Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Clearing Agency Operational Risk Management Framework, 105169-105170 [2024-30678]
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Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices
analysis, and conditions, please refer to
Applicants’ third amended and restated
application, dated December 9, 2024,
which may be obtained via the
Commission’s website by searching for
the file number at the top of this
document, or for an Applicant using the
Company name search field, on the
SEC’s EDGAR system. The SEC’s
EDGAR system may be searched at,
https://www.sec.gov/edgar/searchedgar/
legacy/companysearch.html. You may
also call the SEC’s Public Reference
Room at (202) 551–8090.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
BILLING CODE 8011–01–P
In its filing with the Commission, the
clearing agency 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. The
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
SECURITIES AND EXCHANGE
COMMISSION
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
For the Commission, by the Division of
Investment Management, under delegated
authority.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–30655 Filed 12–23–24; 8:45 am]
[Release No. 34–101955; File No. SR–FICC–
2024–013]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Modify the
Clearing Agency Operational Risk
Management Framework
December 18, 2024.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
11, 2024, Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the clearing agency. FICC filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(4) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
ddrumheller on DSK120RN23PROD with NOTICES1
Company (‘‘DTC,’’ and together with
NSCC and FICC, the ‘‘Clearing
Agencies’’) in order to reflect recent
changes to group names and make other
nonmaterial clarifying edits.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change consists of
amendments to the Clearing Agency
Operational Risk Management
Framework (‘‘ORM Framework’’ or
‘‘Framework’’) of FICC and its affiliates
National Securities Clearing Corporation
(‘‘NSCC’’) and The Depository Trust
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4).
2 17
19:37 Dec 23, 2024
The Clearing Agencies adopted the
ORM Framework 5 to provide an outline
for how each of the Clearing Agencies
manages its operational risks. In this
way, the Framework supports the
Clearing Agencies’ compliance with
Rule 17ad–22(e)(17) under the Act,6 as
described in the Initial Filing. In
addition to setting forth the way each of
the Clearing Agencies addresses these
requirements, the ORM Framework also
contains a section titled ‘‘Framework
Ownership and Change Management’’
that, among other matters, describes the
Framework ownership and the required
governance process for review and
approval of changes to the Framework.
In connection with the annual review
and approval of the Framework by the
Board of Directors of each of the
Clearing Agencies, the Clearing
Agencies are proposing to make certain
revisions to the Framework. Such
proposed changes would include
updating the ORM Framework to reflect
recent changes to group names and
making other nonmaterial clarifying
edits. The proposed changes are
described in greater detail below.
i. Proposed Amendments To Update
Organizational Name Changes
The Framework is owned and
managed by an officer within the
Operational Risk group within the
5 See Securities Exchange Act Release No. 81745
(Sept. 28, 2017), 82 FR 46332 (Oct. 4, 2017) (SR–
DTC–2017–014; SR–NSCC–2017–013; SR–FICC–
2017–017) (‘‘Initial Filing’’).
6 17 CFR 240.17ad–22(e)(17).
1 15
VerDate Sep<11>2014
1. Purpose
Jkt 265001
PO 00000
Frm 00205
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Sfmt 4703
105169
Group Chief Risk Office of DTCC,7 who
works with the Technology Risk
Management group within the Group
Chief Risk Office in administration of
the Framework. The Technology Risk
Management group’s name has changed
to the Cyber Security & Technology Risk
Management group. The proposed
changes to the Framework would reflect
the recent organizational name change.
ii. Proposed Changes To Make
Nonmaterial Clarifying Edits
The proposed rule change would
make additional immaterial edits to the
Framework that include (a) the removal
of a defined term not used in the
Framework and therefore unnecessary,
and (b) adding additional context in
Section 6 related to data centers. The
proposed changes to Section 6 add
context around data centers, specifically
the out-of-region centers, to allow for
greater understanding of configurations,
parameters, and limitations. This
proposed change also provides
consistency across the Clearing
Agencies disclosures. These immaterial
changes do not alter how the Clearing
Agencies comply with the applicable
requirements of Rule 17ad–22(e)(17)
under the Act.8
2. Statutory Basis
The Clearing Agencies believe that the
proposed changes are consistent with
Section 17A(b)(3)(F) of the Act 9 for the
reasons described below.
