11776 Federal Register / Vol. 87, No. 41 / Wednesday, March 2, 2022 / Notices 

219See Cover Letter, supra note 1. 

220See Section III.C, supra. 

221 17 CFR 200.30–3(a)(85). 

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

2 17 CFR 240.19b–4. 

3See Notice of Filing infra note 5, at 87 FR 1819. 

4Securities Exchange Act Release No. 93916 (Jan. 

12, 2022), 87 FR 1819 (Jan. 12, 2022) (File No. SR– 

OCC–2021–014) (‘‘Notice of Filing’’). OCC also filed 

a related advance notice (SR–OCC–2021–803) 

(‘‘Advance Notice’’) with the Commission pursuant 

to Section 806(e)(1) of Title VIII of the Dodd-Frank 

Wall Street Reform and Consumer Protection Act, 

entitled the Payment, Clearing, and Settlement 

Supervision Act of 2010 and Rule 19b–4(n)(1)(i) 

under the Exchange Act. 12 U.S.C. 5465(e)(1). 15 

U.S.C. 78s(b)(1) and 17 CFR 240.19b–4, 

respectively. The Advance Notice was published in 

the Federal Register on January 12, 2022. Securities 

Exchange Act Release No. 93915 (Jan. 6, 2022), 87 

FR 1814 (Jan. 12, 2022) (File No. SR–OCC–2021– 

803). A Notice of No Objection to the Advance 

Notice was published in the Federal Register on 

February 23, 2022. See Securities Exchange Act 

the proposed price point for depth-ofbook data would increase the 

availability of the information for 

investors? Why or why not? Do 

commenters believe that the calculation 

of the proposed depth-of-book data fee 

would essentially double-charge 

customers for top-of-book information 

that they would have to buy separately 

through the Level I feed? Why or why 

not? 

18. What are commenters’ views on 

the prices for auction information? Do 

commenters believe the proposed prices 

for auction information are priced too 

high, too low, or at the correct level? 

Why or why not? What are commenters’ 

views on the lack of a distinction 

between prices charged to professional 

and non-professional users for auction 

information? 

19. In the Cover Letter,219 the 

Participants stated that, with respect to 

the fees for auction information, they 

looked to the percentage of average 

dialing trading volume that occurs 

during an auction process and 

determined that roughly 10% of the 

trading volume takes place in auctions. 

The Participants stated that they 

therefore believe that charging a fee for 

auction data that is 10% of the fee 

charged for depth-of-book data 

appropriately reflects the value of 

auction information. What are 

commenters’ views about this method 

for determining the fees for auction 

data? 

20. What are commenters’ views on 

the lack of an enterprise fee cap in the 

proposal? Should enterprise caps have 

been proposed by the Participants for 

each category of data (e.g., Level 1, 

depth-of-book, auction information)? 

Should multiples enterprise caps have 

been proposed to reflect different size 

enterprises? Why or why not? 

21. What are commenters’ views on 

the Participants’ clarification in the 

Proposed Amendment that the PerQuote-Packet Charges would not apply 

to the expanded market data content 

required by the MDI Rule and would 

only be available for the receipt and use 

of the Level 1 Service? 

22. What are commenters’ views on 

the belief of some market participants 

that conflicts of interest by the 

Participants who also sell proprietary 

data products have resulted in proposed 

fees that are not fair, reasonable, and 

unreasonably discriminatory? 220 What 

are commenters’ views on whether the 

opinions of the advisory committee 

members and SROs who did not vote in 

favor of the Proposed Amendment 

should have been accommodated in the 

Proposed Amendment? 

23. Should the Commission approve 

or disapprove the Proposed 

Amendment? Why or why not? Should 

the Commission approve the Proposed 

Amendment with modifications? If so, 

what modifications would be 

appropriate and why? 

