33414 Federal Register / Vol. 86, No. 119 / Thursday, June 24, 2021 / Notices 

74See LLC Agreement Sections 2.1, 2.2, 2.4, 2.5, 

2.6, 2.7, 3.1, 4.2, 4.5, 4.6, 4.7, 4.8, 4.9, 4.11, 5.1, 5.2, 

5.3, 5.4, 5.6, 5.7, 6.3, 6.4, 6.5, 7.5, 7.6, 7.7, 8.3, 9.2, 

9.3, 9.4, 9.5, 9.6, 9.7, 9.8, 10.3, 10.4, 11.2, 11.3, 11.4, 

11.5, 11.6, 12, 13.1, 14, 16.2, 17, 18.2, 18.3, 18.4, 

18.5, 18.7, 18.9, 18.10, 18.11, and 18.12. 

75 15 U.S.C. 78f(b)(1). 

76 15 U.S.C. 78f(b). 

77 15 U.S.C. 78f(b)(5). 

78 15 U.S.C. 78f(b)(5). 

79 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

Additional Provisions 

As previously mentioned, BSTX is a 

Delaware limited liability company. As 

such, the LLC Agreement contains 

numerous provisions that are standard 

or not novel for a similarly situated 

commercial business registered as a 

limited liability company under the 

laws of the state of Delaware.74 The 

Exchange believes that these provisions 

are consistent with Section 6(b)(1) of the 

Act 75 because they are consistent with 

corporate governance practices, 

generally, and they would help ensure 

that the Exchange, including in its 

operation of facilities, is so organized 

and has the capacity to be able to carry 

out the purposes of the Act. 

2. Statutory Basis 

In addition to the sections above that 

discuss variations from the BOX 

Options LLC Agreement and/or BOX 

Holdings LLC Agreement and their 

associated statutory bases, the Exchange 

believes that the proposal is consistent 

with the requirements of Section 6(b) of 

the Act,76 in general, and furthers the 

objectives of Section 6(b)(1),77 in 

particular, in that it enables the 

Exchange to be so organized so as to 

have the capacity to be able to carry out 

the purposes of the Act and to comply, 

and to enforce compliance by its 

exchange members and persons 

associated with its exchange members, 

with the provisions of the Act, the rules 

and regulations thereunder, and the 

rules of the Exchange. The Exchange 

also believes that this filing furthers the 

objectives of Section 6(b)(5) of the Act 78

in that it is designed to facilitate 

transactions in securities, to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and in general, to protect 

investors and the public interest. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the Proposed Rule Change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

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– 

BOX–2021–14 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–BOX–2021–14. 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 principal 

office of the Exchange. 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–BOX–2021–14 and should 

be submitted on or before July 15, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.79

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–13246 Filed 6–23–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92213; File No. SR–NSCC– 

2021–002] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing of Partial 

Amendment No. 1 and Order Granting 

Accelerated Approval of a Proposed 

Rule Change, as Modified by Partial 

Amendment No. 1, To Amend the 

Supplemental Liquidity Deposit 

Requirements 

June 21, 2021. 

I. Introduction 

On March 5, 2021, National Securities 

Clearing Corporation (‘‘NSCC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) proposed 

rule change SR–NSCC–2021–002 

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

Securities Exchange Act of 1934 

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

amend its supplemental liquidity 


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Federal Register / Vol. 86, No. 119 / Thursday, June 24, 2021 / Notices 33415 

3See Notice of Filing, infra note 4, at 86 FR 

15738. On March 5, 2021, NSCC also filed the 

proposals contained in the proposed rule change as 

advance notice SR–NSCC–2021–801 (the ‘‘Advance 

Notice’’) with the Commission pursuant to Section 

806(e)(1) of the Dodd-Frank Wall Street Reform and 

Consumer Protection Act entitled the Payment, 

Clearing, and Settlement Supervision Act of 2010 

(‘‘Clearing Supervision Act’’), 12 U.S.C. 5465(e)(1), 

and Rule 19b–4(n)(1)(i) of the Act, 17 CFR 240.19b– 

4(n)(1)(i). Notice of filing of the Advance Notice 

was published in the Federal Register on March 24, 

2021. Securities Exchange Act Release No. 91347 

(March 18, 2021), 86 FR 15750 (March 24, 2021) 

(File No. SR–NSCC–2021–801). 

4Securities Exchange Act Release No. 91350 

(March 18, 2021), 86 FR 15738 (March 24, 2021) 

(File No. SR–NSCC–2021–002) (‘‘Notice of Filing’’). 

5Comments are available at https://www.sec.gov/ 

comments/sr-nscc-2021-002/srnscc2021002.htm. To 

date, the comments received generally support the 

proposal. 

6 15 U.S.C. 78s(b)(2). 

