Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Notices 1819 

51 17 CFR 200.30–3(a)(91). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3OCC’s By-Laws and Rules can be found on 

OCC’s website: https://www.theocc.com/CompanyInformation/Documents-and-Archives/By-Lawsand-Rules. 

concerning loss allocation in the 

extremely unlikely event that the failure 

or disruption of a non-bank investment 

counterparty results in a loss to OCC 

arising from the investment of Clearing 

Member Cash. The expansion of existing 

authority to allocate such losses 

attributable to a non-bank investment 

counterparty helps establish a more 

transparent and clear loss allocation 

process and ensure OCC’s authority to 

take action to contain losses and 

continue to meet its clearance and 

settlement obligations. Accordingly, 

OCC believes the proposed changes to 

OCC’s Rules are consistent with Rule 

17Ad–22(e)(13). 

III. Date of Effectiveness of the Advance 

Notice and Timing for Commission 

Action 

The proposed change may be 

implemented if the Commission does 

not object to the proposed change 

within 60 days of the later of (i) the date 

the proposed change was filed with the 

Commission or (ii) the date any 

additional information requested by the 

Commission is received. OCC shall not 

implement the proposed change if the 

Commission has any objection to the 

proposed change. 

The Commission may extend the 

period for review by an additional 60 

days if the proposed change raises novel 

or complex issues, subject to the 

Commission providing the clearing 

agency with prompt written notice of 

the extension. A proposed change may 

be implemented in less than 60 days 

from the date the advance notice is 

filed, or the date further information 

requested by the Commission is 

received, if the Commission notifies the 

clearing agency in writing that it does 

not object to the proposed change and 

authorizes the clearing agency to 

implement the proposed change on an 

earlier date, subject to any conditions 

imposed by the Commission. 

OCC shall post notice on its website 

of proposed changes that are 

implemented. The proposal shall not 

take effect until all regulatory actions 

required with respect to the proposal are 

completed. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the advance notice is 

consistent with the Clearing 

Supervision Act. Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

OCC–2021–803 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–OCC–2021–803. 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 (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the advance notice that 

are filed with the Commission, and all 

written communications relating to the 

advance notice 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 the self-regulatory organization. 

All comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal identifying 

information from comment submissions. 

You should submit only information 

that you wish to make available 

publicly. 

All submissions should refer to File 

Number SR–OCC–2021–803 and should 

be submitted on or before February 2, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.51

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–00377 Filed 1–11–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93916; File No. SR–OCC– 

2021–014] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Concerning the Options Clearing 

Corporation’s Cash and Investment 

Management 

January 6, 2022. 

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 December 23, 2021, the 

Options Clearing Corporation (‘‘OCC’’) 

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 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 (1) 

formalize OCC’s policy for safeguarding 

cash and related investments and (2) 

amend OCC’s Rules governing use of the 

Clearing Fund in the event of the failure 

of a bank to meet a settlement obligation 

with OCC to ensure such access extends 

to the failure of an investment 

counterparty with whom OCC has 

invested cash deposited by Clearing 

Members in respect of margin or 

Clearing Fund requirements under the 

conditions identified in OCC Rule 

1006(c) and (f), regardless of whether 

the investment counterparty is a bank. 

The Cash and Investment Management 

Policy is included in confidential 

Exhibit 5a of File Number SR–OCC– 

2021–014. Proposed amendments to 

OCC’s Rules are included in Exhibit 5b 

of File Number SR–OCC–2021–014. 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 


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1820 Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Notices 

4See By-Law Art. IX, Sec. 1. 5See OCC Rule 604(a); Rule 1006(c). 

6See OCC Rule 1006(f). As discussed, infra, this 

proposed rule change would amend this clause to 

apply when OCC reasonably believes it necessary 

to meet its liquidity needs for ‘‘daily settlement’’ as 

a result of the failure of any bank ‘‘to perform any 

obligation to the Corporation when due.’’ 

7OCC amended its Rules in 2018 to extend access 

to the Clearing Fund in the extraordinary event that 

OCC faces a liquidity need in order to complete 

same-day settlement for reasons other than a bank 

or clearing organization’s bankruptcy, insolvency, 

receivership, suspension of operations, or any 

similar event. See Securities Exchange Act 

(‘‘Exchange Act’’) Release No. 82309 (Dec. 13, 

2017), 82 FR 60262 (Dec. 19, 2017) (File No. SR– 

OCC–2017–017). 

8See OCC Rule 1006(c)(ii). 

9See OCC Rule 1006(c)(i). 

10OCC’s Capital Management Policy defines 

‘‘liquid net assets funded by equity’’ to be the level 

of cash or cash equivalents, no greater than OCC’s 

shareholders’ equity, less any approved adjustments 

(e.g., agency-related liabilities such as Section 31 

fees held by OCC and the Minimum Corporate 

Contribution). See Exchange Act Release No. 91199 

(Feb. 24, 2021), 86 FR 12237, 12241 (Mar. 2, 2021) 

(File No. SR–OCC–2021–003). 

11See OCC Rule 1006(e)(ii). 

12 15 U.S.C. 78s(b)(1). 

13 17 CFR 240.19b–4. 

14See Exchange Act Release No. 88029 (Jan. 24, 

2020), 85 FR 5500, 5501–02 (Jan. 30, 2020) (File No. 

SR–OCC–2019–007) (discussing the determination 

of Target Capital Requirement under OCC’s Capital 

Management Policy). 

