Self-Regulatory Organizations; The Options Clearing Corporation; Notice of No Objection To Advance Notice Filing Concerning the Governance Committee Charter, 4796-4798 [2014-01660]
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Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Notices
than ‘‘any member’’) reduces the burden
on members to report to FINRA items of
information that FINRA does not believe
are necessary. The current requirement
to obtain information regarding the
acquisition of the issuer’s unregistered
equity securities by any member
regardless of whether the member is
participating in the offering may
facilitate filing when members are
moving in and out of a syndicate or
selling group prior to an offering.
Information regarding members that are
not participating in the offering,
however, is not useful for purposes of
the rule’s compensation limits and other
requirements. Accordingly, the burden
of acquiring this unnecessary
information is not justified by a
regulatory benefit.
Finally, in proposing amendments to
the scope of the definition of ‘‘control’’
in Rule 5121(f)(6), as discussed above,
FINRA believes that ownership of 10
percent or more of the outstanding
subordinated debt of an entity should be
excluded from the scope of the
definition of ‘‘control’’ because it is not
a meaningful measure of control or
affiliation between a member and an
issuer for purposes of Rules 5121 and
5110 and, thus, eliminating this aspect
of the definition would reduce the
information required to be reported to
FINRA by members without reducing
the rule’s efficacy, consistent with the
purposes of the Act.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. As discussed
above, the proposal makes simplifying
and streamlining amendments to Rules
5110 and 5121 and would reduce the
burden of compliance. The proposed
amendments also would provide these
benefits to any affected members
engaging in activity subject to Rules
5110 and 5121.
tkelley on DSK3SPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
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16:05 Jan 28, 2014
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longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) by order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
Number SR–FINRA–2014–003, and
should be submitted on or before
February 19, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2014–01656 Filed 1–28–14; 8:45 am]
BILLING CODE 8011–01–P
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 Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml ); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
FINRA–2014–003 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–FINRA–2014–003. 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 Web site
(https://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 Web site viewing and
printing in the Commission’s Public
Reference Room 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 offices of
FINRA. All comments received will be
posted without change; the Commission
does not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71376; File No. SR–OCC–
2013–807]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of No Objection To Advance Notice
Filing Concerning the Governance
Committee Charter
January 23, 2014.
On November 26, 2013, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) advance
notice SR–OCC–2013–807 (‘‘Advance
Notice’’) pursuant to Section 806(e)(1) of
the Payment, Clearing, and Settlement
Supervision Act of 2010 (‘‘Clearing
Supervision Act’’ or ‘‘Title VIII’’) 1 and
Rule 19b–4(n)(1)(i) under the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’).2 The Advance Notice was
published for comment in the Federal
Register on December 20, 2013.3 The
Commission did not receive any
comments on the Advance Notice
publication. This publication serves as a
notice of no objection to the Advance
Notice.
I. Description of the Advance Notice
This advance notice concerns the
Board of Director’s (‘‘Board’’) formation
of a Governance Committee (‘‘GC’’) and
its approval of the GC Charter. As set
forth in the GC Charter, the purpose of
the GC is to review the overall corporate
governance of OCC and recommend
improvements to OCC’s Board. The GC
Charter describes the role the GC plays
9 17
CFR 200.30–3(a)(12).
U.S.C. 5465(e)(1).
2 17 CFR 240.19b–4(n)(1)(i). OCC is a designated
financial market utility and is required to file
advance notices with the Commission. See 12
U.S.C. 5465(e). OCC also filed the proposal in this
Advance Notice as a proposed rule change under
Section 19(b)(1) of the Exchange Act and Rule 19b–
4 thereunder, which was published for comment in
the Federal Register on December 16, 2013. 15
U.S.C. 78s(b)(1); 17 CFR 240.19b–4. See Release No.
34–71030 (Dec. 11, 2013), 78 FR 76182 (Dec. 16,
2013) (SR–OCC–2013–18).
3 Release No. 34–71803 (Dec. 16, 2013), 78 FR
77181 (Dec. 20, 2013) (SR–OCC–2013–807)
(‘‘Notice’’).
1 12
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Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Notices
in assisting the Board in fulfilling its
responsibilities, as described in OCC’s
By-Laws and Rules, as well as
specifying the policies and procedures
governing the membership and
organization, scope of authority, and
specific functions and responsibilities of
the GC. In addition, the guidelines for
the composition of the GC as well as the
policies regarding its meeting schedule,
quorum rules, minute-keeping and
reporting requirements are set forth in
the GC Charter and conform to
applicable requirements specified in
OCC’s By-Laws and Rules.