7Securities Exchange Act Release No. 91788 (May 

7, 2021), 86 FR 26112 (May 12, 2021) (File No. SR– 

NSCC–2021–002). 

8 17 CFR 240.17Ad–22(a)(1). 

9Capitalized terms not defined herein are defined 

in NSCC’s Rules and Procedures (‘‘Rules’’), 

available at http://dtcc.com/∼/media/Files/ 

Downloads/legal/rules/nscc_rules.pdf. 

10See Securities Exchange Act Release No. 82377 

(December 21, 2017), 82 FR 61617 (December 28, 

2017) (File Nos. SR–DTC–2017–004; SR–FICC– 

2017–008; SR–NSCC–2017–005) (approving NSCC’s 

Liquidity Risk Management Framework). 

11See Notice of Filing, supra note 4, at 15738– 

39. Qualifying liquid resources include, among 

other things: Cash held either at the central bank 

of issue or at creditworthy commercial banks, and 

assets that are readily available and convertible into 

cash through prearranged funding arrangements, 

such as committed arrangements without material 

adverse change provisions, including lines of credit, 

foreign exchange swaps, and repurchase 

agreements. 17 CFR 240.17Ad–22(a)(14). 

12See Rule 4 (Clearing Fund) and Procedure XV 

(Clearing Fund Formula and Other Matters) of the 

Rules, supra note 9. 

13See Securities Exchange Act Release Nos. 

75730 (August 19, 2015), 80 FR 51638 (August 25, 

2015) (File No. SR–NSCC–2015–802); 82676 

(February 9, 2018), 83 FR 6912 (February 15, 2018) 

(File No. SR–NSCC–2017–807). 

14See Securities Exchange Act Release No. 88146 

(February 7, 2020), 85 FR 8046 (February 12, 2020) 

(File No. SR–NSCC–2019–802). 

15See Securities Exchange Act Release No. 80605 

(May 5, 2017), 82 FR 21850 (May 10, 2017) (File 

Nos. SR–DTC–2017–802; SR–NSCC–2017–802). 

16See Rule 4(A) (Supplemental Liquidity 

Deposits) of the Rules, supra note 9. See also 

Securities Exchange Act Release Nos. 70999 

(December 5, 2013), 78 FR 75413 (December 11, 

2013) (File No. SR–NSCC–2013–02); 71000 

(December 5, 2013), 78 FR 75400 (December 11, 

2013) (File No. SR–NSCC–2013–802). 

17See Rule 4(A), supra note 9. NSCC defines the 

duration of the options expiry periods in its Rules, 

which typically runs from the third Friday of the 

month to the following Tuesday. See id. 

18See Section 2 of Rule 4(A), supra note 9. NSCC 

may use a Provider’s supplemental liquidity deposit 

to satisfy a loss or liability arising only from that 

Provider’s default on its obligations to NSCC. 

Supplemental liquidity deposits are not otherwise 

subject to NSCC’s Loss Allocation Waterfall. See 

Section 13(c) of Rule 4(A), supra note 9. 

19See Section 2 of Rule 4(A), supra note 9. 

Typically, NSCC performs this calculation, at the 

latest, one week prior to the start of the options 

expiry period. 

20See Sections 4 and 9 of Rule 4(A), supra note 

9. 

21See Section 2 of Rule 4(A), supra note 9. See 

also, Notice of Filing, supra note 4, at 15739. 

22See Section 7 of Rule 4(A), supra note 9. 

23See Section 10 of Rule 4(A), supra note 9. 

deposit requirements.3 The proposed 

rule change was published for comment 

in the Federal Register on March 24, 

2021,4 and the Commission has received 

comments in support of the changes 

proposed therein.5 On May 7, 2021, 

pursuant to Section 19(b)(2) of the Act,6

the Commission designated a longer 

period within which to approve, 

disapprove, or institute proceedings to 

determine whether to approve or 

disapprove the proposed rule change.7

On June 17, 2021, NSCC filed Partial 

Amendment No. 1 to the proposed rule 

change, which provided additional 

description of the proposed rule change 

and did not change the substance of the 

proposed rule change, as discussed in 

more detail in Section II.D below. The 

Commission is publishing this notice to 

solicit comments on Partial Amendment 

No. 1 from interested persons and, for 

the reasons discussed below, is 

approving the proposed rule change, as 

modified by Partial Amendment No. 1 

(hereinafter, ‘‘Proposed Rule Change’’), 

on an accelerated basis. 