15Working capital lines of credit, if any, are 

separate from the syndicated credit facility and 

liquidity facilities that OCC maintains to cover 

default losses or liquidity shortfalls. See Exchange 

Act Release No. 88971 (May 28, 2020), 85 FR 34257 

(June 3, 2020) (File No. SR–OCC–2020–804) 

(discussing OCC’s revolving credit facility); 

Exchange Act Release No. 89039 (June 10, 2020), 85 

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 

(1) Purpose 

OCC is proposing to enhance its cash 

and investment management practices 

by: (1) Formalizing OCC’s policy for 

safeguarding cash and related 

investments, and (2) amending OCC’s 

Rules to ensure access to the Clearing 

Fund if a non-bank investment 

counterparty fails to return Clearing 

Member cash deposited in respect of 

margin or Clearing Fund requirements 

under the conditions identified in OCC 

Rule 1006(c) and (f). 

Background 

OCC’s By-Laws and Rules govern the 

management and investment of OCC’s 

own funds and cash deposited by 

Clearing Members. With respect to 

OCC’s own funds (other than Clearing 

Fund deposits), Article IX, Section 1 of 

OCC’s By-Laws provides that funds in 

excess of the amount needed as working 

capital may be invested by the Board in 

Government securities or such other 

securities or financial instruments as the 

Board or a Board-level committee may 

from time to time approve.4 With 

respect to cash deposited by Clearing 

Members, OCC Rules 604(a) and 1002(c) 

provide that cash deposited in respect of 

a Clearing Member’s margin 

requirements or Clearing Fund 

contributions may from time to time be 

partially or wholly invested by OCC for 

its account in Government securities.5

OCC does not propose to amend these 

By-Laws or Rules by this proposed rule 

change. 

OCC’s investments historically have 

been limited to overnight transactions 

under deliver-versus-payment (‘‘DVP’’) 

reverse repurchase agreements. As 

collateral, the investment counterparty 

deliveries Government securities equal 

to 102% of the cash invested at the time 

the investment is made. Such 

investments reduce OCC’s investment 

risks by permitting quick liquidation 

with little adverse price effect and 

controlling the movement of OCC’s 

assets via a custodian bank. To 

minimize counterparty risk, OCC 

restricts its potential counterparties to 

financial institutions that meet certain 

standards of size, capital adequacy, 

product offering and operational 

capacity. 

In the event of a failure or disruption 

of an investment counterparty that is a 

bank, OCC’s Rules provide OCC with 

authority to access the Clearing Fund to 

address liquidity shortfalls, including 

shortfalls arising from the investment of 

Clearing Member cash in Government 

securities. Specifically, OCC Rule 

1006(f) authorizes OCC to take 

possession of cash or securities 

deposited by Clearing Members in 

respect of the Clearing Fund when OCC 

reasonably believes it necessary to meet 

its liquidity needs for same-day 

settlement as a result of the failure of 

any bank to achieve daily settlement 

with OCC.6 In the extremely unlikely 

event that a bank investment 

counterparty failed to return the cash 

versus return of the Government 

securities to unwind a transaction under 

a reverse repurchase agreement—e.g., 

because of a systems disruption, 

operational outage, or otherwise—OCC 

could exercise authority under Rule 

1006(f) to borrow from the Clearing 

Fund to the extent required for OCC to 

meet its settlement obligations with 

Clearing Members.7

In the unlikely event that any part of 

the borrowing under Rule 1006(f) is 

outstanding after 30 calendar days, or if 

OCC determines that some or all of the 

amount borrowed constituted an actual 

loss, OCC would charge the loss to the 

Clearing Fund.8 In the unlikely event 

that OCC incurred an investment loss 

resulting from a bank’s failure to return 

the invested cash because of 

bankruptcy, insolvency, receivership, 

suspension of operations or other 

similar event, OCC may, at its 

discretion, charge the loss to the 

Clearing Fund.9 OCC may also, at its 

discretion, apply skin-in-the-game to a 

loss resulting from a borrowing or bank 

failure in the form of liquid net assets 

funded by equity 10 in excess of 110% 

of OCC’s Target Capital Requirement.11

Proposed Changes 

Cash and Investment Management 

Policy 

OCC proposes to file its Cash and 

Investment Management Policy (or 

‘‘Policy’’) as a proposed rule of the 

clearing agency within the meaning of 

Section 19(b)(1) of the Exchange Act 12

and SEC Rule 19b–4.13 The Policy 

would include statements of purpose, 

applicability and scope, safeguarding 

standards for maintaining cash and 

related investments to minimize credit 

and liquidity risk, and guidelines for 

investing OCC Cash and Clearing 

Member Cash, as defined below. 

Purpose, Applicability and Scope 

The Policy would include statements 

of the Policy’s purpose, applicability, 

and scope. The purpose of the Policy 

would be to (1) outline the safeguarding 

standards for cash and related 

investments managed by OCC to 

minimize credit and liquidity risk, and 

(2) provide guidelines for investments 

permitted by OCC’s By-Laws and Rules. 

The Policy principally would apply to 

OCC’s Treasury department 

(‘‘Treasury’’), which has responsibility 

for managing cash on behalf of OCC. 

The Policy’s scope would include the 

safeguarding standards and investment 

activities specific to OCC’s own cash 

(‘‘OCC Cash’’) and cash from OCC’s 

Clearing Members (‘‘Clearing Member 

Cash’’). 