Interested persons are invited to 

submit written data, views, and 

arguments regarding whether the 

proposal should be approved or 

disapproved by March 23, 2022. Any 

person who wishes to file a rebuttal to 

any other person’s submission must file 

that rebuttal by April 6, 2022. 

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 No. SR– 

CTA/CQ–2021–03 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 No. 

SR–CTA/CQ–2021–03. 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 the 

filing also will be available for 

inspection and copying at the 

Participants’ principal offices. 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 File No. SR–CTA/CQ– 

2021–03 and should be submitted on or 

before March 23, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.221

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2022–04334 Filed 3–1–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94304; File No. SR–OCC– 

2021–014)] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Granting Approval of Proposed Rule 

Change Concerning The Options 

Clearing Corporation’s Cash and 

Investment Management 

February 24, 2022. 

I. Introduction 

On December 23, 2021, the Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change SR–OCC–2021– 

014 (‘‘Proposed Rule Change’’) pursuant 

to Section 19(b) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 and Rule 19b–4 2 thereunder to 

(i) add OCC’s existing policy regarding 

cash and related investments to its 

Rules, and (ii) amend OCC’s Rules 

governing the use of Clearing Fund 

contributions to ensure access in the 

event of the failure of an investment 

counterparty with whom OCC has 

invested cash collateral.3 The Proposed 

Rule Change was published for public 

comment in the Federal Register on 

January 12, 2022.4 The Commission has 


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Release No. 94270 (Feb. 17, 2022), 87 FR 10262 

(Feb. 23, 2022) (File No. SR–OCC–2021–803). 

5The Commission received no comments on the 

Proposed Rule Change; however, since the 

Proposed Rule Change was also filed as an advance 

notice, all public comments received on the 

proposal are considered regardless of whether the 

comments are submitted on the Proposed Rule 

Change or the Advance Notice. The Commission 

received a comment letter on the Advance Notice 

that addressed market conduct generally; however, 

additional discussion is unnecessary because the 

substance of the letter does not bear on the basis 

for the Commission’s decision to approve the 

Proposed Rule Change. Comments on the Advance 

Notice are available at https://www.sec.gov/ 

comments/sr-occ-2021-803/srocc2021803.htm. 

6Capitalized terms used but not defined herein 

have the meanings specified in OCC’s Rules and ByLaws, available at https://www.theocc.com/about/ 

publications/bylaws.jsp. 

7See By-Law Art. IX, Sec. 1. 

8See OCC Rule 604(a); Rule 1006(c). 

9See Notice of Filing, 87 FR 1820. 

10Under the proposed Policy, OCC Cash would 

include working capital related to future operating 

costs, inclusive of financial resources held to meet 

liquidity and resiliency requirements, proceeds 

from lines of credit, if any, maintained to support 

OCC’s working capital, and investments made with 

OCC Cash. OCC Cash would also include OCC’s 

Minimum Corporate Contribution. See Securities 

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). 

OCC Cash would not include cash held in respect 

of OCC’s pension plan, post-retirement welfare 

plan, or other deferred compensation plans. 

11Under the proposed Policy, Clearing Member 

Cash would include cash collateral deposited as 

margin or Clearing Fund contributions, cash held in 

liquidating settlement accounts for suspended 

Clearing Members pursuant to OCC’s Rule 1104, 

and investments made with Clearing Member Cash. 

Clearing Member Cash would also include proceeds 

from OCC’s syndicated credit facility and liquidity 

facilities. See Securities Exchange Act Release No. 

88971 (May 28, 2020), 85 FR 34257 (Jun. 3, 2020) 

(File No. SR–OCC–2020–804) (discussing OCC’s 

revolving credit facility); Securities Exchange Act 

Release No. 89039 (Jun. 10, 2020), 85 FR 36444 

(Jun. 16, 2020) (File No. SR–OCC–2020–803) 

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

12See OCC Rule 1104. 

13See 17 CFR 39.15 (requiring a derivatives 

clearing organization to comply with the 

segregation requirements section 4d of the 

Commodity Exchange Act). 