The GC is composed of not fewer than
five Directors with at least one Public
Director, one Exchange Director and one
Member Director. Management Directors
will not be members of the GC. The
Board will designate a GC Chair and if
the Chair is not present at a meeting, the
members who are present will designate
a member to serve as the Acting Chair.
The GC will meet at least four times a
year and a majority of the GC members
constitutes a quorum. The GC is
permitted to call executive sessions
from which guests of the GC may be
excluded, and GC members are
permitted to participate in all meetings
by conference telephone call or other
means of communication that permit all
meeting participants to hear each other.
The GC Chair, or the Chair’s designee,
will report regularly to the Board on the
GC’s activities.
The GC Charter sets forth certain
functions and responsibilities for the GC
including, but not limited to, the
following: Review the composition of
the Board as a whole, including the
Board’s balance of participant and nonparticipant directors, business
specialization, technical skills, diversity
and other desired qualifications; review
the Board’s Charter for consistency with
regulatory requirements, transparency of
the governance process and other sound
governance practice and recommend
changes to the Board, where
appropriate; review the committee
structure of the Board, including the GC,
and recommend changes to the Board,
where appropriate; review OCC’s
policies and procedures for identifying
and reviewing Board nominee
candidates, including the criteria for
Board nominees; develop and
recommend to the Board a periodic
process of self-evaluation of the role and
performance of the Board, its
committees and management in the
governance of OCC; review OCC’s
policies on conflicts of interest of
directors, including the OCC Directors
Code of Conduct and recommend
changes, where appropriate; and, review
OCC’s new director orientation program
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16:05 Jan 28, 2014
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as well as OCC’s training and education
programs for Board members and
recommend changes, where appropriate.
In addition to the foregoing, the GC may
undertake other and different activities,
as appropriate, or as may be delegated
to it by the Board. In discharging its
role, the GC shall confer with
management and other employees of
OCC to the extent the GC deems it
necessary to do so to fulfill its duties.4
II. Discussion and Commission
Findings
Although Title VIII does not specify a
standard of review for an advance
notice, the Commission believes that the
stated purpose of Title VIII is
instructive.5 The stated purpose of Title
VIII is to mitigate systemic risk in the
financial system and promote financial
stability by, among other things,
promoting uniform risk management
standards for systemically-important
financial market utilities (‘‘FMUs’’) and
strengthening the liquidity of
systemically important FMUs.6
Section 805(a)(2) of the Clearing
Supervision Act 7 authorizes the
Commission to prescribe risk
management standards for the payment,
clearing, and settlement activities of
designated clearing entities and
financial institutions engaged in
designated activities for which it is the
supervisory agency or the appropriate
financial regulator. Section 805(b) of the
Clearing Supervision Act 8 states that
the objectives and principles for the risk
management standards prescribed under
Section 805(a) shall be to:
• Promote robust risk management;
• Promote safety and soundness;
• Reduce systemic risks; and
• Support the stability of the broader
financial system.
The Commission has adopted risk
management standards under Section
805(a)(2) of the Clearing Supervision
Act 9 (‘‘Clearing Agency Standards’’).10
The Clearing Agency Standards became
effective on January 2, 2013 and require
registered clearing agencies that perform
central counterparty (‘‘CCP’’) services to
establish, implement, maintain, and
enforce written policies and procedures
4 The
GC, subject to the approval of the Board, is
permitted to hire specialists or rely on outside
advisors or specialists to assist it in carrying out the
GC’s activities. The GC has the authority to approve
the fees and retention terms of such advisors and
specialists.
5 See 12 U.S.C. 5461(b).
6 Id.
7 12 U.S.C. 5464(a)(2).
8 12 U.S.C. 5464(b).
9 12 U.S.C. 5464(a)(2).
10 Rule 17Ad–22, 17 CFR 240.17Ad–22. Exchange
Act Release No. 68080 (October 22, 2012), 77 FR
66220 (November 2, 2012) (S7–08–11).