The Policy would define OCC Cash to 

include working capital related to future 

operating costs, inclusive of financial 

resource held to meet liquidity and 

resiliency requirements,14 proceeds 

from lines of credit, if any, maintained 

to support OCC’s working capital,15 the 


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Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Notices 1821 

FR 36444 (June 16, 2020) (File No. SR–OCC–2020– 

803) (discussing OCC’s non-bank liquidity facility). 

16See Exchange Act Release No. 92038 (May 27, 

2021), 86 FR 29861 (Jun. 3, 2021) (File No. SR– 

OCC–2021–003) (establishing a persistent minimum 

level of OCC’s own capital that it would contribute 

to default losses or liquidity shortfalls prior to 

allocating a default loss to the Clearing Fund 

contributions of non-defaulting Clearing Members). 

17See OCC Rule 1104. 

18See supra note 17 (citing SEC notices of noobjection to advance notices concerning OCC’s 

credit and liquidity facilities). 

19See supra note 7 and accompanying text. 

20See OCC Rule 1104. 21See 17 CFR 39.15 (requiring a derivatives 

clearing organization to comply with the 

segregation requirements section 4d of the 

Commodity Exchange Act). 22See OCC By-Laws Art. VI, Sec. 3(f) (providing 

for maintenance of segregated futures accounts). 23See 17 CFR 1.20(g)(4). 

24See Disclosure Framework, available at https:// 

www.theocc.com/Risk-Management/PFMIDisclosures. 

25As discussed, interest earned on Clearing Fund 

cash deposits held at a Federal Reserve Bank would 

accrue to the benefit of Clearing Members, less a 

cash management fee. 

26 In addition to investments in Government 

securities through overnight DVP transactions, the 

Continued 

Minimum Corporate Contribution,16

and investments made with OCC Cash. 

The Policy would not apply to cash held 

in respect of OCC’s pension plan, postretirement welfare plan, or other 

deferred compensation plans. The 

Policy would define Clearing Member 

Cash to include Clearing Fund cash 

deposits; cash deposited by Clearing 

Members in respect of margin 

requirements; cash held in liquidating 

settlement accounts for suspended 

Clearing Members,17 proceeds from 

OCC’s syndicated credit facility and 

liquidity facilities,18 and investments 

made with Clearing Member Cash.19

The Policy would not apply to non-cash 

collateral deposited by Clearing 

Members to satisfy margin or Clearing 

Fund requirements. 

Safeguarding Standards 

The Policy would address the 

safeguarding standards for managing 

OCC Cash and Clearing Member Cash, 

which OCC would either hold in a 

demand deposit or Federal Reserve 

Bank accounts or invest in accordance 

with OCC’s By-Laws and investment 

strategy, as discussed below. 

OCC Cash 

Unless invested, OCC Cash would be 

held in demand deposit accounts or at 

a Federal Reserve Bank. Demand 

deposit accounts would be limited to 

commercial financial institutions that 

meet initial and ongoing standards for 

depository banks outlined in OCC’s 

procedures concerning its banking 

relationships. 

Treasury would be responsible for 

maintaining appropriate levels of 

liquidity in OCC’s operating accounts to 

meet general business obligations and 

regulatory requirements. To fulfill this 

responsibility, the Policy would provide 

that OCC may maintain bank lines of 

credit for working capital purposes. The 

source of such credit line would need to 

meet the standards for credit facility 

banks outlined in OCC’s procedures 

concerning its banking relationships. 

Clearing Member Cash 

The Policy would provide that unless 

invested, Clearing Member Cash would 

be held in a demand deposit account or 

in accounts at a Federal Reserve Bank. 

With respect to commercial banks, 

Clearing Member Cash would only be 

held in financial institutions that meet 

the initial and ongoing standards for 

depository banks as provided in in 

OCC’s procedures concerning banking 

relationships. The Policy would provide 

that Clearing Member Cash collected at 

OCC’s settlement banks may be 

transferred to other depository banks, 

including to and from OCC’s bank 

accounts for settlement, investment, and 

cash management purposes. Upon the 

suspension of a Clearing Member, OCC 

would promptly move all margin and 

Clearing Fund cash related to the 

Clearing Member into a liquidating 

settlement account for use in meeting 

the obligations of the Clearing Member, 

as provided under OCC’s Rules.20

Treasury would be responsible for 

ensuring accounts are appropriately 

funded to meet financial obligations. 

Interest earned on Clearing Fund cash 

deposits held at a Federal Reserve Bank 

would accrue to the benefit of Clearing 

Members, less a cash management fee. 

The Policy would also provide that 

OCC would employ a bank account 

structure that segregates customer funds 

per applicable regulatory 

requirements 21 and OCC’s By-Laws and 

Rules.22 Futures customer segregated 

cash would be held in segregated fund 

accounts pursuant to applicable 

Commodity and Futures Trading 

Commission (‘‘CFTC’’) regulations, 

including that OCC ensures that it 

receives proper written 

acknowledgment from the depository 

for each new segregated funds account 

that the account has been established to 

hold segregated cash generated from 

futures customers.23 The Policy would 

further provide that if OCC sustains an 

investment loss with respect to invested 

margin cash OCC will not pass on the 

loss to a futures customer segregated 

account. 