Section 17A(b)(3)(F) of the Act
requires, in part, that the rules of a
registered clearing agency be designed
to promote the prompt and accurate
clearance and settlement of securities
transactions, and to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible.10 The proposed changes to
update the ORM Framework to reflect
recent changes to group names and
making other nonmaterial clarifying
edits would update and clarify the
Framework and would make it more
comprehensive in how it describes the
methods and tools currently used by the
Clearing Agencies to manage
operational risks and therefore comply
with Section 17A(b)(3)(F) of the Act.11
By creating clearer, updated and more
comprehensive descriptions, the
Clearing Agencies believe the proposed
changes would make the ORM
7 The Depository Trust & Clearing Corporation
(‘‘DTCC’’) is the parent company of the Clearing
Agencies.
8 17 CFR 240.17ad–22(e)(17).
9 15 U.S.C. 78q–1(b)(3)(F).
10 Id.
11 Id.
E:\FR\FM\26DEN1.SGM
26DEN1
105170
Federal Register / Vol. 89, No. 247 / Thursday, December 26, 2024 / Notices
Framework more effective in providing
an overview of the important risk
management activities described
therein. Therefore, the Clearing
Agencies believe that the proposed
changes are consistent with the
requirements of Section 17A(b)(3)(F) of
the Act.12
(B) Clearing Agency’s Statement on
Burden on Competition
The Clearing Agencies do not believe
that the proposed changes to the ORM
Framework described above would have
any impact, or impose any burden, on
competition. The proposed changes
would enhance the Framework by
providing additional clarity and
accuracy concerning the Clearing
Agencies’ operational risk management
processes. The proposed changes to the
Framework would not advantage or
disadvantage any participant or user of
the Clearing Agencies’ services or
unfairly inhibit access to the Clearing
Agencies’ services. As such, the
Clearing Agencies do not believe that
the proposed rule changes would have
any impact on competition.
ddrumheller on DSK120RN23PROD with NOTICES1
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
The Clearing Agencies have not
received or solicited any written
comments relating to this proposal. If
any written comments are received, they
will be publicly filed as an Exhibit 2 to
this filing, as required by Form 19b–4
and the General Instructions thereto.
Persons submitting comments are
cautioned that, according to Section IV
(Solicitation of Comments) of the
Exhibit 1A in the General Instructions to
Form 19b–4, the Commission does not
edit personal identifying information
from comment submissions.
Commenters should submit only
information that they wish to make
available publicly, including their
name, email address, and any other
identifying information.
All prospective commenters should
follow the Commission’s instructions on
how to submit comments, available at
https://www.sec.gov/regulatory-actions/
how-to-submitcomments. General
questions regarding the rule filing
process or logistical questions regarding
this filing should be directed to the
Main Office of the Commission’s
Division of Trading and Markets at
tradingandmarkets@sec.gov or 202–
551–5777.
The Clearing Agencies reserve the
right to not respond to any comments
received.
III. Date of Effectiveness of the
Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A) 13 of the Act and paragraph
(f) 14 of Rule 19b–4 thereunder. At any
time within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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–
FICC–2024–013 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to File
Number SR–FICC–2024–013. 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 website (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 website viewing and