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4797
that are reasonably designed to meet
certain minimum requirements for their
operations and risk management
practices on an ongoing basis.11 As
such, it is appropriate for the
Commission to review advance notices
against these Clearing Agency Standards
and the objectives and principles of
these risk management standards as
described in Section 805(b) of the
Clearing Supervision Act.12
OCC’s GC, as described above, is
tasked with reviewing the overall
corporate governance of OCC and
making recommendations to the Board
for improvements. Consistent with
Section 805(b) of the Clearing
Supervision Act,13 the Commission
believes that OCC’s GC should help
promote robust risk management and
mitigate systemic risk by enhancing the
transparency of OCC’s governance
arrangements and providing a vehicle
for the review of OCC’s governance
structure, policies and overall
effectiveness and efficiency.
Commission Rule 17Ad–22(d)(8),14
adopted as part of the Clearing Agency
Standards,15 requires that a registered
clearing agency establish, implement,
maintain, and enforce written policies
and procedures reasonably designed to
’’have governance arrangements that are
clear and transparent to fulfill the
public interest requirements in Section
17A of the Act applicable to clearing
agencies, to support the objectives of
owners and participants, and to promote
the effectiveness of the clearing agency’s
risk management procedures.’’ The
Commission believes that the GC’s
review of OCC’s governance structure
and any related recommendations that
clarify OCC’s governance structure or
further define governance
responsibilities may help OCC fulfill
these requirements. Moreover, the
Commission believes that the GC may
also aid in identifying any risks and
inefficiencies in the current governance
structure and making recommendations
to the full Board to help mitigate those
11 The Clearing Agency Standards are
substantially similar to the risk management
standards established by the Board of Governors of
the Federal Reserve System (‘‘Federal Reserve’’)
governing the operations of designated DFMUs that
are not clearing entities and financial institutions
engaged in designated activities for which the
Commission or the Commodity Futures Trading
Commission is the Supervisory Agency. See
Financial Market Utilities, 77 FR 45907 (August 2,
2012).
12 12 U.S.C. 5464(b).
13 See 12 U.S.C. 5464(b).
14 17 CFR 240.17Ad–22(d)(8).
15 See supra note 10. Release No. 34–68080 (Oct.
22, 2012), 77 FR 66219 (November 2, 2012).
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Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Notices
By the Commission.
Jill M. Peterson,
Assistant Secretary.
risks and eliminate any such
inefficiencies.
III. Conclusion
[FR Doc. 2014–01836 Filed 1–27–14; 11:15 am]
It is therefore noticed, pursuant to
Section 806(e)(1)(I) of the Clearing
Supervision Act,16 that the Commission
does not object to advance notice
proposal (SR–OCC–2013–807) and that
OCC is authorized to implement the
proposal as of the date of this notice or
the date of an order by the Commission
approving a proposed rule change that
reflects rule changes that are consistent
with this advance notice proposal (SR–
OCC–2013–18), whichever is later.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2014–01660 Filed 1–28–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[File No. 500–1]
Olie, Inc. and Hi Score Corp.; Order of
Suspension of Trading
tkelley on DSK3SPTVN1PROD with NOTICES
January 27, 2014.
U.S.C. 5465(e)(1)(I).
VerDate Mar<15>2010
16:05 Jan 28, 2014
SMALL BUSINESS ADMINISTRATION
Surrender of License of Small
Business Investment Company
Pursuant to the authority granted to
the United States Small Business
Administration under the Small
Business Investment Act of 1958, under
Section 309 of the Act and Section
107.1900 of the Small Business
Administration Rules and Regulations
(13 CFR 107.1900) to function as a small
business investment company under the
Small Business Investment Company
License No. 06/06–0312 issued to Retail
and Restaurant Growth Capital, L.P.,
said license is hereby declared null and
void.
Dated: January 16, 2014.
Javier E. Saade,
Associate Administrator for Investment,
United States Small Business Administration.
[FR Doc. 2014–01720 Filed 1–28–14; 8:45 am]
BILLING CODE 8025–01–P
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Olie, Inc.
and Hi Score Corp. There are questions
regarding the accuracy of publicly
available information about both
companies’ assets, acquisitions,
business activities, control persons,
securities offerings, and financing
arrangements. Olie, Inc. is a Delaware
corporation with its principal place of
business in Vancouver, Canada. Olie,
Inc.’s common stock is quoted on OTC
Link operated by OTC Markets Group
Inc. (‘‘OTC Link’’) under the ticker
symbol OLIE. Hi Score Corp. is a Florida
corporation with its principal place of
business in Sunrise, Florida. Hi Score
Corp.’s common stock is quoted on OTC
Link under the ticker symbol HSCO.