Investment Guidelines 

The Policy would also provide 

guidelines for investments permitted by 

OCC’s By-Laws and Rules and approved 

by the Board or Compensation and 

Performance Committee (‘‘CPC’’), 

including OCC’s investment strategy, 

investment governance principles, and 

guidelines for the investment of OCC 

Cash and Clearing Member Cash. 

Investment Strategy 

The Policy would provide that OCC’s 

investment strategy is to preserve 

principal and maintain adequate 

liquidity. After principal and liquidity 

requirements are satisfied, only then 

would Management seek to optimize 

investment returns. OCC would disclose 

its investment strategy through its 

public website on a periodic basis via its 

qualitative disclosures to the Principles 

for Financial Market Infrastructure 

Disclosures.24

Investment Governance Principles 

The Policy would provide that OCC 

may invest OCC Cash and Clearing 

Member Cash in permitted investments 

per applicable regulatory requirements, 

OCC’s By-Laws and Rules, the 

investment strategy and the following 

governance principles. Current 

investment practices would be outlined 

in procedures maintained by OCC. 

Investment counterparties would need 

to be financial institutions or financial 

market utilities that meet initial and ongoing standards outlined in OCC’s 

procedures concerning its banking 

relationships, which consider the 

financial institution’s size, capital 

adequacy, product offering and 

operational capabilities. Any interest or 

gain received on the investments would 

belong to OCC except as may otherwise 

be provided in OCC’s By-Laws, Rules or 

Board-approved policies.25 OCC would 

not commingle investments of OCC 

Cash with investments of Clearing 

Member Cash. 

Investment of OCC Cash 

The Policy would provide that OCC 

Cash may be invested in instruments 

that pose minimal credit and liquidity 

risk pursuant to applicable regulatory 

requirements, OCC’s By-Laws, the 

investment strategy, and Board or CPC 

approved investments. Approved 

investments other than in Government 

securities would continue to be subject 

to Board or CPC approval, as required 

under Section 1 of Article IX of OCC’s 

By-Laws.26 In addition, investment of 


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Board has approved investments of OCC’s own cash 

in U.S. government money market mutual funds. 

27With respect to OCC’s liquid net assets funded 

by equity in excess of 110% of the Target Capital 

Requirement, the Board has initially approved 

investment of such funds in Government securities 

through DVP transactions for terms no more than 

30 days. 

28The Liquidity Risk Management Framework 

defines ‘‘Required Cash Deposits’’ (sometimes 

referred to as minimum cash requirements or 

‘‘MCR’’) as deposits of cash under OCC’s 

Contingency Funding Plan that supplement OCC’s 

Base Liquidity Resources (i.e., the amount of 

committed liquidity resources maintained at all 

times by OCC to meet its minimum Cover 1 

liquidity resource requirements under the 

applicable regulations). Under that framework, OCC 

may require a Clearing Member Group to post such 

additional cash collateral to supplement OCC’s 

Available Liquidity Resources (i.e., Base Liquidity 

Resources plus allowed Clearing Fund cash 

deposits in excess of the minimum required 

amount) when stressed liquidity demands for that 

Clearing Member Group are above established 

thresholds or until the settlement demand is met. 

See Exchange Act Release No. 89014 (June 4, 2020), 

85 FR 35446, 35449 (June 10, 2020) (File No. SR– 

OCC–2020–003). 

29Like Clearing Fund cash, OCC does not 

currently invest futures customer segregated funds. 

If OCC determined to invest such funds, such 

investments would be subject to CFTC regulations 

regarding a derivatives clearing organization’s 

investment of futures customer funds. See 17 CFR 

1.25. 

30See Exchange Act Release No. 90797 (Dec. 23, 

2020), 85 FR 86592 (Dec. 30, 2020) (File No. SR– 

OCC–2020–014) (approving OCC’s framework for 

identifying, measuring, monitoring, and managing 

OCC’s exposures to its counterparties); Exchange 

Act Release No. 89014, 85 FR 35446 (approving 

OCC’s approach to managing liquidity risk). 

31The same limitation would apply to Rule 

1006(a), which incorporates the reasons specified in 

Rule 1006(c) by reference. 

32See Exchange Act Release No. 88029, 85 FR at 

5502–03 (discussing OCC’s plan for replenishing its 

capital in the event that shareholders’ equity falls 

below certain thresholds). 

working capital in excess of 110% of 

OCC’s Target Capital Requirement 

would not be limited to overnight 

transactions.27

Investment of Clearing Member Cash 

The Policy would further provide that 

Clearing Member Cash may be invested 

in Government securities by OCC in 

transactions that provide next-day 

liquidity in accordance with applicable 

regulatory requirements, OCC’s Rules, 

and the investment strategy, subject to 

the following guiding principles. First, 

the Policy would provide that 

notwithstanding the authority to invest 

Clearing Fund cash under OCC Rule 

1002(c), it is OCC’s policy not to invest 

Clearing Fund cash, which is instead 

maintained in accounts at a Federal 

Reserve Bank or a commercial bank. 