II. Description of the Proposed Rule 

Change 

A. Background 

As a central counterparty (‘‘CCP’’),8

NSCC occupies an important role in the 

securities settlement system by 

interposing itself between 

counterparties to financial transactions, 

becoming the buyer to each seller and 

seller to each buyer to ensure the 

performance of the contract, thereby 

reducing the risk faced by its Members 9

and contributing to global financial 

stability. NSCC’s liquidity risk 

management plays an integral part in 

NSCC’s ability to perform its role as a 

CCP. If a Member defaults, NSCC, as a 

CCP, would need to complete settlement 

of guaranteed transactions on the failing 

Member’s behalf from the date of default 

through the remainder of the settlement 

cycle (currently two days for securities 

that settle on a regular way basis in the 

U.S. markets). To do so, and to meet its 

related regulatory requirements, NSCC 

seeks to maintain sufficient liquid 

resources in order to meet the potential 

funding required to settle outstanding 

transactions of a defaulting Member in 

a timely manner, as well as to hold 

qualifying liquid resources sufficient to 

meet its minimum liquidity resource 

requirement in each relevant currency 

for which it has payment obligations 

owed to its Members.10

NSCC has a number of default 

liquidity resources that it considers to 

be qualifying liquid resources for the 

purposes of Rule 17Ad–22(a)(14).11

These resources include: (1) Cash 

deposits to the NSCC Clearing Fund; 12

(2) the proceeds of the issuance and 

private placement of (a) short-term, 

unsecured notes in the form of 

commercial paper and extendable notes 

(‘‘Commercial Paper Program’’),13 and 

(b) term debt (‘‘Term Debt Issuance’’); 14

(3) cash that would be obtained by 

drawing on NSCC’s committed 364-day 

credit facility with a consortium of 

banks (‘‘Line of Credit’’); 15 and (4) 

supplemental liquidity deposits, 

collected pursuant to NSCC Rule 4(A), 

as discussed further below.16

B. Current Rules Relating to 

Supplemental Liquidity Deposits 

Currently, NSCC only collects 

supplemental liquidity deposits during 

monthly options expiry periods in order 

to cover the heightened liquidity 

exposure resulting from increased 

trading activity around options 

expiration.17 NSCC only collects 

supplemental liquidity deposits from its 

30 largest Members or group of affiliated 

Members (hereinafter, ‘‘Providers’’).18

NSCC calculates each Provider’s 

supplemental liquidity obligation for an 

upcoming options expiry period using 

an estimate based on NSCC’s highest 

liquidity need and the Provider’s 

settlement activity during the prior 24- 

months.19 Providers, in turn, must fund 

their supplemental liquidity obligations 

two business days prior to the start of 

the options expiry period, which NSCC 

will return seven business days after the 

end of that period.20

In order to ensure NSCC maintains 

adequate liquidity resources throughout 

the options expiry period, Providers 

may voluntarily prefund additional 

supplemental liquidity deposits at the 

start of the period, if it anticipates 

increases in its trading activity, 

compared to its historical activity, will 

create a liquidity shortfall at NSCC.21 In 

the event a Provider fails to provide 

adequate voluntary prefunded deposits, 

NSCC may require the Provider to fund 

additional supplemental liquidity 

deposits if NSCC experiences a resulting 

liquidity shortfall,22 which NSCC may 

hold for up to 90 days.23 The 90-day 

lock-up incentivizes Providers to 

voluntarily prefund their supplemental 

liquidity deposits in order to ensure 

NSCC maintains adequate liquidity 

resources throughout the options expiry 

period. 


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24The description that follows is excerpted from 

the Notice of Filing, supra note 4. 

25See Notice of Filing, supra note 4, at 15740. 

26Under the proposal, Providers will continue to 

be the 30 largest Members or group of affiliated 

Members, but NSCC proposes to simplify how it 

determines the 30 Providers in order to provide 

greater transparency and predictability in its 

determination. The 30 Providers will be determined 

daily and will be based on the Provider’s settlement 

activity during the prior 24-months. NSCC’s 

determination will no longer require a calculation 

of liquidity exposures the Providers presented to 

NSCC based on NSCC’s qualifying liquid resources 

throughout a 24 month lookback period. NSCC will 

continue to make available to each Member daily 

information on NSCC’s liquidity need based on that 

Member’s settlement activity on the previous 

business day. 

27A liquidity shortfall will arise if NSCC’s daily 

liquidity need exceeds its qualifying liquid 

resources, assuming stressed market conditions. 

NSCC will continue to apply stress scenarios in 

determining its total qualifying liquid resources in 

order to anticipate market conditions that could 

cause those resources to be unavailable on that day. 

Because the daily calculation will be done at the 

start of each business day, it will be based on the 

qualifying liquid resources available to NSCC as of 

the end of the prior business day. 

28NSCC’s proposed timing would mirror the 

current requirement that is applied to its Members’ 

Required Fund Deposits (i.e., margin), which is also 

calculated and collected daily, and must be funded 

within one hour of demand. NSCC expects to 

deliver notification of Provider obligations by 

around 8:30 a.m. ET each business day, with 

deposits required by no later than 9:30 a.m. ET. See 

Notice of Filing, supra note 4, at 15741. 

