Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Notices 20495 

23 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

OCC’s public website: https://www.theocc.com/ 

Company-Information/Documents-and-Archives/ 

By-Laws-and-Rules. 

4See Exchange Act Release No. 34–83916 (August 

23, 2018); 83 FR 44076 (August 29, 2018) (File No. 

SR–OCC–2017–020). 

5 83 FR at 44078. 

6 Id. 

7OCC By-Laws Art. VI, Section 27(a)(i), regarding 

default or insolvency of OCC, requires OCC to 

notify various stakeholders if OCC fails to comply 

with an undisputed obligation to pay money or 

deliver property to a Clearing Member under the 

By-Laws or Rules for a period of thirty days from 

the date that OCC receives notice from the Clearing 

Member of the past due obligation. 

8The letter OCC received from the FIA has been 

provided as Exhibit 3A to File No. SR–OCC–2022– 

005. 

be submitted on or before April 28, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.23

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07338 Filed 4–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94583; File No. SR–OCC– 

2022–005] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing of Proposed Rule Change 

Concerning Revisions to OCC’s Partial 

Tear-Up Rules 

April 1, 2022. 

Pursuant to Section 19(b) of the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’ or ‘‘Act’’),1 and Rule 

19b–4 thereunder,2 notice is hereby 

given that on March 22, 2022, The 

Options Clearing Corporation (‘‘OCC’’) 

filed with the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘Commission’’) 

the proposed rule change as described 

in Items I, II, and III below, which Items 

have been prepared primarily 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 

The proposed rule change would: (i) 

Amend OCC Rule 1111(e) to clarify the 

nature of the claim issued to Clearing 

Members that receive a pro rata 

payment as a result of a Partial Tear-Up; 

and (ii) amend OCC Rule 1111(g) to 

impose a limit on the amount of the 

special charge that can be levied on 

Clearing Members to re-allocate losses, 

costs and fees among resulting from a 

Partial Tear-Up among all nondefaulting Clearing Members. The 

proposed changes to OCC Rules are 

included in Exhibit 5 of File No. SR– 

OCC–2022–005. Material proposed to be 

added to OCC’s Rules as currently in 

effect is underlined and material 

proposed to be deleted is marked in 

strikethrough text. All capitalized terms 

not defined herein have the same 

meaning as set forth in the OCC ByLaws 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 

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 

In 2018, OCC adopted enhanced and 

new tools for recovery scenarios, 

including a Partial Tear-Up process 

designed to return OCC to a matched 

book by extinguishing positions that 

remain open after OCC has attempted 

one or more auctions.4 The process for 

determining and terminating Partial 

Tear-Up Positions is set forth in OCC 

Rule 1111(e). In adopting Rule 1111(e), 

OCC noted that its Partial Tear-Up 

process would be initiated if OCC 

determined that potential losses from 

remaining positions of the defaulting 

member would exceed OCC’s financial 

resources and that the process was 

designed to be initiated in advance of 

the exhaustion of OCC’s financial 

resources in order to maintain its ability 

to meet obligations to non-defaulting 

members.5 OCC also acknowledged that 

the process may be used to allocate 

losses in the event OCC’s resources are 

insufficient to pay the Partial Tear-Up 

Price.6 When the Partial Tear-Up 

process is used to allocate losses, Rule 

1111(e)(iii) currently provides that each 

Clearing Member will receive a pro rata 

payment based on OCC’s remaining 

resources and an unsecured claim 

against OCC for the difference between 

the pro rata amount received and the 

Partial Tear-Up Price. 

An unsecured claim issued pursuant 

to Rule 1111(e) provides a mechanism 

for OCC to compensate Clearing 

Members that receive a pro rata 

payment when warranted by particular 

circumstances (e.g., when funds are 

subsequently recovered from a defaulted 

Clearing Member or the estate of the 

defaulted Clearing Member). However, 

OCC Rules do not specify a specific 

payment obligation for these claims. 

The purpose of the proposed 

amendment to Rule 1111(e) is to 

provide clarity regarding the nature of 

the claim issued following a Partial 

Tear-Up. More specifically, the 

revisions to Rule 1111(e) would clarify 

that: (i) A Clearing Member receiving a 

pro rata payment following a partial 

tear-up will have a claim for the value 

of the difference between the pro rata 

amount received and the Partial TearUp Price; and (ii) such a claim shall be 

an unsecured claim on any recovery 

from a suspended or defaulted Clearing 

Member (or from the estate of a 

suspended or defaulted Clearing 

Member). Clarification of the nature of 

the claim arising out of Rule 1111(e) 