This policy would be subject to an 

exception approved by the Chief 

Executive Officer or Chief Operating 

Officer in emergency situations (such as 

a disruption at a Federal Reserve Bank) 

when necessary or advisable for the 

protection of the Corporation or 

otherwise in the public interest to 

continue to facilitate the prompt and 

accurate clearance and settlement of 

confirmed trades or other transactions 

and to provide OCC’s services in a safe 

and sound manner. Second, the Policy 

would provide that margin cash would 

only be invested in instruments that 

provide liquidity to OCC by the 

following business day. Third, the 

Policy would provide that OCC will 

implement procedures to ensure that 

end-of-day margin cash balances remain 

above the aggregate level of any 

Required Cash Deposits, as that term is 

defined in OCC’s Liquidity Risk 

Management Framework.28 The policy 

with respect to investing Required Cash 

Deposits would be subject to the same 

exception as for investment of Clearing 

Fund cash. Fourth, any change 

regarding whether to investment futures 

customer segregated funds would be 

approved by OCC’s Chief Financial 

Officer in consultation with OCC’s Legal 

and Compliance departments.29

The Policy would also describe how 

OCC maintains liquidity facilities for 

immediate access to liquidity in the 

event of a suspension of a Clearing 

Member or a failure of a bank, securities 

or commodity clearing organization, or 

investment counterparty (with respect 

to the investment of Clearing Member 

Cash) to meet an obligation owing to 

OCC, or in anticipation thereof, 

pursuant to OCC Rules 1006(c) and (f), 

proposed amendments to which are 

discussed below. The liquidity 

providers for these facilities would be 

approved and monitored according to 

the OCC’s Third-Party Risk Management 

Framework and Liquidity Risk 

Management Framework.30

Amendments to OCC Rule 1006 

OCC proposes to amend OCC Rule 

1006, which governs its ability to access 

the Clearing Fund in the event of the 

failure (or anticipated failure) of bank to 

meet a settlement obligation with OCC, 

to extend such access to the failure of 

a non-bank investment counterparty to 

meet settlement obligations with OCC 

under the conditions identified in OCC 

Rule 1006(c) and (f). In addition, OCC 

proposes to restate OCC Rule 1006(f) for 

clarity. 

To ensure that OCC may access the 

Clearing Fund in the event of a failure 

or disruption of a non-bank 

counterparty with whom OCC has 

invested Clearing Member Cash, OCC 

would amend OCC Rule 1006(f) to 

include ‘‘investment counterparty’’ to 

the list of counterparties—currently, any 

bank or securities or commodities 

clearing organization—whose failure or 

disruption may result in a borrowing 

under Rule 1006(f). Similarly, OCC 

would also amend OCC Rule 1006(a) 

and (c) to add the same phrase to the list 

of counterparties whose failure resulting 

from bankruptcy, insolvency, 

receivership, suspension of operations, 

or any similar event may result in 

allocation of losses to the Clearing 

Fund. Rule 1006(c) and (f) would be 

further amended to provide that failure 

of an investment counterparty under 

those paragraphs would be limited to a 

failure with respect to Clearing Member 

Cash (i.e., cash invested under Rule 

604(a) or Rule 1002(c)).31 Any 

investment loss resulting from 

investment of OCC Cash would be 

treated as an operational loss that would 

be addressed under OCC’s Capital 

Management Policy, rather than a loss 

that would be allocated to the Clearing 

Fund.32

OCC would also amend the condition 

that triggers borrowing authority under 

Rule 1006(f)—currently clause (iii) of 

the first sentence of Rule 1006(f)— 

which would be renumbered as Rule 

1006(f)(1)(C). That condition would be 

amended to apply when the Corporation 

reasonably believes it necessary to 

borrow to meet its liquidity needs for 

‘‘daily settlement’’ rather than ‘‘sameday settlement,’’ as in the current text. 

OCC may reasonably believe that a 

disruption at a bank, securities or 

commodities clearing organization, or 

investment counterparty could last 

multiple days, resulting in liquidity 

needs for daily settlement over more 

than one day. This amendment would 

ensure that OCC has authority to initiate 

a borrowing for the amount OCC 

believes necessary to meet its liquidity 

needs over the timeframe OCC believes 

the disruption will affect OCC’s ability 

to meet daily settlement requirements 

with Clearing Members, rather than only 

that amount that OCC believes it needs 

on a day-by-day basis. 

OCC would further amend the 

condition in Rule 1006(f)(1)(C) to apply 

when OCC reasonably believes such a 

liquidity need will arise because of one 

of the identified counterparty’s failure 

‘‘to perform any obligation to the 

Corporation when due,’’ rather than 

such a counterparty’s failure ‘‘to achieve 

daily settlement.’’ This change aligns 

with the condition for allocation of 

losses under Rule 1006(c) and 

eliminates any ambiguity that might 

arise concerning the settlement 

obligations to which the current Rule 

refers. As under the current Rule, use of 

funds obtained through such a 


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33 15 U.S.C. 78q–1(b)(3)(F). 

34 15 U.S.C. 78q–1(b)(3)(F). 

35 17 CFR 240.17Ad–22(e)(7)(viii). 

36 17 CFR 240.17Ad–22(e)(13). 

37 17 CFR 240.17Ad–22(e)(16). 

38 15 U.S.C. 78q–1(b)(3)(F). 

39 Id. 

borrowing would continue to be limited 

to the purposes described in Rule 

1006(f)(1)(C), as amended, i.e., to meet 

OCC’s liquidity needs for daily 

settlement with Clearing Members. 

