Proposed Collection; Comment Request, 10790-10791 [E9-5298]
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10790
Federal Register / Vol. 74, No. 47 / Thursday, March 12, 2009 / Notices
implementation of 10 CFR 73.21, 10
CFR 73.22 or 10 CFR 73.23. It requires
no action or written response. Any
action by addressees to implement
changes to their safeguards information
protection system, or procedures in
accordance with the information in this
RIS ensures compliance with 10 CFR
part 73 and existing orders, is strictly
voluntary and therefore, is not a backfit
under 10 CFR 50.109, ‘‘Backfitting.’’
Consequently, the NRC staff did not
perform a backfit analysis.
SECURITIES AND EXCHANGE
COMMISSION
Federal Register Notification
• Removal From SGI or SGI–M Category
When documents or other matter are
removed from the SGI category, because
the information no longer meets the
criteria, care must be exercised to
ensure that any document or other
matter decontrolled not disclose SGI in
some other form or be combined with
other unprotected information to
disclose SGI. The authority to determine
that a document or other matter may be
decontrolled will only be exercised by
the NRC, with the NRC approval, or in
consultation with the individual or
organization that made the original SGI
determination.
cprice-sewell on PRODPC61 with NOTICES
A mobile device, such as a laptop,
may be used for processing SGI
provided the device is secured in a
locked security storage container when
not in use. Where previously not
addressed in the old rule, the new rule
makes allowance for electronic systems
that have been used for storage,
processing or production of SGI to
migrate to non-SGI exclusive use. Any
electronic system that has been used for
storage, processing or production of SGI
must be free of recoverable SGI prior to
being returned to nonexclusive use.
However, SGI–M need not be processed
on a stand-alone computer. The rule
permits SGI–M to be stored, processed
or produced on a computer or computer
system, provided that the system is
assigned to the licensee’s or contractor’s
facility. SGI–M files must be protected,
either by a password or encryption.
Word processors such as typewriters are
not subject to these requirements as long
as they do not transmit information
offsite.
This RIS does not contain any
information collections and, therefore,
is not subject to the requirements of the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.)
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 (the
‘‘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:
Rule 489 (17 CFR 230.489) under the
Securities Act of 1933 (15 U.S.C. 77a et
seq.) requires foreign banks and foreign
insurance companies and holding
companies and finance subsidiaries of
foreign banks and foreign insurance
companies that are exempted from the
definition of ‘‘investment company’’ by
virtue of Rules 3a–1 (17 CFR 170.3a–1),
3a–5 (17 CFR 270.3a–5), and 3a–6 (17
CFR 270.3a–6) under the Investment
Company Act of 1940 (15 U.S.C. 80a–1
et seq.) to file Form F–N (17 CFR
239.43), under the Securities Act of
1933 to appoint an agent for service of
process when making a public offering
of securities in the United States.
Approximately 19 entities are required
by Rule 489 to file Form F–N, which is
estimated to require an average of one
hour to complete. The estimated annual
burden of complying with the rule’s
filing requirement is approximately 24
hours, as some of the entities submitted
multiple filings.
The estimates of average burden hours
are made solely for the purposes of the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.) and are not derived
from a comprehensive or even
representative survey or study of the
cost of Commission rules and forms.
Written comments are invited on: (a)
Whether the 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 of 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
• Destruction of Matter Containing SGI
or SGI–M
The final rule now states that SGI and
SGI–M shall be destroyed when no
longer needed. The information can be
destroyed by burning, shredding or any
other method that precludes
reconstruction by means available to the
public at large. Of particular note in the
new rule it is stated one-quarter inch
dimension size for pieces that are
considered destroyed when thoroughly
mixed with several pages or documents.
The NRC will continue to evaluate its
requirements, policies and guidance
concerning the protection and
unauthorized disclosure of SGI.
Licensees, certificate holders, applicants
and other persons who produce, receive,
or acquire SGI will be informed of
proposed revisions or clarifications.
Backfit Discussion
This RIS does not represent a new or
different staff position regarding the
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14:56 Mar 11, 2009
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To be done after the public comments
periods.
Congressional Review Act
This RIS is not a rule as designated by
the Congressional Review Act (5 U.S.C.
801–886) and therefore, is not subject to
the Act.
Paperwork Reduction Act Statement
Contact
Please direct any questions about this
matter to Robert Norman, at 301–415–
2278 or by e-mail at
robert.norman@nrc.gov.
End of Draft Regulatory Issue Summary
Documents may be examined, and/or
copied for a fee, at the NRC’s Public
Document Room at One White Flint
North, 11555 Rockville Pike (first floor),
Rockville, Maryland. Publicly available
records will be accessible electronically
from the Agencywide Documents
Access and Management System
(ADAMS) Public Electronic Reading
Room on the Internet at the NRC Web
site, https://www.nrc.gov/NRC/ADAMS/
index.html. If you do not have access to
ADAMS or if you have problems in
accessing the documents in ADAMS,
contact the NRC Public Document Room
(PDR) reference staff at 1–800–397–4209
or 301–415–4737 or by e-mail to
pdr@nrc.gov.