29Because NSCC would recalculate supplemental 

liquidity deposits daily, NSCC will no longer need 

to hold deposits for the extended periods under its 

current Rules. See Notice of Filing, supra note 4, 

at 15742. 

30See Notice of Filing, supra note 4, at 15740. 

31See id. at 15740–41. 

32See id. at 15744. NSCC further states that if its 

other qualifying liquid resources materially 

decrease, it would expect to see an increase in both 

number and amount of supplemental liquidity 

obligations that Providers would have been 

required to fund under the proposed rule. See id. 

at 15744. 

33The alternative pro rata calculation described 

in Section II.C.3 below would not apply to an 

intraday supplemental liquidity call. 

34See Notice of Filing, supra note 4, at 15741. 

35NSCC will retain how it defines the duration 

of the options expiry periods in its Rules. See supra 

note 17. 

36Each business day, NSCC receives information 

regarding projected settlement activity from The 

Options Clearing Corporation (‘‘OCC’’) pursuant to 

a Stock and Futures Settlement Agreement. That 

agreement provides for the clearance and settlement 

of exercises and assignments of options on eligible 

securities or the maturity of eligible stock futures 

contracts through NSCC. See Securities Exchange 

Act Release No. 81260 (July 31, 2017), 82 FR 36484 

(August 4, 2017) (File Nos. SR–NSCC–2017–803; 

SR–OCC–2017–804). In this case, the recalculation 

will be based on the data NSCC receives from OCC 

late Thursday. 

C. Proposed Changes to the Rules 

Relating to Supplemental Liquidity 

Deposits 

As discussed above, NSCC may only 

collect supplemental liquidity deposits 

during monthly options expiry periods 

under its current Rules.24 However, 

NSCC can face sudden liquidity 

shortfalls on any business day, not just 

those business days that fall within 

monthly options expiry periods, 

particularly during volatile market 

conditions unrelated to options 

expiration.25 To address this issue, 

NSCC proposes to change the frequency 

at which it may collect supplemental 

liquidity deposits to each business day, 

based on a daily calculation. This 

proposed approach to collecting 

supplemental liquidity deposits should 

allow NSCC to respond quickly to any 

sudden liquidity shortfalls arising from 

a Provider’s activity, regardless of when 

those shortfalls occur. 

NSCC also proposes the ability to 

collect supplemental liquidity deposits 

on an intraday basis in certain instances 

where sudden intraday increases in 

liquidity risk justify shortening the 

amount of time NSCC is exposed to that 

risk, including a mandatory intraday 

collection in connection with monthly 

options expiry periods. Moreover, NSCC 

proposes to eliminate the up to 90 day 

lock-up period of certain supplemental 

liquidity deposits. Additionally, NSCC 

proposes an alternative pro rata daily 

calculation in the rare event its regular 

daily calculation would inadvertently 

result in collecting supplement liquidity 

deposits from multiple Providers that, 

taken together, would significantly 

exceed NSCC’s liquidity needs on that 

day. 

1. Proposed Daily Calculation of 

Supplemental Liquidity Deposits 

A Provider 26 will be obligated to 

provide a supplemental liquidity 

deposit on each business day in which 

its settlement activity causes a liquidity 

shortfall at NSCC.27 NSCC will provide 

a notice to each Provider of the amount 

of its supplemental liquidity deposit, 

which the Provider will be required to 

fund within one hour of such notice.28

NSCC proposes to return supplemental 

liquidity deposits on the next business 

day,29 except in certain circumstances 

as described in greater detail in Section 

II.C.4. below. 