In addition to the substantive changes 

discussed above, OCC would also 

restate Rule 1006(f) for clarity. The 

current paragraph would be divided 

into four subparagraphs with courtesy 

headings: (1) Conditions; (2) Uses; (3) 

Term; Clearing Fund Charge; and (4) 

Substitution Requests. The conditions in 

Rule 1006(f)(1) would begin with the 

first sentence of current Rule 1006(f), 

less the conjoined clause beginning with 

‘‘and use such assets,’’ the substance of 

which would be moved to paragraph 

(f)(2). The remaining clause before the 

conjunction would be amended to 

describe OCC’s investment of Clearing 

Fund cash contributions in the active 

voice. The three conditions for a 

borrowing identified in Rule 1006(f), 

currently numbered (i) through (iii), 

would then follow after the conjunction 

as items (A) through (C). Item (A) would 

be further amended to remove legalese 

and state the condition more plainly. 

Item (C) would be amended 

substantively as discussed above. 

The prescribed uses for the borrowed 

funds described in several places 

throughout current Rule 1006(f) would 

be aggregated in Rule 1006(f)(2). As 

currently found in the conjoined clause 

in the first sentence of current Rule 

1006(f), Rule 1006(f)(2)(A) would 

provide that OCC may use funds it takes 

possession of under Rule 1006(f) to (i) 

meet obligations, losses or liquidity 

needs; or (ii) borrow or otherwise obtain 

funds through any means determined to 

be reasonable at the discretion of the 

Chairman, Chief Executive Officer or the 

Chief Operating Officer (including, 

without limitation, pledging such assets 

as security for loans and/or using such 

assets to effect repurchase, securities 

lending or other transactions). Proposed 

Rule 1006(f)(ii) would also be restated to 

remove a gendered pronoun. Rule 

1006(f)(2)(B) would describe the 

limitations on use of funds borrowed 

under the renumbered conditions in 

Rule 1006(f)(1)(A) and (C). 

Rule 1006(f)(3) would contain the 

term for a borrowing, as well as the 

conditions that would trigger a loss 

chargeable to the Clearing Fund. The 30- 

day period before which OCC would be 

obligated to charge a borrowed amount 

as a loss to the Clearing Fund would be 

located at Rule 1006(f)(3)(A), with 

certain non-substantive edits to the text. 

The conditions that would trigger the 

loss allocation to the Clearing Fund 

would be located at Rule 1006(f)(3)(B) 

and would be restated to move the 

lengthy conditions after the main 

clause, among other non-substantive 

revisions. 

Finally, Rule 1006(f)(4) would 

relocate OCC’s authority to refuse 

Clearing Member substitution requests 

regarding securities contributed to the 

Clearing Fund that the Corporation has 

taken possession of under Rule 1006(f). 

In addition to relocating that provision 

to the end of Rule 1006(f), this proposed 

rule change would restate that provision 

to reflect the reorganization of Rule 

1006(f). 

(2) Statutory Basis 

Section 17A(b)(3)(F) of the Exchange 

Ac,33 requires, among other things, that 

the rules of a clearing agency be 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions, 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, to perfect the mechanism of 

a national system for the prompt and 

accurate clearance and settlement of 

securities transactions, and, in general, 

to protect investors and the public 

interest. For the reasons discussed 

below, OCC believes the proposed rule 

change is consistent with Section 

17A(b)(3)(F) 34 of the Exchange Act and 

Rule 17Ad–22(e)(7)(viii),35 Rule 17Ad– 

22(e)(13),36 and Rule 17Ad–22(e)(16) 37

thereunder. 

Consistency With Section 17A(b)(3)(F) 

of the Exchange Act 

The Cash and Investment 

Management Policy is designed to 

safeguard cash and related investments 

within OCC’s custody or control. The 

Policy applies to, among other things, 

cash deposited by Clearing Members in 

respect of margin and Clearing Fund 

requirements, any Government 

securities in which OCC invests such 

cash, and the Minimum Corporate 

Contribution, each of which are liquid 

resources available to facilitate 

settlement and to cover potential losses 

in the event of a Clearing Member 

default. The Policy also extends to 

OCC’s own cash, including cash OCC 

maintains to cover potential general 

business losses so that OCC can 

continue operations and services as a 

going concern if those losses 

materialize, in accordance with OCC’s 

Capital Management Policy. By 

providing safeguarding standards for 

managing such cash and related 

investments, the Policy would help 

ensure those resources will be available 

to facilitate settlement, cover potential 

default losses, or cover potential general 

business losses, as applicable. 

Therefore, OCC believes the Policy is 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions, 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, and, in general, to protect 

investors and the public interest, 

consistent with Section 17A(b)(3)(F) of 

the Exchange Act.38

The proposed rule change is also 

designed to ensure that OCC can 

continue to promptly settle the 

securities and derivatives transactions it 

clears by enhancing the existing tools 

OCC has to address potential liquidity 

shortfalls. Specifically, the proposed 

rule change would expand the existing 

borrowing authority in OCC’s By-Laws 

to authorize borrowing in the 

extraordinary event that OCC faces a 

liquidity need in order to complete 

daily settlement with its Clearing 

Members resulting from the failure or 

disruption of an investment 

counterparty with whom OCC has 

invested Clearing Member Cash that is 

not a bank. 