would, in turn, clarify that such claims 

would not provide a basis for triggering 

close-out netting under Article VI, 

Section 27 of OCC’s By-Laws.7

As part of its Partial Tear-Up process, 

OCC also adopted Rule 1111(g), which 

provides the Board with discretionary 

authority to levy a special charge against 

remaining non-defaulting Clearing 

Members for the purpose of re-allocating 

the losses, costs and fees imposed on 

holders of torn-up positions. Following 

the adoption of OCC Rule 1111, OCC 

received a letter from the Futures 

Industry Association (‘‘FIA’’) requesting 

that OCC limit the amount of the special 

charge that could be levied by the Board 

pursuant to Rule 1111(g) to the amount 

of a Clearing Member’s required 

contribution to the Clearing Fund.8 OCC 

has considered this request and 

proposes to amend Rule 1111(g) to cap 

the amount of the special charge levied 

under the rule to the amount of the 

Clearing Members required contribution 

to the Clearing Fund at the time of the 

special charge. The purpose of this 

change is to improve Clearing Members’ 

ability to measure, monitor and manage 

their potential exposure to OCC. 


khammond on DSKJM1Z7X2PROD with NOTICES
20496 Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Notices 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 15 U.S.C. 78q–1(b)(3)(F). 

11 17 CFR. 240.17AD–22(e)(23)(ii). 

12 17 CFR. 240.17AD–22(e)(23)(ii). 

13 15 U.S.C. 78q–1(b)(3)(I). 

(2) Statutory Basis 

Section 17A(b)(3)(F) 9 of the Exchange 

Act requires, among other things, that 

the rules of a clearing agency be 

designed, in general, to protect investors 

and the public interest. OCC believes 

that the proposed rule change is 

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

the Act.10 As noted above, the proposed 

revisions to OCC Rule 1111(e) protect 

investors and the public interest by 

more clearly describing the nature of the 

claim issued to Clearing Members that 

receive a pro rata payment following a 

Partial Tear-Up. The clarity provided by 

these amendments would protect 

investors and the public interest by 

eliminating the potential for ambiguity 

or uncertainty regarding the nature of a 

claim issued under Rule 1111(e), which 

could undermine OCC’s resiliency. The 

proposal to limit the amount of the 

special charge levied under Rule 1111(g) 

would also improve Clearing Members’ 

ability to measure and monitor their 

potential exposure to OCC allowing 

Clearing Members to more effectively 

manage their risk. Accordingly, OCC 

believes the proposed revisions to Rule 

1111(g) would protect investors and the 

public interest by enhancing Clearing 

Members’ ability to measure, monitor 

and manage their risk. The proposed 

rule change is not inconsistent with the 

existing rules of OCC, including any 

other rules proposed to be amended. 

In addition, SEC Rule 17Ad– 

22(e)(23)(ii) 11 provides that a clearing 

agency must establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

provide sufficient information to enable 

participants to identify and evaluate the 

risks, fees, and other material costs they 

incur by participating in the covered 

clearing agency. The proposed revisions 

to both Rule 1111(e) and Rule 1111(g) 

would provide additional clarity that 

would help Clearing Members identify 

and evaluate the risks, fees and other 

costs that they may incur as a result of 

the participation in OCC’s services. The 

proposed revisions to Rule 1111(e) 

clarify the nature of the claim that 

would be issued to Clearing Members if 

a Partial Tear-Up was used to allocate 

losses, and the change to Rule 1111(g) 

would implement a cap on the charge 

that could be levied under this 

provision. Both of these changes should 

improve Clearing Members’ ability to 

assess the potential risks, fees and costs 

that they may incur by participating in 

OCC. Accordingly, OCC believes that 

the proposed rule change is reasonably 

designed to provide participants 

sufficient information to identify and 

evaluate the risks, fees, and other 

material costs of participating in OCC’s 

services, in accordance with SEC Rule 

17Ad–22(e)(23)(ii).12

(B) Clearing Agency’s Statement on 

Burden of Competition 

Section 17A(b)(3)(I) of the Act 13

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 Act. OCC does not 

believe that the proposal to clarify the 

nature of the claim issued to a Clearing 

Member that received a pro rata 

payment following a Partial Tear-Up 

would impose any burden on 

competition because it would merely 

confirm the current meaning of OCC’s 

rules as opposed to changing it. The 

proposed clarification would not inhibit 

access to OCC’s services in any way, 

applies to all Clearing Members and 

does not disadvantage or favor any 

particular user in relationship to 

another user. OCC does not believe that 

the proposed limit to the amount of the 

special charge that can be levied under 

Rule 1111(g) would impose any burden 

on competition. All Clearing Members 

would benefit from the improved clarity 

provided by the proposed limit, which 

would in no way inhibit access to OCC’s 

services and does not disadvantage or 

favor any particular user in relationship 

to another user. Accordingly, OCC does 

not believe that the proposed rule 

change would have any impact or 

impose a 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 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

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–2022–005 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–2022–005. 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 

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

By-Laws-and-Rules#rule-filings. 

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. 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 67 / Thursday, April 7, 2022 / Notices 20497 

14 17 CFR 200.30–3(a)(12). 