NSCC states that, under its proposed 

calculation, it will no longer need to 

estimate its liquidity need for a 

Provider’s expected settlement activity 

based on the Provider’s historical 

settlement activity.30 Instead, each 

Provider’s deposit will be calculated 

based on NSCC’s actual liquidity need 

based on the Provider’s daily settlement 

activity in the event the Provider 

defaulted on that day, which NSCC 

believes will provide both NSCC and 

Providers with a more reliable measure 

of the liquidity risks posed to NSCC.31

NSCC provided the Commission with 

the results of an impact study 

comparing the proposal against the 

observed regulatory liquidity needs and 

NSCC’s qualifying liquid resources 

available during the period from 2016 

through 2020. The study assessed both 

pro-forma and hypothetical impacts of 

the proposal under various liquidity 

scenarios. The study also analyzed 

historical trends including the average 

composition and rankings of the top 30 

Providers at NSCC during the 2016 to 

2020 period. Based on the pro-forma/ 

hypothetical impact as well analysis of 

the top Providers, the study’s results 

generally indicate that the proposal 

would continue to allow NSCC to meet 

its regulatory liquidity obligations, and 

the largest Members would continue to 

be the ones affected by supplemental 

liquidity obligations.32

2. Proposed Intraday Supplemental 

Liquidity Calls 

NSCC also proposes to establish 

intraday supplemental liquidity calls, 

which are intended to allow NSCC to 

calculate and collect additional 

supplemental liquidity deposits on an 

intraday basis if a Provider’s increased 

daily activity levels or projected 

settlement activity causes a NSCC 

liquidity shortfall during a given day.33

NSCC believes the proposed intraday 

supplemental liquidity calls will help to 

mitigate increased liquidity exposures 

presented to NSCC on an intraday basis 

in specified circumstances, as discussed 

further below.34

i. Proposed Mandatory Intraday 

Supplemental Liquidity Call During 

Options Expiry Periods 

First, NSCC proposes to establish a 

mandatory monthly intraday 

supplemental liquidity call that is 

calculated and collected, when 

applicable, on the first business day 

(typically a Friday) of an options expiry 

period.35 A Provider’s mandatory 

intraday supplemental liquidity call 

will be the difference between, on the 

one hand, NSCC’s qualifying liquid 

resources and, on the other hand, 

NSCC’s daily liquidity need based on 

the Provider’s settlement activity at the 

start of the business day, recalculated to 

account for both the Provider’s actual 

settlement activity submitted to NSCC 

over the course of the day, and the 

Provider’s projected settlement activity 

in stock options expected to be 

submitted to NSCC.36 Because NSCC’s 

recalculated daily liquidity need will 

not factor in late day trades or other offVerDate Sep<11>2014 22:53 Jun 23, 2021 Jkt 253001 PO 00000 Frm 00211 Fmt 4703 Sfmt 4703 E:\FR\FM\24JNN1.SGM 24JNN1

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37See Notice of Filing, supra note 4, at 15741. For 

example, an affiliated Member may be entitled, 

under NSCC Rules, to liquidity credits based the 

trading activity of its affiliates, who are also 

Members, in order to determine NSCC’s net 

liquidity exposure from the affiliated family of 

Members. 

38See Notice of Filing, supra note 4, at 15741. 

39See id. at 15740. 

40See id. at 15741–42. 

41See id. at 15742. 

42See id. 

43NSCC represents that it has never had two or 

more Providers owe more than $2 billion on a 

calculation date since its adoption of the 

supplemental liquidity deposit Rules in 2013. 

Therefore, NSCC believes this alternative 

calculation would only be available in very limited 

circumstances. See Notice of Filing, supra note 4, 

at 15741. 

44See Notice of Filing, supra note 4, at 15741. 

45See Section 9 of Rule 4, supra note 9. Proposed 

Section 12(a) of Rule 4(A) cross-references to 

Section 9 of Rule 4. 

46See Notice of Filing, supra note 4, at 15742. 

47See Section 7 of Rule 4, supra note 9. Proposed 

Section 10 of Rule 4(A) cross-references to Section 

7 of Rule 4. 

48See Notice of Filing, supra note 4, at 15742. 

setting settlement activity,37 NSCC 

proposes to adjust its recalculated daily 

liquidity need using an estimated 

netting percentage based on each 

Provider’s average percentage of netting 

from its off-setting settlement activity 

observed over the prior 24 months. 

NSCC states that the actual settlement 

activity flowing into NSCC for cash 

settlement of stocks underlying expiring 

options is typically lower than the 

projected settlement activity NSCC 

receives from OCC on the Thursday 

before the start of the options expiry 

period due to late day offsetting trades 

in stock options on that Friday; 

therefore, applying this netting 

percentage should more accurately 

reflect the actual liquidity exposures 

that will be presented to NSCC from the 

Providers.38

Moreover, NSCC proposes to 

eliminate the up to 90 day lock-up 

period of certain supplemental liquidity 

deposits. NSCC will no longer need to 

hold these deposits for longer periods 

because NSCC proposes to use the daily 

calculation and collection of 

supplemental liquidity deposits to help 

ensure NSCC maintains adequate 

liquidity resources each day, including 

throughout options expiry periods.39

ii. Proposed Discretionary Intraday 

Supplemental Liquidity Call Other Than 

During Options Expiry Periods 

Second, NSCC proposes to establish a 

discretionary intraday supplemental 

liquidity call on any business day other 

than the first business day during 

options expiry periods. Under this 

provision, NSCC will have the 

discretion to call for additional 

supplemental liquidity deposits on an 

intraday basis on any such business day 

if a Provider’s increased activity levels 

during that day would cause a liquidity 

shortfall at NSCC. The amount of a 

Provider’s intraday supplemental 

liquidity call, pursuant to NSCC’s 

discretion, would be the difference 

between NSCC’s daily liquidity need, 

recalculated to take into account the 

increase in the Provider’s settlement 

activity during the day, and NSCC’s 

qualifying liquid resources. 

