)
under the Exchange Act.28
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the Proposed
Rule Change is consistent with the
requirements of the Exchange Act, and
in particular, the requirements of
Section 17A of the Exchange Act 29 and
the rules and regulations thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Exchange Act,30
that the Proposed Rule Change (SR–
OCC–2020–016) be, and hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–02859 Filed 2–11–21; 8:45 am]
BILLING CODE 8011–01–P

27 17

CFR 240.17Ad–22(e)(6)(v).
CFR 240.17Ad–22(e)(6).
29 In approving this Proposed Rule Change, the
Commission has considered the proposed rules’
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
30 15 U.S.C. 78s(b)(2).
31 17 CFR 200.30–3(a)(12).
28 17

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9413

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–125, OMB Control No.
3235–0104]

Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Form 3

Notice is hereby given that pursuant,
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collections of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Exchange Act Forms 3 is filed by
insiders of public companies that have
a class of securities registered under
Section 12 of the Exchange Act. Form 3
is an initial statement beneficial
ownership of securities. Approximately
21,968 insiders file Form 3 annually and
it takes approximately 0.50 hours to
prepare for a total of 10,984 annual
burden hours (0.50 hours per response
× 21,968 responses).
Written comments are invited on: (a)
Whether this proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comment to
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
[email protected].

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9414

Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices

Dated: February 8, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.

SECURITIES AND EXCHANGE
COMMISSION

unless it displays a currently valid
control number.
Please direct your written comment to
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
[email protected].

[SEC File No. 270–170, OMB Control No.
3235–0167]

Dated: February 8, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.

[FR Doc. 2021–02862 Filed 2–11–21; 8:45 am]
BILLING CODE 8011–01–P

[FR Doc. 2021–02863 Filed 2–11–21; 8:45 am]

Proposed Collection; Comment
Request

BILLING CODE 8011–01–P

Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Extension:
Form 15

Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form 15 (17 CFR 249.323) is a
certification of termination of a class of
security under Section 12(g) or notice of
suspension of duty to file reports
pursuant to Sections 13 and 15(d) of the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.). We estimate that
approximately 1,062 issuers file Form
15 annually and it takes approximately
1.5 hours per response to prepare for a
total of 1,593 annual burden hours (1.5
hours per response × 1,062 responses).
Written comments are invited on: (a)
Whether this proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information

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SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–36, OMB Control No.
3235–0028]

Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 17f–2(d)

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 17f–2(d) (17 CFR 240.17f–2(d)),
under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 17f–2(d) requires that records
created pursuant to the fingerprinting
requirements of Section 17(f)(2) of the
Act be maintained and preserved by
every member of a national securities
exchange, broker, dealer, registered
transfer agent and registered clearing
agency (‘‘covered entities’’ or
‘‘respondents’’); permits, under certain
circumstances, the records required to
be maintained and preserved by a
member of a national securities
exchange, broker, or dealer to be
maintained and preserved by a selfregulatory organization that is also the
designated examining authority for that
member, broker or dealer; and permits
the required records to be preserved on
microfilm. The general purpose of Rule
17f–2 is to: (i) Identify security risk
personnel; (ii) provide criminal record
information so that employers can make
fully informed employment decisions;
and (iii) deter persons with criminal
records from seeking employment or

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association with covered entities. The
rule enables the Commission or other
examining authority to ascertain
whether all covered persons are being
fingerprinted and whether proper
procedures regarding fingerprinting are
being followed. Retention of these
records for a period of not less than
three years after termination of a
covered person’s employment or
relationship with a covered entity
ensures that law enforcement officials
will have easy access to fingerprint
cards on a timely basis. This in turn acts
as an effective deterrent to employee
misconduct.
Approximately 3,900 respondents are
subject to the recordkeeping
requirements of the rule. Each
respondent maintains approximately 68
new records per year, each of which
takes approximately 2 minutes per
record to maintain, for an annual
burden of approximately 2.2666667
hours (68 records times 2 minutes). The
total annual time burden for all
respondents is approximately 8,840
hours (3,900 respondents times
2.2666667 hours). As noted above, all
records maintained subject to the rule
must be retained for a period of not less
than three years after termination of a
covered person’s employment or
relationship with a covered entity. In
addition, we estimate the total annual
cost burden to respondents is
approximately $39,000 in third party
storage costs.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].
Dated: February 9, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–02958 Filed 2–11–21; 8:45 am]
BILLING CODE 8011–01–P

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