14See OCC By-Laws Art. VI, Sec. 3(f) (providing 

for maintenance of segregated futures accounts). 

15OCC’s Qualitative Disclosures are available at 

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

16Additionally, OCC’s Third-Party Risk 

Management Framework describes the basis for 

evaluating financial institutions based on financial 

resources and operational capacity, such as whether 

a relationship is structured to allow prompt access 

to assets and whether a custodian is a supervised 

and regulated institution that adheres to generally 

accepted accounting practices, maintains 

safekeeping procedures, and has controls that fully 

protect these assets. See Securities Exchange Act 

Release No. 90797 (Dec. 23, 2021), 85 FR 86592, 

86593 (Dec. 30, 2021). 

17OCC’s Target Capital Requirement is the 

amount of shareholders’ equity recommended by 

OCC management and approved by the Board to 

ensure compliance under both the Commission and 

Commodity Futures Trading Commission rules and 

to keep such additional amount the Board may 

approve for capital expenditures. See OCC Rule 

101(T)(1). 

18Under its Liquidity Risk Management 

Framework, OCC may require a Clearing Member 

Group to post cash collateral to supplement OCC’s 

Available Liquidity Resources 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 (Jun. 4, 2020), 85 FR 35446, 

35449 (Jun. 10, 2020) (File No. SR–OCC–2020–003). 

19See e.g., Securities Exchange Act Release No. 

82502 (Jan. 12, 2018), 82 FR 2825, 2826 (Jan. 19, 

2018) (File No. SR–OCC–2017–009) (stating that 

OCC would pass interest income earned on Clearing 

Fund cash deposited at a Federal Reserve Bank 

through to its Clearing Members). 

20See OCC Rule 1006(a) and (c). 

21See OCC Rule 1006(f). 

received no comments regarding the 

substance of the Proposed Rule 

Change.5 This order approves the 

Proposed Rule Change. 

II. Background 6

OCC is proposing to add to its Rules 

a policy governing OCC’s cash and 

investment practices (the ‘‘Cash and 

Investment Management Policy’’ or 

‘‘Policy’’) and amend its Rules regarding 

access to Clearing Fund contributions to 

address the failure of an investment 

counterparty to return Clearing Member 

cash collateral. 