NSCC states that it would collect a 

discretionary intraday call in 

circumstances where NSCC believes it 

should accelerate the collection of a 

Provider’s supplemental liquidity 

obligation because that Provider’s 

intraday settlement activity would cause 

NSCC’s liquidity needs to exceed its 

liquidity resources.40 For example, 

NSCC may impose an intraday 

supplemental liquidity call on a 

Provider if NSCC determines that 

Provider is unlikely to meet its 

projected settlement obligations through 

the settlement cycle due to rapidly 

escalating financial stress.41 NSCC will 

make this determination based on a 

variety of factors, including NSCC’s 

assessment of the Provider’s ability to 

meet its obligations to NSCC (i.e., an 

assessment of the Provider’s 

creditworthiness on a particular 

business day) or estimates of settlement 

activity that could offset settlement 

exposures and are not reflected in 

NSCC’s liquidity estimates.42

3. Proposed Pro Rata Calculation of 

Supplemental Liquidity Deposits 

As a potential alternative to the 

calculation described above, NSCC 

proposes a discretionary pro rata 

calculation that could apply in the event 

two or more Providers each would be 

obligated to provide a supplemental 

liquidity deposit of more than $2 billion 

on a business day pursuant to the 

calculation described above.43 Under 

the proposed alternative, NSCC will 

have the option to allocate, on a pro rata 

basis, its largest liquidity need on a 

business day to all Providers that are 

required to make a supplemental 

liquidity deposit on that day, thereby 

reducing all such Providers’ obligations 

to NSCC on that day. NSCC’s 

determination will be based on the 

market conditions at that time. For 

example, NSCC may determine that, in 

certain market conditions, this 

alternative approach would be 

appropriate to alleviate liquidity 

pressures on all Providers required to 

make a supplemental liquidity deposit 

on that day.44 NSCC states this 

alternative would allow NSCC to use 

this pro rata calculation to sufficiently 

cover its liquidity exposure on that day, 

without requiring that all Providers 

fund the total amount of its calculated 

supplemental liquidity deposit on that 

day. 

4. Proposed Clarifying Changes to the 

Treatment of Supplemental Liquidity 

Deposits 

As described in Section II.C.1 above, 

NSCC proposes to return supplemental 

liquidity deposits, including any 

amount funded pursuant to an intraday 

supplemental liquidity call, on the next 

business day. However, NSCC proposes 

to clarify that, consistent with its 

current Rules regarding excess Clearing 

Fund deposits, it will have the right to 

withhold all or any part of any 

Member’s excess Clearing Fund 

deposits, including supplemental 

liquidity deposits, if that Member has 

been placed on the Watch List pursuant 

to the Rules or if NSCC determines that 

the Member’s anticipated activities in 

the near future may reasonably be 

expected to be materially different than 

its activities of the recent past.45 NSCC 

states that, while the proposed 

provision would not change NSCC’s 

rights with respect to these funds, it 

would provide Members with greater 

transparency into how supplemental 

liquidity deposits will be treated under 

Rule 4.46

NSCC further proposes that it will 

hold a retired Provider’s supplemental 

liquidity deposits for 30 calendar days 

after any of the Provider’s open 

transactions have settled and obligations 

have been satisfied,47 rather than return 

such deposits on the next business day. 

NSCC states that the proposed provision 

will help protect NSCC from liquidity 

risks presented by open transactions in 

the days following a firm’s retirement 

and would align the treatment of these 

funds with the treatment of a retired 

Member’s Required Fund Deposits.48

Additionally, NSCC proposes to 

simplify and clarify NSCC’s right to 

debit Providers’ accounts at NSCC if a 

Provider fails to meet its supplemental 

liquidity obligations, and NSCC’s 

obligation to make available to 

Providers the amount of the Daily 

Liquidity Need that NSCC would have 

had in the event the Provider defaulted 

on the previous business day. NSCC 

states that, while the proposed 

miscellaneous changes will not 

significantly alter the structure of these 

provisions, they will provide 

transparency to Providers regarding 


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49See id. 

50 15 U.S.C. 78s(b)(2)(C). 

51 15 U.S.C. 78q–1(b)(3)(F). 

52 17 CFR 240.17Ad–22(e)(7)(i) and (ii). 