Dated at Rockville, Maryland, this 4th day
of March 2009.
For The Nuclear Regulatory Commission,
Martin C. Murphy,
Chief, Generic Communications Branch,
Division of Policy and Rulemaking, Office
of Nuclear Reactor Regulation.
[FR Doc. E9–5296 Filed 3–11–09; 8:45 am]
BILLING CODE 7590–01–P
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Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of Investor
Education and Advocacy,
Washington, DC 20549.
Extension:
Rule 489 and Form F–N, SEC File No. 270–
361, OMB Control No. 3235–0411.
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Federal Register / Vol. 74, No. 47 / Thursday, March 12, 2009 / Notices
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.
Please direct your written comments
to Charles Boucher, Director/CIO,
Securities and Exchange Commission,
C/O Shirley Martinson, 6432 General
Green Way, Alexandria, VA 22312; or
send an e-mail to:
PRA_Mailbox@sec.gov.
Dated: March 5, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5298 Filed 3–11–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59527; File No. S7–05–09]
Order Granting Temporary Exemptions
Under the Securities Exchange Act of
1934 in Connection With Request on
Behalf of ICE U.S. Trust LLC Related to
Central Clearing of Credit Default
Swaps, and Request for Comments
March 6, 2009.
cprice-sewell on PRODPC61 with NOTICES
I. Introduction
In response to the recent turmoil in
the financial markets, the Securities and
Exchange Commission (‘‘Commission’’)
has taken multiple actions to protect
investors and ensure the integrity of the
nation’s securities markets.1 Today the
1 A nonexclusive list of the Commission’s actions
to stabilize financial markets during this credit
crisis include: adopting a package of measures to
strengthen investor protections against naked short
selling, including rules requiring a hard T+3 closeout, eliminating the options market maker
exception of Regulation SHO, and expressly
targeting fraud in short selling transactions (See
Securities Exchange Act Release No. 58572
(September 17, 2008), 73 FR 54875 (September 23,
2008)); issuing an emergency order to enhance
protections against naked short selling in the
securities of primary dealers, Federal National
Mortgage Association (‘‘Fannie Mae’’), and Federal
Home Loan Mortgage Corporation (‘‘Freddie Mac’’)
(See Securities Exchange Act Release No. 58166
(July 15, 2008), 73 FR 42379 (July 21, 2008)); taking
temporary emergency action to ban short selling in
financial securities (See Securities Exchange Act
Release No. 58592 (September 18, 2008), 73 FR
55169 (September 24, 2008)); approving emergency
rulemaking to ensure disclosure of short positions
by hedge funds and other institutional money
managers (See Securities Exchange Act Release No.
58591A (September 21, 2008), 73 FR 55557
(September 25, 2008)); proposing rules to
strengthen the regulation of credit rating agencies
and making the limits and purposes of credit ratings
clearer to investors (See Securities Exchange Act
Release No. 57967 (June 16, 2008), 73 FR 36212
(June 25, 2008); entering into a Memorandum of
Understanding with the Board of Governors of the
Federal Reserve System (‘‘FRB’’) to make sure key
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Commission is taking further action
designed to address concerns related to
the market in credit default swaps
(‘‘CDS’’). The over-the-counter (‘‘OTC’’)
market for CDS has been a source of
concerns to us and other financial
regulators. These concerns include the
systemic risk posed by CDS, highlighted
by the possible inability of parties to
meet their obligations as counterparties
and the potential resulting adverse
effects on other markets and the
financial system.2 Recent credit market
events have demonstrated the
seriousness of these risks in a CDS
market operating without meaningful
regulation, transparency,3 or central
counterparties (‘‘CCPs’’).4 These events
have emphasized the need for CCPs as
mechanisms to help control such risks.5
A CCP for CDS could be an important
step in reducing the counterparty risks
inherent in the CDS market, and thereby
help mitigate potential systemic
impacts. In November 2008, the
President’s Working Group on Financial
Markets stated that the implementation
of a CCP for CDS was a top priority 6
and, in furtherance of this
recommendation, the Commission, the
FRB and the Commodity Futures
Trading Commission (‘‘CFTC’’) signed a
Federal financial regulators share information and
coordinate regulatory activities in important areas
of common interest (See Memorandum of
Understanding Between the U.S. Securities and
Exchange Commission and the Board of Governors
of the Federal Reserve System Regarding
Coordination and Information Sharing in Areas of
Common Regulatory and Supervisory Interest (July
7, 2008), https://www.sec.gov/news/press/2008/
2008–134_mou.pdf).
2 In addition to the potential systemic risks that
CDS pose to financial stability, we are concerned
about other potential risks in this market, including
operational risks, risks relating to manipulation and
fraud, and regulatory arbitrage risks.
3 See Policy Objectives for the OTC Derivatives
Market, The President’s Working Group on
Financial Markets, November 14, 2008, available at
https://www.ustreas.gov/press/releases/reports/
policyobjectives.pdf (‘‘Public reporting of prices,
trading volumes and aggregate open interest should
be required to increase market transparency for
participants and the public.’’).
4 See The Role of Credit Derivatives in the U.S.
Economy Before the H. Agric. Comm., 110th Cong.