printing in the Commission’s Public
13 15
12 Id.
VerDate Sep<11>2014
14 17
19:37 Dec 23, 2024
Jkt 265001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00206
Fmt 4703
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of FICC and on DTCC’s website
(dtcc.com/legal/sec-rule-filings). Do not
include personal identifiable
information in submissions; you should
submit only information that you wish
to make available publicly. We may
redact in part or withhold entirely from
publication submitted material that is
obscene or subject to copyright
protection. All submissions should refer
to File Number SR–FICC–2024–013 and
should be submitted on or before
January 16, 2025.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–30678 Filed 12–23–24; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No: SSA–2024–0055]
Agency Information Collection
Activities: Proposed Request
The Social Security Administration
(SSA) publishes a list of information
collection packages requiring clearance
by the Office of Management and
Budget (OMB) in compliance with
Public Law 104–13, the Paperwork
Reduction Act of 1995, effective October
1, 1995. This notice includes one new
request, as well as extensions and
revisions of OMB-approved information
collections.
SSA is soliciting comments on the
accuracy of the agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility, and clarity; and ways to
minimize burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Mail, email, or
fax your comments and
recommendations on the information
collection(s) to the OMB Desk Officer
and SSA Reports Clearance Officer at
the following addresses or fax numbers.
(OMB) Office of Management and
Budget, Attn: Desk Officer for SSA
(SSA) Social Security Administration,
OLCA, Attn: Reports Clearance
Director, Mail Stop 3253 Altmeyer,
6401 Security Blvd., Baltimore, MD
21235, Fax: 833–410–1631, Email
15 17
Sfmt 4703
E:\FR\FM\26DEN1.SGM
CFR 200.30–3(a)(12).
26DEN1
Agencies
[Federal Register Volume 89, Number 247 (Thursday, December 26, 2024)]
[Notices]
[Pages 105169-105170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30678]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101955; File No. SR-FICC-2024-013]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Modify the Clearing Agency Operational Risk Management Framework
December 18, 2024.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 11, 2024, Fixed Income Clearing Corporation (``FICC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II and III below, which
Items have been prepared by the clearing agency. FICC filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(4) thereunder.\4\ The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change consists of amendments to the Clearing
Agency Operational Risk Management Framework (``ORM Framework'' or
``Framework'') of FICC and its affiliates National Securities Clearing
Corporation (``NSCC'') and The Depository Trust Company (``DTC,'' and
together with NSCC and FICC, the ``Clearing Agencies'') in order to
reflect recent changes to group names and make other nonmaterial
clarifying edits.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
1. Purpose
The Clearing Agencies adopted the ORM Framework \5\ to provide an
outline for how each of the Clearing Agencies manages its operational
risks. In this way, the Framework supports the Clearing Agencies'
compliance with Rule 17ad-22(e)(17) under the Act,\6\ as described in
the Initial Filing. In addition to setting forth the way each of the
Clearing Agencies addresses these requirements, the ORM Framework also
contains a section titled ``Framework Ownership and Change Management''
that, among other matters, describes the Framework ownership and the
required governance process for review and approval of changes to the
Framework.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 81745 (Sept. 28,
2017), 82 FR 46332 (Oct. 4, 2017) (SR-DTC-2017-014; SR-NSCC-2017-
013; SR-FICC-2017-017) (``Initial Filing'').
\6\ 17 CFR 240.17ad-22(e)(17).
---------------------------------------------------------------------------
In connection with the annual review and approval of the Framework
by the Board of Directors of each of the Clearing Agencies, the
Clearing Agencies are proposing to make certain revisions to the
Framework. Such proposed changes would include updating the ORM
Framework to reflect recent changes to group names and making other
nonmaterial clarifying edits. The proposed changes are described in
greater detail below.
i. Proposed Amendments To Update Organizational Name Changes
The Framework is owned and managed by an officer within the
Operational Risk group within the Group Chief Risk Office of DTCC,\7\
who works with the Technology Risk Management group within the Group
Chief Risk Office in administration of the Framework. The Technology
Risk Management group's name has changed to the Cyber Security &
Technology Risk Management group. The proposed changes to the Framework
would reflect the recent organizational name change.