53 15 U.S.C. 78q–1(b)(3)(F). 

their rights and obligations under the 

Rules.49

D. Partial Amendment No. 1 

On June 17, 2021, NSCC filed Partial 

Amendment No. 1 to revise its 

disclosure, pursuant to Item 3(a) of 

Form 19b–4, relating to the purpose of 

the Proposed Rule Change by including 

the following language at the beginning 

of its Item 3(a) disclosure: 

As described in greater detail below, NSCC 

adopted the SLD requirements in 2013 to 

establish supplemental liquidity deposits to 

the Clearing Fund designed to ensure that 

NSCC has adequate liquidity resources to 

meet its liquidity needs during monthly 

options expiry settlement periods when 

NSCC observes significant increases in its 

liquidity exposures. Since that time, NSCC 

has continued to strengthen its liquidity risk 

management by diversifying its sources of 

qualifying liquid resources. These efforts are 

aimed at, for example, managing the risk that 

any one of those sources is reduced. 

In connection with these ongoing efforts, 

NSCC is proposing changes to the SLD 

requirements. As described in greater detail 

in this filing, the proposed changes include: 

(1) Calculating and collecting, when 

applicable, SLD on each Business Day, rather 

than only during the monthly options 

settlement periods. 

(2) calculating SLD based on observed 

Member activity, rather than based on 

historical and forecasted settlement activity. 

(3) adopting an intraday SLD calculation 

and collection, when applicable, on the first 

Business Day of the monthly options 

settlement periods based on additional 

exposures that are presented by options 

activity submitted after the start of day. 

(4) eliminating the 90-day holding period 

for certain SLD. 

(5) adopting a discretionary, alternative pro 

rata calculation of Members’ SLD 

requirements that would apply in certain 

circumstances and allow NSCC to allocate its 

largest liquidity need on a Business Day 

among Members that are required to pay 

SLD, rather than collect separate SLD from 

each of those Members. 

In Partial Amendment No. 1, NSCC 

clarifies its disclosure describing the 

purpose of the proposal, pursuant to 

Item 3(a) of Form 19b–4. NSCC does 

not, however, make changes to the 

proposal itself, including the proposed 

text of the Rules that was provided as 

Exhibit 5 to the Proposed Rule Change. 

Therefore, Partial Amendment No. 1, 

NSCC does not alter the manner in 

which the Proposed Rule Change would 

nor does it alter the manner in which 

the Proposed Rule Change will affect its 

Members or other interested persons. 

III. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 50

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 Act and the 

rules and regulations thereunder 

applicable to such organization. After 

careful consideration, the Commission 

finds that the Proposed Rule Change is 

consistent with the requirements of the 

Act and the rules and regulations 

applicable to NSCC. In particular, the 

Commission finds that the Proposed 

Rule Change is consistent with Section 

17A(b)(3)(F) 51 of the Act and Rule 

17Ad–22(e)(7) 52 thereunder. 

A. Consistency With Section 

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

Section 17A(b)(3)(F) 53 of the Act 

requires, in part, that the rules of a 

clearing agency, such as NSCC, be 

designed to, among other things, 

promote the prompt and accurate 

clearance and settlement of securities 

transactions and assure the safeguarding 

of securities and funds which are in the 

custody or control of the clearing agency 

or for which it is responsible. The 

Commission finds that the Proposed 

Rule Change is consistent with Section 

17A(b)(3)(F) of the Act for the reasons 

stated below. 

As described above in Section II.B, 

NSCC can face sudden liquidity 

shortfalls on any business day, 

particularly during volatile market 

conditions, which can be unrelated to 

options expiration. As a CCP, it is 

imperative that NSCC maintains 

adequate resources to satisfy liquidity 

needs arising from its settlement 

obligations, including in the event of a 

Member default. However, NSCC 

currently may only collect supplemental 

liquidity deposits during monthly 

options expiry periods. As described 

above in Section II.C.1, the Proposed 

Rule Change is designed to allow NSCC 

to respond quickly to sudden liquidity 

shortfalls that may arise, regardless of 

timing, by collecting supplemental 

liquidity deposits based on a daily 

calculation, instead of being limited to 

only the monthly options expiration 

period. The ability to calculate and 

collect supplemental liquidity deposits, 

as applicable, on a daily basis should 

help NSCC more accurately manage its 

daily liquidity exposures based on 

Members’ actual activity. Moreover, the 

proposal would allow NSCC to 

determine the amount of supplemental 

liquidity deposits based on Members’ 

actual activity, providing more precise 

and, potentially, lower charges for 

Members than provided under the 

current methodology, which uses 

estimates based on a look-back period 

and can, on occasion, result in NSCC 

collecting more resources than needed 

to cover its exposure. 

Further, as described above in Section 

II.C.3, the proposal will provide NSCC 

with additional flexibility over the 

timing and amount of collections. First, 

establishing the mandatory intraday 

supplemental liquidity calls on the first 

business day of the monthly options 

expiry periods should help NSCC 

continue to manage the potential 

increased liquidity exposures that may 

arise from options settlement-related 

activity by allowing it to accelerate the 

collection of supplemental liquidity 

deposits on that day, as opposed to 

waiting for the proposed daily 

collection that would occur on the 

morning of the following business day. 