The Commission is of the opinion that
the public interest and the protection of
investors require a suspension of trading
in the securities of the above-listed
companies.
Therefore, it is ordered, pursuant to
Section 12(k) of the Securities Exchange
Act of 1934, that trading in the
securities of the above-listed companies
is suspended for the period from 9:30
a.m. EST on January 27, 2014, through
11:59 p.m. EST on February 7, 2014.
16 12
BILLING CODE 8011–01–P
Jkt 232001
DEPARTMENT OF STATE
[Public Notice 8612]
60-Day Notice of Proposed Information
Collection: Electronic Application for
Immigration Visa and Alien
Registration
Notice of request for public
comment.
ACTION:
The Department of State is
seeking Office of Management and
Budget (OMB) approval for the
information collection described below.
In accordance with the Paperwork
Reduction Act of 1995, we are
requesting comments on this collection
from all interested individuals and
organizations. The purpose of this
notice is to allow 60 days for public
comment preceding submission of the
collection to OMB.
DATES(S): The Department will accept
comments from the public up to March
31, 2014.
ADDRESSES: You may submit comments
by any of the following methods:
• Web: Persons with access to the
Internet may use the Federal Docket
Management System (FDMS) to
comment on this notice by going to
www.Regulations.gov. You can search
for the document by entering ‘‘Public
SUMMARY:
PO 00000
Frm 00144
Fmt 4703
Sfmt 4703
Notice 8612’’ in the Search bar. If
necessary, use the Narrow by Agency
filter option on the Results page.
• Email: PRA_BurdenComments@
state.gov.
You must include the DS form
number (if applicable), information
collection title, and the OMB control
number in any correspondence.
FOR FURTHER INFORMATION CONTACT:
Direct requests for additional
information regarding the collection
listed in this notice, including requests
for copies of the proposed collection
instrument and supporting documents,
to Sydney Taylor at PRA_
BurdenComments@state.gov.
SUPPLEMENTARY INFORMATION:
• Title of Information Collection:
Electronic Application for Immigration
and Alien Registration.
• OMB Control Number: DS–260.
• Type of Request: Revision of a
Currently Approved Collection.
• Originating Office: CA/VO/L/R.
• Form Number: DS–260.
• Respondents: Immigrant Visa
Applicants.
• Estimated Number of Respondents:
645,000.
• Estimated Number of Responses:
645,000.
• Average Time per Response: 2
hours.
• Total Estimated Burden Time:
1,290,000 hours.
• Frequency: Once per Respondent.
• Obligation to Respond: Required to
Obtain Benefits.
We are soliciting public comments to
permit the Department to:
• Evaluate whether the proposed
information collection is necessary for
the proper functions of the Department.
• Evaluate the accuracy of our
estimate of the time and cost burden for
this proposed collection, including the
validity of the methodology and
assumptions used.
• Enhance the quality, utility, and
clarity of the information to be
collected.
• Minimize the reporting burden on
those who are to respond, including the
use of automated collection techniques
or other forms of information
technology.
Please note that comments submitted
in response to this Notice are public
record. Before including any detailed
personal information, you should be
aware that your comments as submitted,
including your personal information,
will be available for public review.
Abstract of proposed collection: Form
DS–260 will be used to elicit
information to determine the eligibility
of aliens applying for immigrant visas.
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]]>Agencies
[Federal Register Volume 79, Number 19 (Wednesday, January 29, 2014)]
[Notices]
[Pages 4796-4798]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-01660]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71376; File No. SR-OCC-2013-807]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of No Objection To Advance Notice Filing Concerning the
Governance Committee Charter
January 23, 2014.
On November 26, 2013, The Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'')
advance notice SR-OCC-2013-807 (``Advance Notice'') pursuant to Section
806(e)(1) of the Payment, Clearing, and Settlement Supervision Act of
2010 (``Clearing Supervision Act'' or ``Title VIII'') \1\ and Rule 19b-
4(n)(1)(i) under the Securities Exchange Act of 1934 (``Exchange
Act'').\2\ The Advance Notice was published for comment in the Federal
Register on December 20, 2013.\3\ The Commission did not receive any
comments on the Advance Notice publication. This publication serves as
a notice of no objection to the Advance Notice.