---------------------------------------------------------------------------
\7\ The Depository Trust & Clearing Corporation (``DTCC'') is
the parent company of the Clearing Agencies.
---------------------------------------------------------------------------
ii. Proposed Changes To Make Nonmaterial Clarifying Edits
The proposed rule change would make additional immaterial edits to
the Framework that include (a) the removal of a defined term not used
in the Framework and therefore unnecessary, and (b) adding additional
context in Section 6 related to data centers. The proposed changes to
Section 6 add context around data centers, specifically the out-of-
region centers, to allow for greater understanding of configurations,
parameters, and limitations. This proposed change also provides
consistency across the Clearing Agencies disclosures. These immaterial
changes do not alter how the Clearing Agencies comply with the
applicable requirements of Rule 17ad-22(e)(17) under the Act.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 240.17ad-22(e)(17).
---------------------------------------------------------------------------
2. Statutory Basis
The Clearing Agencies believe that the proposed changes are
consistent with Section 17A(b)(3)(F) of the Act \9\ for the reasons
described below.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Section 17A(b)(3)(F) of the Act requires, in part, that the rules
of a registered clearing agency be designed to promote the prompt and
accurate clearance and settlement of securities transactions, and to
assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency or for which it is
responsible.\10\ The proposed changes to update the ORM Framework to
reflect recent changes to group names and making other nonmaterial
clarifying edits would update and clarify the Framework and would make
it more comprehensive in how it describes the methods and tools
currently used by the Clearing Agencies to manage operational risks and
therefore comply with Section 17A(b)(3)(F) of the Act.\11\ By creating
clearer, updated and more comprehensive descriptions, the Clearing
Agencies believe the proposed changes would make the ORM
[[Page 105170]]
Framework more effective in providing an overview of the important risk
management activities described therein. Therefore, the Clearing
Agencies believe that the proposed changes are consistent with the
requirements of Section 17A(b)(3)(F) of the Act.\12\
---------------------------------------------------------------------------
\10\ Id.
\11\ Id.
\12\ Id.
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
The Clearing Agencies do not believe that the proposed changes to
the ORM Framework described above would have any impact, or impose any
burden, on competition. The proposed changes would enhance the
Framework by providing additional clarity and accuracy concerning the
Clearing Agencies' operational risk management processes. The proposed
changes to the Framework would not advantage or disadvantage any
participant or user of the Clearing Agencies' services or unfairly
inhibit access to the Clearing Agencies' services. As such, the
Clearing Agencies do not believe that the proposed rule changes would
have any impact on competition.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
The Clearing Agencies have not received or solicited any written
comments relating to this proposal. If any written comments are
received, they will be publicly filed as an Exhibit 2 to this filing,
as required by Form 19b-4 and the General Instructions thereto.
Persons submitting comments are cautioned that, according to
Section IV (Solicitation of Comments) of the Exhibit 1A in the General
Instructions to Form 19b-4, the Commission does not edit personal
identifying information from comment submissions. Commenters should
submit only information that they wish to make available publicly,
including their name, email address, and any other identifying
information.
All prospective commenters should follow the Commission's
instructions on how to submit comments, available at https://www.sec.gov/regulatory-actions/how-to-submitcomments. General questions
regarding the rule filing process or logistical questions regarding
this filing should be directed to the Main Office of the Commission's
Division of Trading and Markets at [email protected] or 202-
551-5777.
The Clearing Agencies reserve the right to not respond to any
comments received.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \13\ of the Act and paragraph (f) \14\ of Rule 19b-4
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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 [email protected]. Please include
File Number SR-FICC-2024-013 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to File Number SR-FICC-2024-013. 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 website (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 website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549 on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of FICC and on
DTCC's website (dtcc.com/legal/sec-rule-filings). Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to File Number SR-FICC-2024-013 and should be submitted on
or before January 16, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-30678 Filed 12-23-24; 8:45 am]
BILLING CODE 8011-01-P