A. Policy Regarding Cash and Related 

Investments 

OCC’s current rules include 

provisions governing the management 

and investment of both OCC’s own 

funds and cash deposited by Clearing 

Members. Pursuant to its rules, OCC’s 

Board of Directors (‘‘Board’’) may invest 

funds in excess of the amount needed as 

working capital in Government 

securities or such other securities or 

financial instruments as theBoard may 

from time to time approve.7 Further, 

OCC’s rules allow it to invest in 

Government securities cash that it 

receives and holds from Clearing 

Members’ margin requirements and 

Clearing Fund contributions.8 OCC 

proposes to add its Cash and Investment 

Management Policy to its current 

investment related rules.9

The proposed Cash and Investment 

Management Policy will build on OCC’s 

existing Rules by (i) outlining the 

safeguarding standards for cash and 

related investments managed by OCC to 

minimize credit and liquidity risk, and 

(2) providing guidelines for investments 

permitted by OCC’s Rules as described 

above. With regard to safeguarding cash, 

the Policy would allow OCC to hold 

OCC Cash 10 and Clearing Member 

Cash 11 in demand deposit accounts 

with commercial banks or in accounts at 

a Federal Reserve Bank. Consistent with 

OCC’s current Rules, the Policy would 

require OCC to move all margin and 

Clearing Fund cash related to a 

suspended Clearing Member into a 

liquidating settlement account for use in 

meeting the obligations of the Clearing 

Member.12 The Policy would also 

require that OCC employ a bank account 

structure that segregates customer funds 

per applicable regulatory 

requirements 13 and OCC’s By-Laws and 

Rules.14

With regard to investments, the Policy 

would provide that OCC’s investment 

strategy is to preserve principal and 

maintain adequate liquidity. OCC 

outlines its specific investments in 

internal procedures, but will publish its 

investment strategy in its Qualitative 

Disclosures posted to OCC’s public 

website.15 Under the proposed Policy, 

OCC will invest only with 

counterparties that meet the financial 

and operational standards outlined in 

OCC’s procedures concerning its 

banking relationships.16

The Policy would affirm OCC’s 

current practice of not investing 

Clearing Fund cash, which is instead 

maintained in accounts at a Federal 

Reserve Bank or a commercial bank. The 

Policy would also limit the investment 

of margin cash to instruments that 

provide liquidity to OCC by the 

following business day. In contrast, the 

Policy would not limit the investment of 

OCC cash in excess of 110 percent of its 

Target Capital Requirement 17 to 

overnight transactions. Further, the 

Policy would require procedures to 

ensure that end-of-day margin cash 

balances remain above the aggregate 

level of any Required Cash Deposits to 

support OCC’s management of liquidity 

risk.18 Under the Policy, interest or gain 

received on investments will belong to 

OCC except as otherwise provided for in 

OCC’s Rules.19

B. Access to Clearing Fund 

Contributions 

OCC’s current Rules define the 

conditions under which OCC may use 

Clearing Fund assets to make good 

losses or expenses suffered by OCC or 

by the Clearing Fund with regard to 

borrowings made by OCC.20 OCC’s 

Rules also define the conditions under 

which OCC may borrow Clearing Fund 

assets.21 OCC’s Rules address OCC’s 

authority to access Clearing Fund assets 

related to the failure of a bank or 

clearing organization to perform its 

obligations to OCC, but not the failure 

of an investment counterparty. OCC 

proposes a series of changes to its Rules, 


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22 15 U.S.C. 78s(b)(2)(C). 

23 15 U.S.C. 78q–1(b)(3)(A). 

24 17 CFR 240.17Ad–22(e)(13). 

25 17 CFR 240.17Ad–22(e)(16). 

26 15 U.S.C. 78q–1(b)(3)(F). 

27 15 U.S.C. 78q–1(b)(3)(F). 

28 17 CFR 240.17Ad–22(e)(13). 

29See Securities Exchange Act Release No. 87717 

(Dec. 11, 2019), 84 FR 68985, 68987 (Dec. 17, 2019) 

(File No. SR–OCC–2019–009). 

30See Securities Exchange Act Release No. 89014 

(Jun. 4, 2020), 85 FR 35446, 35450 (Jun. 10, 2020) 

(File No. SR–OCC–2020–003) (stating that cash 

contributions to the Clearing fund serve as an 

important source of liquidity and that non-cash 

described below, to broaden OCC’s 

authority to access Clearing Fund assets 

to address the potential failure of an 

investment counterparty to meet its 

obligations to OCC. 

OCC proposes to amend its Rules 

1006(a) and (c) to add ‘‘investment 

counterparty’’ to the list of 

counterparties whose failure to perform 

any obligation to OCC when due 

because of its bankruptcy, insolvency, 

receivership, suspension of operations, 

or any similar event that causes OCC to 

sustain a loss. OCC also proposes to 

amend its Rule 1006(f) to authorize OCC 

to take possession of cash or securities 

deposited by Clearing Members as 

contributions to the Clearing Fund and 

securities in which the OCC has 

invested Clearing Fund cash 

contributions if OCC reasonably 

believes it necessary to borrow to meet 

its liquidity needs for same-day 

settlement as a result of the failure of an 

investment counterparty. However, the 

proposed changes to Rules 1006(a), (c), 

and (f) would limit access to failures 

with respect to cash invested under 

Rules 604(a) and 1002(c), which deal 

with margin cash and Clearing Fund 

cash contributions, respectively. 