---------------------------------------------------------------------------
\1\ 12 U.S.C. 5465(e)(1).
\2\ 17 CFR 240.19b-4(n)(1)(i). OCC is a designated financial
market utility and is required to file advance notices with the
Commission. See 12 U.S.C. 5465(e). OCC also filed the proposal in
this Advance Notice as a proposed rule change under Section 19(b)(1)
of the Exchange Act and Rule 19b-4 thereunder, which was published
for comment in the Federal Register on December 16, 2013. 15 U.S.C.
78s(b)(1); 17 CFR 240.19b-4. See Release No. 34-71030 (Dec. 11,
2013), 78 FR 76182 (Dec. 16, 2013) (SR-OCC-2013-18).
\3\ Release No. 34-71803 (Dec. 16, 2013), 78 FR 77181 (Dec. 20,
2013) (SR-OCC-2013-807) (``Notice'').
---------------------------------------------------------------------------
I. Description of the Advance Notice
This advance notice concerns the Board of Director's (``Board'')
formation of a Governance Committee (``GC'') and its approval of the GC
Charter. As set forth in the GC Charter, the purpose of the GC is to
review the overall corporate governance of OCC and recommend
improvements to OCC's Board. The GC Charter describes the role the GC
plays
[[Page 4797]]
in assisting the Board in fulfilling its responsibilities, as described
in OCC's By-Laws and Rules, as well as specifying the policies and
procedures governing the membership and organization, scope of
authority, and specific functions and responsibilities of the GC. In
addition, the guidelines for the composition of the GC as well as the
policies regarding its meeting schedule, quorum rules, minute-keeping
and reporting requirements are set forth in the GC Charter and conform
to applicable requirements specified in OCC's By-Laws and Rules.
The GC is composed of not fewer than five Directors with at least
one Public Director, one Exchange Director and one Member Director.
Management Directors will not be members of the GC. The Board will
designate a GC Chair and if the Chair is not present at a meeting, the
members who are present will designate a member to serve as the Acting
Chair. The GC will meet at least four times a year and a majority of
the GC members constitutes a quorum. The GC is permitted to call
executive sessions from which guests of the GC may be excluded, and GC
members are permitted to participate in all meetings by conference
telephone call or other means of communication that permit all meeting
participants to hear each other. The GC Chair, or the Chair's designee,
will report regularly to the Board on the GC's activities.
The GC Charter sets forth certain functions and responsibilities
for the GC including, but not limited to, the following: Review the
composition of the Board as a whole, including the Board's balance of
participant and non-participant directors, business specialization,
technical skills, diversity and other desired qualifications; review
the Board's Charter for consistency with regulatory requirements,
transparency of the governance process and other sound governance
practice and recommend changes to the Board, where appropriate; review
the committee structure of the Board, including the GC, and recommend
changes to the Board, where appropriate; review OCC's policies and
procedures for identifying and reviewing Board nominee candidates,
including the criteria for Board nominees; develop and recommend to the
Board a periodic process of self-evaluation of the role and performance
of the Board, its committees and management in the governance of OCC;
review OCC's policies on conflicts of interest of directors, including
the OCC Directors Code of Conduct and recommend changes, where
appropriate; and, review OCC's new director orientation program as well
as OCC's training and education programs for Board members and
recommend changes, where appropriate. In addition to the foregoing, the
GC may undertake other and different activities, as appropriate, or as
may be delegated to it by the Board. In discharging its role, the GC
shall confer with management and other employees of OCC to the extent
the GC deems it necessary to do so to fulfill its duties.\4\
---------------------------------------------------------------------------
\4\ The GC, subject to the approval of the Board, is permitted
to hire specialists or rely on outside advisors or specialists to
assist it in carrying out the GC's activities. The GC has the
authority to approve the fees and retention terms of such advisors
and specialists.
---------------------------------------------------------------------------
II. Discussion and Commission Findings
Although Title VIII does not specify a standard of review for an
advance notice, the Commission believes that the stated purpose of
Title VIII is instructive.\5\ The stated purpose of Title VIII is to
mitigate systemic risk in the financial system and promote financial
stability by, among other things, promoting uniform risk management
standards for systemically-important financial market utilities
(``FMUs'') and strengthening the liquidity of systemically important
FMUs.\6\
---------------------------------------------------------------------------
\5\ See 12 U.S.C. 5461(b).