It is conceivable, though extremely 

unlikely, that an investment 

counterparty may fail to return Clearing 

Member Cash that OCC has invested in 

Government securities with the 

counterparty in a DVP transaction as a 

result of a disruption or failure at that 

investment counterparty. The proposed 

rule change would enable OCC to 

borrow against the Clearing Fund in this 

scenario in order to avoid disrupting 

OCC’s ordinary settlement cycle. In the 

extremely unlikely event that OCC 

incurs a loss resulting from the 

investment of Clearing Member Cash, 

OCC would retain authority to allocate 

such loss to the Clearing Fund, at OCC’s 

discretion. Accordingly, OCC believes 

the proposed rule change is designed to 

promote the prompt and accurate 

clearance and settlement of securities 

transactions, in accordance with the 

requirements of Section 17A(b)(3)(F) of 

the Exchange Act.39

Consistency With Rule 17Ad–22(e)(16) 

Rule 17Ad–22(e)(16) under the 

Exchange Act requires, in part, that OCC 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to safeguard OCC’s 


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1824 Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Notices 

40 17 CFR 240.17Ad–22(e)(16). 

41 17 CFR 240.17Ad–22(e)(7)(viii). 

42See OCC Rule 505 (Extension of Settlements). 

43 17 CFR 240.17Ad–22(e)(13). 

44 15 U.S.C. 78q–1(b)(3)(I). 

own and its participants’ assets, 

minimize the risk of loss and delay in 

access to these assets, and invest such 

assets in instruments with minimal 

credit, market, and liquidity risks.40 As 

discussed above, the Policy outlines 

safeguarding standards for cash and 

related investments intended to 

minimize credit and liquidity risks. In 

addition, the Policy sets forth OCC’s 

conservative investment strategy, 

according to which OCC’s primary 

objective is to preserve principal and 

maintain adequate liquidity. The Policy 

also requires cash and related 

investments to be maintained with 

counterparties that have been initially 

approved and routinely monitored in 

accordance with OCC’s Third Party Risk 

Management Policy and procedures 

governing banking relationships. 

Accordingly, OCC believes that the 

Policy is consistent with Rule 17Ad– 

22(e)(16). 

Consistency With Rule 17Ad– 

22(e)(7)(viii) 

Additionally, Rule 17Ad–22(e)(7)(viii) 

requires that OCC address foreseeable 

liquidity shortfalls that would not be 

covered by OCC’s liquid resources and 

seek to avoid unwinding, revoking, or 

delaying the settlement of payment 

obligations.41 As stated above, OCC 

believes that it could be foreseeable, 

though extremely unlikely, that an 

investment counterparty that is not a 

bank may fail to return Clearing Member 

Cash as the result of the investment 

counterparty’s disruption or failure. An 

alternative available to OCC for 

addressing uncovered liquidity 

shortfalls would be to exercise authority 

under Rule 505 to extend the settlement 

window to the close of Fedwire.42 The 

proposed rule change would improve 

OCC’s ability to address such situations 

by expanding OCC’s borrowing 

authority to enable OCC to borrow 

against the Clearing Fund to address a 

failure or disruption at a non-bank 

investment counterparty rather than 

disrupting its ordinary settlement cycle. 

Accordingly, OCC believes that 

proposed changes to OCC Rules are 

consistent with Rule 17Ad– 

22(e)(7)(viii). 

Consistency With Rule 17Ad–22(e)(13) 

Finally, Rule 17Ad–22(e)(13) requires, 

in part, that OCC establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

ensure OCC has the authority to take 

timely action to contain losses and 

liquidity demands and continue to meet 

its obligations.43 As described above, 

this proposal would amend OCC’s Rules 

concerning loss allocation in the 

extremely unlikely event that the failure 

or disruption of a non-bank investment 

counterparty results in a loss to OCC 

arising from the investment of Clearing 

Member Cash. The expansion of existing 

authority to allocate such losses 

attributable to a non-bank investment 

counterparty helps establish a more 

transparent and clear loss allocation 

process that ensures OCC’s authority to 

take action to contain losses and 

continue to meet its clearance and 

settlement obligations. Accordingly, 

OCC believes the proposed changes to 

OCC’s Rules are consistent with Rule 

17Ad–22(e)(13). 

(B) Clearing Agency’s Statement on 

Burden on Competition 

Section 17A(b)(3)(I) of the Exchange 

Act 44 requires that the rules of a 

clearing agency not impose any burden 

on competition not necessary or 

appropriate in furtherance of the 

purposes of the Exchange Act. OCC does 

not believe the proposed rule change 

would have any impact or impose any 

burden on competition. The primary 

purpose of the proposed rule change is 

to formalize OCC’s Cash and Investment 

Management Policy and enhance OCC’s 

access to the Clearing Fund by 

expanding the existing authority 

concerning bank failures to also apply 

in the case of failures by other 

investment counterparties. The 

proposed rule change would not affect 

Clearing Members’ access to OCC’s 

services or disadvantage or favor any 

particular user in relationship to 

another user. As such, OCC believes that 

the proposed changes would not have 

any impact or impose any burden on 

competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments on the proposed 

rule change were not and are not 

intended to be solicited with respect to 

the proposed rule change and none have 

been 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 

up to 90 days (i) as the Commission may 

designate if it finds such 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 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

OCC shall post notice on its website 

of proposed changes that are 

implemented. The proposal shall not 

take effect until all regulatory actions 

required with respect to the proposal are 

completed. 

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 (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

OCC–2021–014 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–OCC–2021–014. 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 (http://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 such 

filing also will be available for 

inspection and copying at the principal 

office of OCC and on OCC’s website at 


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Federal Register / Vol. 87, No. 8 / Wednesday, January 12, 2022 / Notices 1825 

45 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 90085 

(October 2, 2020), 85 FR 63603 (October 8, 2020) 

(SR–NYSEAMER–2020–69) (‘‘SR–NYSEAMER– 

2020–69’’). 

