Sunshine Act Meeting, 61181-61182 [E9-28125]
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jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 74, No. 224 / Monday, November 23, 2009 / Notices
672–7640. A person filing electronically
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license amendment application, see the
application for amendment dated
December 8, 2008, which is available for
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16:37 Nov 20, 2009
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public inspection at the Commission’s
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Dated at Rockville, Maryland, this 16th day
of November 2009.
For the Nuclear Regulatory Commission.
Justin C. Poole,
Project Manager, Plant Licensing Branch III–
1, Division of Operating Reactor Licensing,
Office of Nuclear Reactor Regulation.
[FR Doc. E9–28092 Filed 11–20–09; 8:45 am]
BILLING CODE 7590–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration # 11929]
Washington Disaster # WA–00024
Declaration of Economic Injury
AGENCY: U.S. Small Business
Administration.
ACTION: Notice.
SUMMARY: This is a notice of an
Economic Injury Disaster Loan (EIDL)
declaration for the State of Washington,
dated 11/13/2009.
Incident: Yakima County SR 410
Landslide.
Incident Period: 10/10/2009.
Effective Date: 11/13/2009.
EIDL Loan Application Deadline Date:
8/13/2010.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT:
Alan Escobar, Office of Disaster
Assistance, U.S. Small Business
Administration, 409 3rd Street, SW.,
Suite 6050, Washington, DC 20416.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s EIDL declaration,
applications for economic injury
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61181
disaster loans may be filed at the
address listed above or other locally
announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Yakima.
Contiguous Counties:
Washington: Benton, Grant, King,
Kittitas, Klickitat, Lewis, Pierce,
Skamania.
The Interest Rate is: 4.000.
The number assigned to this disaster
for economic injury is 119290.
The State which received an EIDL
Declaration # is Washington.
(Catalog of Federal Domestic Assistance
Number 59002)
Dated: November 13, 2009.
Karen G. Mills,
Administrator.
[FR Doc. E9–27983 Filed 11–20–09; 8:45 am]
BILLING CODE 8025–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Monday, November 23, 2009 at 9
a.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c), (5), (7), (8), 9(B) and (10)
and 17 CFR 200.402(a)(5), (7), (8), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Walter, as duty officer,
voted to consider the item listed for the
Closed Meeting in a closed session, and
determined that no earlier notice thereof
was possible.
The subject matter of the Closed
Meeting scheduled for Monday,
November 23, 2009 will be:
Institution and settlement of injunctive
actions; and
Institution and settlement of
administrative proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
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61182
Federal Register / Vol. 74, No. 224 / Monday, November 23, 2009 / Notices
added, deleted or postponed, please
contact:
The Office of the Secretary at (202)
551–5400.
Dated: November 18, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–28125 Filed 11–19–09; 11:15
am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61006; File No. SR–OCC–
2009–15]
Self-Regulatory Organizations; The
Options Clearing Corporation; Order
Approving Proposed Rule Change To
Revise the Minimum Eligibility Criteria
for Common Stock Loaned Through
Stock Loan Programs and Deposited
as Margin Collateral
November 16, 2009.
jlentini on DSKJ8SOYB1PROD with NOTICES
I. Introduction
On August 28, 2009, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–OCC–2009–15 pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’).1 The
proposed rule change was published for
comment in the Federal Register on
October 6, 2009.2 No comment letters
were received on the proposal. This
order approves the proposal.
II. Description
The proposed rule change revises
minimum eligibility criteria applicable
to common stock loaned through OCC’s
Stock Loan Programs and deposited as
margin collateral.
OCC’s clearing services involve
common stock 3 in several ways. Stocks
are: (i) Underlying securities for
exchange-traded equity option
contracts; (ii) constituent securities of
stock indexes that underlie stock index
options or of indexes on which
underlying ETFs are based; (iii)
constituent securities of ETFs that
although are not underlying securities
are based on indexes that underlie index
options (‘‘Index Option Related ETFs’’);
(iv) the subject of stock loan or borrow
transactions cleared pursuant to OCC’s
Stock Loan Programs; and (v) deposited
1 15
U.S.C. 78s(b)(1).
Exchange Act Release No. 60743
(September 29, 2009), 74 FR 51348.
3 The term ‘‘common stock’’ or ‘‘stock’’ is broadly
used in this rule change to refer to different types
of equity securities including ETFs but not
preferred stock.
2 Securities
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16:37 Nov 20, 2009
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with OCC as margin collateral.
Rationalizing the interrelationship
among the criteria applied to stocks for
these various purposes will maximize
the potential for offsets and reduce risk
in the clearing system.
Under OCC’s Stock Loan Programs,
only loans of stocks that are either
underlying securities for options or
futures or ETFs based on a stock index
underlying an index option contract are
eligible for clearance through OCC
(collectively, ‘‘Options-Related Stocks’’).