\6\ Id.
---------------------------------------------------------------------------
Section 805(a)(2) of the Clearing Supervision Act \7\ authorizes
the Commission to prescribe risk management standards for the payment,
clearing, and settlement activities of designated clearing entities and
financial institutions engaged in designated activities for which it is
the supervisory agency or the appropriate financial regulator. Section
805(b) of the Clearing Supervision Act \8\ states that the objectives
and principles for the risk management standards prescribed under
Section 805(a) shall be to:
---------------------------------------------------------------------------
\7\ 12 U.S.C. 5464(a)(2).
\8\ 12 U.S.C. 5464(b).
---------------------------------------------------------------------------
Promote robust risk management;
Promote safety and soundness;
Reduce systemic risks; and
Support the stability of the broader financial system.
The Commission has adopted risk management standards under Section
805(a)(2) of the Clearing Supervision Act \9\ (``Clearing Agency
Standards'').\10\ The Clearing Agency Standards became effective on
January 2, 2013 and require registered clearing agencies that perform
central counterparty (``CCP'') services to establish, implement,
maintain, and enforce written policies and procedures that are
reasonably designed to meet certain minimum requirements for their
operations and risk management practices on an ongoing basis.\11\ As
such, it is appropriate for the Commission to review advance notices
against these Clearing Agency Standards and the objectives and
principles of these risk management standards as described in Section
805(b) of the Clearing Supervision Act.\12\
---------------------------------------------------------------------------
\9\ 12 U.S.C. 5464(a)(2).
\10\ Rule 17Ad-22, 17 CFR 240.17Ad-22. Exchange Act Release No.
68080 (October 22, 2012), 77 FR 66220 (November 2, 2012) (S7-08-11).
\11\ The Clearing Agency Standards are substantially similar to
the risk management standards established by the Board of Governors
of the Federal Reserve System (``Federal Reserve'') governing the
operations of designated DFMUs that are not clearing entities and
financial institutions engaged in designated activities for which
the Commission or the Commodity Futures Trading Commission is the
Supervisory Agency. See Financial Market Utilities, 77 FR 45907
(August 2, 2012).
\12\ 12 U.S.C. 5464(b).
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OCC's GC, as described above, is tasked with reviewing the overall
corporate governance of OCC and making recommendations to the Board for
improvements. Consistent with Section 805(b) of the Clearing
Supervision Act,\13\ the Commission believes that OCC's GC should help
promote robust risk management and mitigate systemic risk by enhancing
the transparency of OCC's governance arrangements and providing a
vehicle for the review of OCC's governance structure, policies and
overall effectiveness and efficiency.
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\13\ See 12 U.S.C. 5464(b).
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Commission Rule 17Ad-22(d)(8),\14\ adopted as part of the Clearing
Agency Standards,\15\ requires that a registered clearing agency
establish, implement, maintain, and enforce written policies and
procedures reasonably designed to ''have governance arrangements that
are clear and transparent to fulfill the public interest requirements
in Section 17A of the Act applicable to clearing agencies, to support
the objectives of owners and participants, and to promote the
effectiveness of the clearing agency's risk management procedures.''
The Commission believes that the GC's review of OCC's governance
structure and any related recommendations that clarify OCC's governance
structure or further define governance responsibilities may help OCC
fulfill these requirements. Moreover, the Commission believes that the
GC may also aid in identifying any risks and inefficiencies in the
current governance structure and making recommendations to the full
Board to help mitigate those
[[Page 4798]]
risks and eliminate any such inefficiencies.
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\14\ 17 CFR 240.17Ad-22(d)(8).
\15\ See supra note 10. Release No. 34-68080 (Oct. 22, 2012), 77
FR 66219 (November 2, 2012).
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III. Conclusion
It is therefore noticed, pursuant to Section 806(e)(1)(I) of the
Clearing Supervision Act,\16\ that the Commission does not object to
advance notice proposal (SR-OCC-2013-807) and that OCC is authorized to
implement the proposal as of the date of this notice or the date of an
order by the Commission approving a proposed rule change that reflects
rule changes that are consistent with this advance notice proposal (SR-
OCC-2013-18), whichever is later.
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\16\ 12 U.S.C. 5465(e)(1)(I).
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2014-01660 Filed 1-28-14; 8:45 am]
BILLING CODE 8011-01-P