(2008) (Statement of Erik Sirri, Director of the
Division of Trading and Markets, Commission).
5 See id.
6 See Policy Objectives for the OTC Derivatives
Market, The President’s Working Group on
Financial Markets (November 14, 2008), https://
www.ustreas.gov/press/releases/reports/
policyobjectives.pdf. See also Policy Statement on
Financial Market Developments, The President’s
Working Group on Financial Markets (March 13,
2008), https://www.treas.gov/press/releases/reports/
pwgpolicystatemktturmoil_03122008.pdf; Progress
Update on March Policy Statement on Financial
Market Developments, The President’s Working
Group on Financial Markets (October 2008), https://
www.treas.gov/press/releases/reports/
q4progress%20update.pdf.
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10791
Memorandum of Understanding 7 that
establishes a framework for consultation
and information sharing on issues
related to CCPs for CDS. Given the
continued uncertainty in this market,
taking action to help foster the prompt
development of CCPs, including
granting conditional exemptions from
certain provisions of the Federal
securities laws, is in the public interest.
A CDS is a bilateral contract between
two parties, known as counterparties.
The value of this financial contract is
based on underlying obligations of a
single entity or on a particular security
or other debt obligation, or an index of
several such entities, securities, or
obligations. The obligation of a seller
under a CDS to make payments under
a CDS contract is triggered by a default
or other credit event as to such entity or
entities or such security or securities.
Investors may use CDS for a variety of
reasons, including to offset or insure
against risk in their fixed-income
portfolios, to take positions in bonds or
in segments of the debt market as
represented by an index, or to capitalize
on the volatility in credit spreads during
times of economic uncertainty. In recent
years, CDS market volumes have rapidly
increased.8 This growth has coincided
with a significant rise in the types and
number of entities participating in the
CDS market.9
The Commission’s authority over this
OTC market for CDS is limited.
Specifically, Section 3A of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) limits the
Commission’s authority over swap
agreements, as defined in Section 206A
of the Gramm-Leach-Bliley Act.10 For
7 See Memorandum of Understanding Between
the Board of Governors of the Federal Reserve
System, the U.S. Commodity Futures Trading
Commission and the U.S. Securities and Exchange
Commission Regarding Central Counterparties for
Credit Default Swaps (November 14, 2008), https://
www.treas.gov/press/releases/reports/finalmou.pdf.
8 See Semiannual OTC derivatives statistics at
end-December 2007, Bank for International
Settlements (‘‘BIS’’), available at https://
www.bis.org/statistics/otcder/dt1920a.pdf.
9 CDS were initially created to meet the demand
of banking institutions looking to hedge and
diversify the credit risk attendant with their lending
activities. However, financial institutions such as
insurance companies, pension funds, securities
firms, and hedge funds have entered the CDS
market.
10 15 U.S.C. 78c–1. Section 3A excludes both a
non-security-based and a security-based swap
agreement from the definition of ‘‘security’’ under
Section 3(a)(10) of the Exchange Act, 15 U.S.C.
78c(a)(10). Section 206A of the Gramm-Leach-Bliley
Act defines a ‘‘swap agreement’’ as ‘‘any agreement,
contract, or transaction between eligible contract
participants (as defined in section 1a(12) of the
Commodity Exchange Act * * *) * * * the
material terms of which (other than price and
quantity) are subject to individual negotiation.’’ 15
U.S.C. 78c note.
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]]>Agencies
[Federal Register Volume 74, Number 47 (Thursday, March 12, 2009)]
[Notices]
[Pages 10790-10791]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-5298]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549.
Extension:
Rule 489 and Form F-N, SEC File No. 270-361, OMB Control No.
3235-0411.
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 (the ``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:
Rule 489 (17 CFR 230.489) under the Securities Act of 1933 (15
U.S.C. 77a et seq.) requires foreign banks and foreign insurance
companies and holding companies and finance subsidiaries of foreign
banks and foreign insurance companies that are exempted from the
definition of ``investment company'' by virtue of Rules 3a-1 (17 CFR
170.3a-1), 3a-5 (17 CFR 270.3a-5), and 3a-6 (17 CFR 270.3a-6) under the
Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) to file Form
F-N (17 CFR 239.43), under the Securities Act of 1933 to appoint an
agent for service of process when making a public offering of
securities in the United States. Approximately 19 entities are required
by Rule 489 to file Form F-N, which is estimated to require an average
of one hour to complete. The estimated annual burden of complying with
the rule's filing requirement is approximately 24 hours, as some of the
entities submitted multiple filings.
The estimates of average burden hours are made solely for the
purposes of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.) and are not derived from a comprehensive or even representative
survey or study of the cost of Commission rules and forms.
Written comments are invited on: (a) Whether the 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 of 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
[[Page 10791]]
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.
Please direct your written comments to Charles Boucher, Director/
CIO, Securities and Exchange Commission, C/O Shirley Martinson, 6432
General Green Way, Alexandria, VA 22312; or send an e-mail to: PRA_
Mailbox@sec.gov.
Dated: March 5, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-5298 Filed 3-11-09; 8:45 am]
BILLING CODE 8011-01-P