OCC restricted stock loan activity to
limit its risk to loans supporting short
sales that might be serving as hedges for
options transactions or helping to add
liquidity to the options markets. At the
time this criterion was implemented in
2002, OCC managed the risk of stock
loan transactions for most clearing
members on a credit basis—that is OCC
did not collect margin on such
transactions. As noted above, OCC now
requires margin on all stock loan
transactions thus reducing the risk
associated with this activity.
Accordingly, OCC believes that it is no
longer necessary or appropriate to limit
stock loan transactions to OptionsRelated Stocks.
In connection with the foregoing
change, OCC is supplementing its
existing criteria for stock eligible for the
Stock Loan Programs by requiring that
in order to qualify as an ‘‘Eligible Stock’’
for purposes of the Stock Loan Programs
a stock must be a ‘‘covered security’’ as
defined in Section 18(b)(1) of the
Securities Act of 1933.4 By agreement
with the options exchanges, OCC
already requires that all underlying
stocks meet this criterion, and OCC
believes that it is an appropriate
minimum assurance of quality. In
addition, OCC is imposing a $3
minimum share price requirement that
is applicable only to stocks other than
Options-Related Stocks.5 OCC, however,
retains the ability to waive the $3
minimum price where specified other
factors suggest that the stock is
nevertheless suitable for inclusion in
the Stock Loan Programs.
4 ‘‘Covered securities’’ are securities that are
authorized for listing on the New York Stock
Exchange, the American Stock Exchange (now
known as NYSE Amex LLC), the National Market
System of the Nasdaq Stock Market (collectively,
‘‘Exchanges’’), or any other national securities
exchange, or tiers thereof, that the Commission
determines are substantially similar to the listing
standards applicable to securities on the Exchanges.
15 U.S.C. 77r(b)(1).
5 This minimum price requirement corresponds
to the minimum price standard contained in the
criteria used by the options exchanges for initial
selection of underlying securities that are also
‘‘covered securities.’’
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Common Stock as Collateral
Under current OCC Rule 604(b)(4),
clearing members can deposit common
stocks that meet the following criteria:
Minimum price of $3 per share and
traded on a national securities exchange
or traded in the Nasdaq Global Market
or the Nasdaq Capital Market. The
aggregate value of margin attributed to
a single stock cannot exceed 10% of a
clearing member’s total margin
requirement. Stocks are haircut by 30%
for margin valuation purposes. Stocks
that have been suspended from trading
by or are subject to special margin
requirements under the rules of a listing
market because of volatility, lack of
liquidity, or similar characteristics are
not eligible for deposit as margin.
Under the approved but not yet
implemented Collateral in Margins
program, any common stock that meets
the above criteria except the minimum
price requirement and that is
deliverable upon exercise or maturity of
a cleared contract (i.e., is an underlying
security), as well as index option related
ETFs, will be afforded collateral value
as determined by STANS. Moreover, the
margin concentration requirement will
be inapplicable to such deposits. Thus,
upon implementation of the Collateral
in Margins proposal, the minimum price
requirement and margin concentration
requirement will be eliminated for
common stocks that are underlying
securities or index option related ETFs.
The minimum price requirement is
being eliminated for these securities in
order to provide a greater opportunity
for members to hedge their equity
options positions with pledges of the
underlying securities. This decision also
reflects OCC’s judgment that the
minimum price requirement is less
important in the current environment
where OCC is able to closely monitor
collateral in the form of common stock
and to apply the sophisticated risk
management technique incorporated in
STANS in order to determine the
appropriate value to assign to such
collateral. The concentration test
requirement is being eliminated because
STANS contains its own built-in
functionality that adequately handles
concentrated options and collateral
holdings.
In anticipation of the implementation
of the Collateral in Margins program,
and effective with such implementation,
OCC further amends Rule 604(b)(4)(i) as
follows:
(1) Replace the requirement of listing
on a national securities exchange or
specific Nasdaq markets with the
requirement that all common stocks
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Agencies
[Federal Register Volume 74, Number 224 (Monday, November 23, 2009)]
[Notices]
[Pages 61181-61182]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-28125]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting
Notice is hereby given, pursuant to the provisions of the
Government in the Sunshine Act, Public Law 94-409, that the Securities
and Exchange Commission will hold a Closed Meeting on Monday, November
23, 2009 at 9 a.m.
Commissioners, Counsel to the Commissioners, the Secretary to the
Commission, and recording secretaries will attend the Closed Meeting.
Certain staff members who have an interest in the matters also may be
present.
The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c), (5), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(5), (7), (8), 9(ii) and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Walter, as duty officer, voted to consider the item
listed for the Closed Meeting in a closed session, and determined that
no earlier notice thereof was possible.
The subject matter of the Closed Meeting scheduled for Monday,
November 23, 2009 will be:
Institution and settlement of injunctive actions; and
Institution and settlement of administrative proceedings.
At times, changes in Commission priorities require alterations in
the scheduling of meeting items.
For further information and to ascertain what, if any, matters have
been
[[Page 61182]]
added, deleted or postponed, please contact:
The Office of the Secretary at (202) 551-5400.
Dated: November 18, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-28125 Filed 11-19-09; 11:15 am]
BILLING CODE 8011-01-P