30 Day Notice

Federal Register / Vol. 89, No. 146 / Tuesday, July 30, 2024 / Notices
SECURITIES AND EXCHANGE
COMMISSION

Dated: July 24, 2024.
Sherry R. Haywood,
Assistant Secretary.

[SEC File No. 270–205, OMB Control No.
3235–0194]

[FR Doc. 2024–16668 Filed 7–29–24; 8:45 am]
BILLING CODE 8011–01–P

Submission for OMB Review;
Comment Request; Extension: Rule
24b–1

SECURITIES AND EXCHANGE
COMMISSION

khammond on DSKJM1Z7X2PROD with NOTICES

Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA
Services, 100 F Street NE,
Washington, DC 20549–2736
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 24b–1 (17 CFR 240.24b–1) under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 24b–1 requires a national
securities exchange to keep and make
available for public inspection a copy of
its registration statement and exhibits
filed with the Commission, including
any amendments thereto.
There are 24 national securities
exchanges that spend approximately
one-half hour each per year complying
with this rule, for an aggregate total time
burden of approximately 12 hours per
year. The staff estimates that the average
cost per respondent is approximately
$82.45 per year ($17.67 for copying plus
$64.78 for storage), resulting in a total
cost burden for all respondents of
approximately $1,979 per year.
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 by
August 29, 2024 to (i) www.reginfo.gov/
public/do/PRAMain and (ii) Austin
Gerig, Director/Chief Data Officer,
Securities and Exchange Commission, c/
o Oluwaseun Ajayi, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].

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16:51 Jul 29, 2024

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[Release No. 34–100584; File No. SR–OCC–
2024–009]

Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing of Proposed Rule Change by
The Options Clearing Corporation
Regarding Its Backtesting Framework
and To Establish a Resource
Backtesting Margin Charge
July 24, 2024.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule
19b–4 thereunder,2 notice is hereby
given that on July 11, 2024, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared primarily by OCC.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
This proposed rule change would (i)
amend OCC’s Margin Policy to more
comprehensively describe OCC’s
approach to backtesting, including how
OCC establishes and reviews
assumptions underlying OCC’s
backtesting and criteria for escalating
backtesting results; (ii) provide for a
new category of backtesting designed to
evaluate whether OCC maintains
sufficient margin resources to cover its
credit exposure to the liquidation
portfolio of each Clearing Member from
the last margin collection until the end
of the liquidation horizon following the
default of that Clearing Member with a
high degree of confidence (as defined
below, ‘‘Resource Backtesting’’); (iii)
implement a Resource Backtesting
Margin Charge that OCC would collect
from Clearing Members who experience
Resource Backtesting deficiencies that
bring their margin coverage rates below
a 99% coverage target; and (iv) make
certain conforming changes to other

PO 00000

1 15
2 17

U.S.C. 78s(b)(1).
CFR 240.19b–4.

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OCC rules to reflect these proposed
changes.
Proposed changes to OCC’s Rules are
contained in Exhibit 5A to File No. SR–
OCC–2024–009. Proposed changes to
OCC’s Margin Policy, Model Risk
Management Policy and STANS
Methodology Description are contained
in confidential Exhibits 5B, 5C, and 5D
to File No. SR–OCC–2024–009,
respectively. Material proposed to be
added is marked by underlining and
material proposed to be deleted is
marked with strikethrough text. All
terms with initial capitalization that are
not otherwise defined herein have the
same meaning as set forth in the OCC
By-Laws and Rules.3
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
OCC is the sole clearing agency for
standardized equity options listed on
national securities exchanges registered
with the Commission. OCC also clears
certain stock loan and futures
transactions. In its role as a clearing
agency, OCC is the guarantor for all
contracts cleared through OCC; that is,
OCC becomes the buyer to every seller
or the seller to every buyer (or the
lender to every borrower and the
borrower to every lender, in the case of
stock loans). As a central counterparty,
OCC is exposed to credit risk in the
event of the failure of one its members
because OCC is obligated to perform on
the contracts it clears even when one of
its members defaults.
OCC manages this credit risk through
various safeguards to ensure that it has
sufficient financial resources in the
event of a Clearing Member failure. For
example, OCC periodically collects
margin collateral from its Clearing
Members, which is used to cover the
credit exposures they individually
present to OCC. OCC has established a
proprietary system, the System for
3 OCC’s By-Laws and Rules can be found on
OCC’s public website: https://www.theocc.com/
Company-Information/Documents-and-Archives/
By-Laws-and-Rules.

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