OCC is also proposing to restate and 

reorganize Rule 1006(f), which currently 

consists of a single paragraph, into four 

subparagraphs with the following 

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

Term; Clearing Fund Charge; and (4) 

Substitution Requests. To eliminate a 

potential inconsistency with Rule 

1006(c), OCC would revise the 

condition triggering OCC’s access to the 

Clearing Fund from failure ‘‘to achieve 

daily settlement’’ to failure ‘‘to perform 

any obligation to the Corporation when 

due.’’ The proposed changes to 1006(f) 

also include the removal of a gendered 

pronoun and other administrative 

changes. 

III. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Exchange 

Act directs the Commission to approve 

a proposed rule change of a selfregulatory organization if it finds that 

such proposed rule change is consistent 

with the requirements of the Exchange 

Act and the rules and regulations 

thereunder applicable to such 

organization.22 After carefully 

considering the Proposed Rule Change, 

the Commission finds that the proposal 

is consistent with the requirements of 

the Exchange Act and the rules and 

regulations thereunder applicable to 

OCC. More specifically, the Commission 

finds that the proposal is consistent 

with Section 17A(b)(3)(A) of the 

Exchange Act,23 and Rule 17Ad– 

22(e)(13) 24 and Rule 17Ad–22(e)(16) 25

thereunder, as described in detail 

below. 

A. Consistency With Section 

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

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

Act 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 and, to the extent 

applicable, derivative agreements, 

contracts, and transactions as well as to 

ensure the safeguarding of securities 

and funds which are in the custody or 

control of the clearing agency.26 Based 

on its review of the record, and for the 

reasons described below, the 

Commission finds the proposal is 

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

the Exchange Act. 

The Commission believes that the 

proposed adoption of the Cash and 

Investment Management Policy would 

be consistent with the the safeguarding 

of securities and funds because the 

proposed changes would build on 

OCC’s current Rules for managing cash 

and investments. The Policy, which 

OCC proposes to add to its Rules, 

includes standards for safeguarding 

OCC Cash and Clearing Member Cash 

through the application of OCC’s 

counterparty standards, such as 

allowing OCC Cash and Clearing 

Member Cash to be deposited only in a 

Federal Reserve Bank or in demand 

deposit accounts with institutions that 

meet the standards set out in OCC’s 

current risk management strategy to 

minimize the risk of loss or delay in 

access to such funds. Further, to support 

OCC’s liquidity risk management 

practices, the Policy includes 

limitations on the permitted tenure of 

investments. The Commission believes, 

therefore, that adding the Policy to 

OCC’s Rules is consistent with the 

safeguarding of securities and funds in 

OCC’s custody or control. 

The Commission believes that the 

proposed changes to broaden OCC’s 

authority to access Clearing Fund 

contributions are consistent with 

promoting the prompt and accurate 

clearance and settlement of securities 

transactions. The proposed changes will 

increase OCC’s authority to access 

Clearing Fund contributions to address 

losses or shortfalls arising out of the 

failure of an investment counterparty to 

perform with regard to investments, 

margin cash or Clearing Fund cash. In 

the event that a counterparty with 

whom OCC has invested Clearing 

Member Cash has failed, the proposed 

rule change is designed to allow OCC to 

access the Clearing Fund to meet OCC’s 

payment obligations. Ensuring that OCC 

is able to meet its payment obligations 

would, in turn, reduce the likelihood of 

a disruption to the timely settlement of 

derivates contracts and related 

transactions, such as the payment of 

premiums or cash settlements arising 

out of exercise and assignment 

activities. The Commission believes, 

therefore, that allowing OCC access to 

the Clearing Fund contributions in the 

event of a failure of an investment 

counterparty would promote the prompt 

and accurate clearance and settlement of 

securities transactions and, to the extent 

applicable, derivative agreements, 

contracts, and transactions. 