All submissions should refer to File 

Number SR–OCC–2022–005 and should 

be submitted on or before April 28, 

2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–07342 Filed 4–6–22; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Data Collection Available for Public 

Comments 

ACTION: 60-Day notice and request for 

comments. 

SUMMARY: The Small Business 

Administration (SBA) intends to request 

approval from the Office of Management 

and Budget (OMB) for the collection of 

information described below. The 

Paperwork Reduction Act (PRA) 

requires agencies to publish a notice in 

the Federal Register concerning each 

proposed collection of information 

before submission to OMB, and to allow 

60 days for public comment in response 

to the notice. This notice complies with 

that requirement. 

DATES: Submit comments on or before 

June 6, 2022. 

ADDRESSES: Send all comments to Lori 

Gillen, HUBZone Program, Small 

Business Administration, Washington, 

DC 20416. 

FOR FURTHER INFORMATION CONTACT: Lori 

Gillen, HUBZone Program Director 

lori.gillen@sba.gov or Curtis B. Rich 

Agency Clearance Officer 202–205–7030 

curtis.rich@sba.gov. 

SUPPLEMENTARY INFORMATION: The 

collected information is submitted by 

small business concerns seeking 

certification as a certified HUBZone 

small business. SBA uses the 

information to verify a concern’s 

eligibility for the HUBZone programs, to 

comply a database of qualified small 

business concerns, as well as for the recertification and examination of 

certified HUBZone small business 

concerns. Finally, SBA uses the 

information to prepare reports for the 

Executive and legislative branches. 

OMB Control Number 3245–0320 

Title: ‘‘HUBZone Program Electronic 

Application, Recertification, and 

Program Examination.’’ 

Description of Respondents: Small 

business concerns seeking certification 

as a certified HUBZone small business 

concern. 

Form Number: N/A. 

Annual Responses: 3,621. 

Annual Burden: 11,425.5. 

Curtis Rich, 

Management Analyst. 

[FR Doc. 2022–07371 Filed 4–6–22; 8:45 am] 

BILLING CODE 8026–03–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #17383 and #17384; 

WASHINGTON Disaster Number WA–00104] 

Presidential Declaration of a Major 

Disaster for Public Assistance Only for 

the State of Washington 

AGENCY: Small Business Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Washington (FEMA–4650– 

DR), dated 03/29/2022. 

Incident: Severe Winter Storms, 

Straight-line Winds, Flooding, 

Landslides, and Mudslides. 

Incident Period: 01/01/2022 through 

01/15/2022. 

DATES: Issued on 03/29/2022. 

Physical Loan Application Deadline 

Date: 05/30/2022. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 12/29/2022. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW, Suite 6050, 

Washington, DC 20416, (202) 205–6734. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

03/29/2022, Private Non-Profit 

organizations that provide essential 

services of a governmental nature may 

file disaster loan applications at the 

address listed above or other locally 

announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Cowlitz, Franklin, 

Grays Harbor, Jefferson, Klickitat, 

Lewis, Mason, Pacific, Skagit, 

Skamania, Thurston, Wahkiakum. 

the Skokomish Indian Tribe, 

Quinault Indian Nation, Shoalwater 

Bay Indian Tribe of the Shoalwater 

Bay Indian Reservation, Squaxin 

Island Tribe of the Squaxin Island 

Reservation, Hoh Indian Tribe, 

Nisqually Indian Tribe, 

Confederated Tribes of the Chehalis 

Reservation, Swinomish Indian 

Tribal Community, and the Upper 

Skagit Indian Tribe. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Non-Profit Organizations with 

Credit Available Elsewhere ... 1.875 

Non-Profit Organizations without Credit Available Elsewhere ..................................... 1.875 

For Economic Injury: 

Non-Profit Organizations without Credit Available Elsewhere ..................................... 1.875 

The number assigned to this disaster 

for physical damage is 17383 B and for 

economic injury is 17384 0. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Francisco Sa ́nchez, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2022–07372 Filed 4–6–22; 8:45 am] 

BILLING CODE 8026–03–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

[Docket No. FAA–2022–0455] 

Agency Information Collection 

Activities: Requests for Comments; 

Clearance of a Renewed Approval of 

Information Collection: Certification of 

Airmen for the Operation of LightSport Aircraft 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice and request for 

comments. 

SUMMARY: In accordance with the 

Paperwork Reduction Act of 1995, FAA 

invites public comments about our 

intention to request Office of 

Management and Budget (OMB) 

approval to renew an information 

collection. This collection involves the 

submission of forms and other reporting 

and recordkeeping activities. The 

information to be collected is necessary 

to ensure compliance with regulations 

governing the manufacture and 

certification of light-sport aircraft, the 

training and certification of light-sport 

pilots and instructors, and the 

certification of light-sport aircraft 

Designated Pilot Examiners. 


khammond on DSKJM1Z7X2PROD with NOTICES