5The Exchange may submit a separate rule filing 

to extend the expiration date of the proposed 

extension beyond March 31, 2022 if the Exchange 

requires additional temporary relief from the rule 

requirements identified in SR–NYSEAMER–2020– 

69. The amended NYSE American rules will revert 

back to their original state at the conclusion of the 

temporary relief period and any extension thereof. 

6See Securities Exchange Act Release Nos. 77241 

(February 26, 2016), 81 FR 11311 (March 3, 2016) 

(SR–NYSEMKT–2016–30) (‘‘2016 Notice’’). 

7See NYSE MKT Information Memorandum 16– 

02 (March 14, 2016). 

8See 2016 Notice, 81 FR at 11327 & 11332. 

9See Securities Exchange Act Release No. 89737 

(September 2, 2020), 85 FR 55712 (September 9, 

2020) (SR–FINRA–2020–027) (‘‘SR–FINRA–2020– 

027’’). 

10See note 4, supra. 

11See Securities Exchange Act Release No. 90619 

(December 9, 2020), 85 FR 81250 (December 15, 

2020) (SR–FINRA–2020–042). 

12See Securities Exchange Act Release No. 90823 

(December 30, 2020), 86 FR 650 (January 6, 2021) 

(SR–NYSEAMER–2020–88). 

https://www.theocc.com/CompanyInformation/Documents-and-Archives/ 

By-Laws-and-Rules. 

All comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal identifying 

information from comment submissions. 

You should submit only information 

that you wish to make available 

publicly. 

All submissions should refer to File 

Number SR–OCC–2021–014 and should 

be submitted on or before February 2, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.45

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–00378 Filed 1–11–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–93917; File No. SR– 

NYSEAMER–2021–49] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Extending the Expiration 

Date of the Temporary Amendments to 

Rules 9261 and 9830 

January 6, 2022. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on December 

27, 2021, NYSE American LLC (‘‘NYSE 

American’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes extending the 

expiration date of the temporary 

amendments to Rules 9261 and 9830 as 

set forth in SR–NYSEAMER–2020–69 

from December 31, 2021 to March 31, 

2022, in conformity with recent changes 

by the Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’). The 

proposed rule change would not make 

any changes to the text of NYSE 

American Rules 9261 and 9830. The 

proposed rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes extending the 

expiration date of the temporary 

amendments as set forth in SR– 

NYSEAMER–2020–69 4 to Rules 9261 

(Evidence and Procedure in Hearing) 

and 9830 (Hearing) from December 31, 

2021 to March 31, 2022, to harmonize 

with recent changes by FINRA to extend 

the expiration date of the temporary 

amendments to its Rules 9261 and 9830. 

SR–NYSEAMER–2020–69 temporarily 

granted to the Chief or Deputy Chief 

Hearing Officer the authority to order 

that hearings be conducted by video 

conference if warranted by public health 

risks posed by in-person hearings 

during the ongoing COVID–19 

pandemic. The proposed rule change 

would not make any changes to the text 

of Exchange Rules 9261 and 9830.5

Background 

In 2016, NYSE American (then known 

as NYSE MKT LLC) adopted 

disciplinary rules that are, with certain 

exceptions, substantially the same as the 

Rule 8000 Series and Rule 9000 Series 

of FINRA and its affiliate the New York 

Stock Exchange LLC (‘‘NYSE’’), and 

which set forth rules for conducting 

investigations and enforcement actions.6

The NYSE American disciplinary rules 

were implemented on April 15, 2016.7

In adopting disciplinary rules 

modeled on FINRA’s rules, NYSE 

American adopted the hearing and 

evidentiary processes set forth in Rule 

9261 and in Rule 9830 for hearings in 

matters involving temporary and 

permanent cease and desist orders 

under the Rule 9800 Series. As adopted, 

the text of Rule 9261 and Rule 9830 are 

substantially the same as the FINRA 

rules with certain modifications.8

In response to the COVID–19 global 

health crisis and the corresponding 

need to restrict in-person activities, on 

August 31, 2020, FINRA filed with the 

Commission a proposed rule change for 

immediate effectiveness, SR–FINRA– 

2020–027, which allowed FINRA’s 

Office of Hearing Officers (‘‘OHO’’) to 

conduct hearings, on a temporary basis, 

by video conference, if warranted by the 

current COVID–19-related public health 

risks posed by an in-person hearing. 

Among the rules FINRA amended were 

Rules 9261 and 9830.9

Given that FINRA and OHO 

administers disciplinary hearings on the 

Exchange’s behalf, and that the public 

health concerns addressed by FINRA’s 

amendments apply equally to Exchange 

disciplinary hearings, on September 15, 

2020, the Exchange filed to temporarily 

amend Rule 9261 and Rule 9830 to 

permit FINRA to conduct virtual 

hearings on its behalf.10 In December 

2020, FINRA filed a proposed rule 

change, SR–FINRA–2020–042, to extend 

the expiration date of the temporary 

amendments in SR–FINRA–2020–027 

from December 31, 2020, to April 30, 

2021.11 On December 22, 2020, the 

Exchange similarly filed to extend the 

temporary amendments to Rule 9261 

and Rule 9830 to April 30, 2021.12 On 

April 1, 2021, FINRA filed a proposed 

rule change, SR–FINRA–2021–006, to 

extend the expiration date of the 


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