The Commission believes, therefore, 

that the proposal to add OCC’s policy 

regarding cash and related investments 

to its Rules, and amend OCC’s Rules 

governing the use of Clearing Fund 

contributions to ensure access in the 

event of the failure of an investment 

counterparty with whom OCC has 

invested cash collateral, is consistent 

with the requirements of Section 

17A(b)(3)(F) of the Exchange Act.27

B. Consistency With Rule 17Ad– 

22(e)(13) Under the Exchange Act 

Rule 17Ad–22(e)(13) under the 

Exchange Act requires, among other 

things, that a covered clearing agency 

establish, implement, maintain, and 

enforce written policies and procedures 

reasonably designed to ensure the 

covered clearing agency has the 

authority to take timely action to 

contain losses and liquidity demands 

and continue to meet its obligations.28

As the Commission has observed 

previously, OCC relies on the resources 

in its Clearing Fund to manage the 

potential losses arising out of the default 

of a Clearing Member under extreme but 

plausible market conditions.29 OCC also 

relies on such resources to manage 

potential liquidity shortfalls arising out 

of the default of a Clearing Member 

under extreme but plausible market 

conditions.30 In the event of a Clearing 


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contributions provide a source of collateral 

necessary for OCC to access sources of liquidity). 

31 17 CFR 240.17Ad–22(e)(13). 

32 17 CFR 240.17Ad–22(e)(16). 

33Covered Clearing Agency Standards, 81 FR at 

70837. 

34 Id. 

35The Policy would allow OCC to invest its own 

cash in longer-tenured instruments only where such 

cash is in excess of 110 percent of OCC’s Target 

Capital Requirement. 

36 17 CFR 240.17Ad–22(e)(16). 

37 In approving this Proposed Rule Change, the 

Commission has considered the proposed rules’ 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

38 15 U.S.C. 78s(b)(2). 

39 17 CFR 200.30–3(a)(12). 1 17 CFR 200.30–3a(a)(1)(ii). 

Member default, unless it has access to 

the Clearing Fund contributions of nondefaulting Clearing Members, OCC’s 

inability to access the defaulter’s cash 

collateral due to the failure of an 

investment counterparty could inhibit 

OCC’s ability to contain losses and 

liquidity demands. The Commission 

also believes that the proposed changes 

to restate and reorganize Rule 1006(f) 

would enhance the rule’s clarity, and 

therefore help ensure OCC’s authority to 

access Clearing Fund contributions to 

address losses or shortfalls arising out of 

the failure of an investment 

counterparty to perform with regard to 

investments of margin cash or Clearing 

Fund cash. 

The Commission believes, therefore, 

that the proposed changes to broaden 

OCC’s authority to access to Clearing 

Fund contributions are consistent with 

Rule 17Ad–22(e)(13) under the 

Exchange Act.31

C. Consistency With Rule 17Ad– 

22(e)(16) Under the Exchange Act 

Rule 17Ad–22(e)(16) under the 

Exchange Act requires that a covered 

clearing agency establish, implement, 

maintain, and enforce written policies 

and procedures reasonably designed to 

safeguard its 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.32 In adopting Rule 17Ad– 

22(e)(16), the Commission provided 

guidance for consideration by covered 

clearing agencies.33 Such guidance 

included the consideration of whether a 

covered clearing agency’s investment 

strategy is consistent with its overall 

risk management strategy and fully 

disclosed to participants.34

The Commission believes that the 

proposed Cash and Investment 

Management Policy would support and 

enhance OCC’s current Rules regarding 

the investment of its and its 

participants’ cash assets. As described 

above, the Policy outlines safeguarding 

standards, such as allowing OCC Cash 

and Clearing Member cash to be 

deposited only in a Federal Reserve 

Bank or in demand deposit accounts 

with institutions that meet the standards 

set out in OCC’s current risk 

management strategy (e.g., OCC’s Third 

Party Risk Management Framework) to 

minimize the risk of loss or delay in 

access to such funds. The Commission 

believes further that limiting the 

investment of cash to Government 

Securities, and specifically limiting the 

investment of Clearing Member Cash to 

instruments that provide liquidity to 

OCC by the following business day, is 

consistent with investing in assets with 

minimal credit, market, and liquidity 

risks.35

The Commission believes, therefore, 

that the addition of the Cash and 

Investment Management Policy to 

OCC’s Rules is consistent with Rule 

17Ad–22(e)(16) under the Exchange 

Act.36

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the Proposed 

Rule Change is consistent with the 

requirements of the Exchange Act, and 

in particular, the requirements of 

Section 17A of the Exchange Act 37 and 

the rules and regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Exchange Act,38

that the Proposed Rule Change (SR– 

OCC–2021–014) be, and hereby is, 

approved. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.39

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2022–04330 Filed 3–1–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94305] 

Securities Exchange Act of 1934; 

Notice of Intention To Cancel 

Registration of Certain Municipal 

Advisors Pursuant to Section 15b(C)(3) 

of the Securities Exchange Act of 1934 

February 24, 2022. 

Notice is given that the Securities and 

Exchange Commission (the 

‘‘Commission’’) intends to issue an 

order, pursuant to Section 15B(c)(3) of 

the Securities Exchange Act of 1934 (the 

‘‘Act’’), cancelling the municipal 

advisor registration of Meno Accounting 

& Financial Services (CIK 0001622155, 

File No. 867–01015) (hereinafter 

referred to as the ‘‘registrant’’). 

Section 15B(c)(3) of the Act provides, 

in pertinent part, that if the Commission 

finds that any municipal advisor 

registered under Section 15B is no 

longer in existence or has ceased to do 

business as a municipal advisor, the 

Commission, by order, shall cancel the 

registration of such municipal advisor. 

Accordingly, the Commission finds 

that the registrant (a) is no longer in 

existence and is not registered as a 

municipal advisor with the MSRB under 

MSRB Rule A–12(a) and/or (b) does not 

have an associated person who is 

qualified as a municipal advisor 

representative under MSRB Rule G–3(d) 

and for whom there is a Form MA–I 

required by 17 CFR 240.15Ba1–2(b) 

available on EDGAR. 

Notice is also given that any 

interested person may, by March 28, 

2022, at 5:30 p.m. Eastern Time, submit 

to the Commission in writing a request 

for a hearing on the cancellation of the 

registration of the registrant, 

accompanied by a statement as to the 

nature of such person’s interest, the 

reason for such request, and the issues, 

if any, of fact or law proposed to be 

controverted, and such person may 

request to be notified if the Commission 

should order a hearing thereon. Any 

such communication should be 

addressed to the Commission’s 

Secretary at the address below. 

At any time after March 28, 2022, the 

Commission may issue an order or 

orders cancelling the registration of the 

registrant, upon the basis of the 

information stated above, unless an 

order or orders for a hearing on the 

cancellation shall be issued upon 

request or upon the Commission’s own 

motion. Persons who requested a 

hearing, or to be advised as to whether 

a hearing is ordered, will receive any 

notices and orders issued in this matter, 

including the date of the hearing (if 

ordered) and any postponements 

thereof. Any registrant whose 

registration is cancelled under delegated 

authority may appeal that decision 

directly to the Commission in 

accordance with Rules 430 and 431 of 

the Commission’s rules of practice (17 

CFR 201.430 and 431). 

ADDRESSES: Secretary, U.S. Securities 

and Exchange Commission, 100 F Street 

NE, Washington, DC 20549. 

FOR FURTHER INFORMATION CONTACT: 

Mark Elion, Attorney Advisor, Office of 

Municipal Securities, 100 F Street NE, 

Washington, DC 20549, or at (202) 551– 

5680. 


lotter on DSK11XQN23PROD with NOTICES1