Second, the proposed discretionary 

intraday supplemental liquidity calls 

should collect additional supplemental 

liquidity deposits from Members whose 

activity outside of the monthly options 

expiry periods may cause a sudden 

increase in NSCC’s liquidity needs on 

an overnight basis. Moreover, as 

described above in Section II.C.3, the 

proposed alternative pro rata calculation 

that NSCC may apply in certain 

circumstances will provide NSCC the 

flexibility to determine the total amount 

collected on a business day, while 

continuing to collect sufficient liquidity 

to complete end-of-day settlement in the 

event the Provider with the largest 

payment obligation defaults. 

Additionally, as described above in 

Section II.C.4, the proposed clarifying 

changes would make the rights and 

obligations of both NSCC and its 

Members under the Rules more 

transparent and easier to understand. A 

clearer rule supports the ability of 

Members to meet their supplemental 

liquidity deposit requirements and 

understand how NSCC will treat such 

deposits, and the liquidity provided to 

NSCC through supplemental liquidity 

deposits would allow it to complete 

end-of-day settlement in the event the 

Provider with the largest payment 

obligation defaults. 

For the reasons stated above, the 

Commission finds the Proposed Rule 

Change is designed to allow NSCC to 

address potential sudden liquidity 

exposures that may arise on a daily 

basis. The daily calculation and 

collection of supplemental liquidity 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 86, No. 119 / Thursday, June 24, 2021 / Notices 33419 

54 15 U.S.C. 78q–1(b)(3)(F). 

55 17 CFR 240.17Ad–22(e)(7)(i) and (ii). 

56 17 CFR 240.17Ad–22(e)(7)(i). 

57 17 CFR 240.17Ad–22(e)(7)(ii). For purposes of 

Rule 17Ad–22(e)(7)(ii), ‘‘qualifying liquid 

resources’’ are defined in Rule 17Ad–22(a)(14) as 

including, in part, cash held either at the central 

bank of issue or at creditworthy commercial banks. 

17 CFR 240.17Ad–22(a)(14). 

58See supra note 32 and accompanying text. 

59See Securities Exchange Act Release Nos. 

79528 (December 12, 2016), 81 FR 91232 (December 

16, 2016) (File Nos. SR–DTC–2016–007, SR–FICC– 

2016–005, SR–NSCC–2016–003); 84949 (December 

21, 2018), 83 FR 67779 (December 31, 2018) (File 

Nos. SR–DTC–2018–012, SR–FICC–2018–014, SR– 

NSCC–2018–013). 

60 17 CFR 240.17Ad–22(a)(14). 

61 17 CFR 240.17Ad–22(e)(7)(i). 

62 17 CFR 240.17Ad–22(e)(7)(ii). 

63 17 CFR 240.17Ad–22(e)(7). 

deposits should allow NSCC to 

effectively cover those liquidity 

exposures and, should help NSCC 

ensure it can complete settlement for all 

its Members in the event one Member 

defaults, which the Commission 

believes should promote the prompt and 

accurate clearance and settlement of 

securities transactions. Moreover, the 

Commission believes that enhancing 

NSCC’s ability to complete settlement in 

the event of a Member default should 

help avoid the potential for loss 

mutualization among the non-defaulting 

members and potential impacts on the 

broader financial system, which is 

consistent with assuring the 

safeguarding of securities and funds 

which are in its custody or control. 

Accordingly, the Commission finds the 

changes proposed in the Proposed Rule 

Change are consistent with Section 

17A(b)(3)(F) of the Act.54

B. Consistency With Rule 17Ad– 

22(e)(7)(i) and (ii) 

The Commission finds the changes 

proposed in the Proposed Rule Change 

are consistent with Rules 17Ad– 

22(e)(7)(i) and (ii), each promulgated 

under the Act,55 for the reasons 

described below. 

Rule 17Ad–22(e)(7)(i) under the Act 

requires that a covered clearing agency 

establish, implement, maintain and 

enforce written policies and procedures 

reasonably designed to maintain 

sufficient liquid resources at the 

minimum in all relevant currencies to 

effect same-day and, where appropriate, 

intraday and multiday settlement of 

payment obligations with a high degree 

of confidence under a wide range of 

foreseeable stress scenarios that 

includes, but is not limited to, the 

default of the participant family that 

would generate the largest aggregate 

payment obligation for the covered 

clearing agency in extreme but plausible 

market conditions.56 Rule 17Ad– 

22(e)(7)(ii) under the Act requires that a 

cover clearing agency establish, 

implement, maintain and enforce 

written policies and procedures 

reasonably designed to hold qualifying 

liquid resources sufficient to meet the 

minimum liquidity resource 

requirement under Rule 17Ad– 

22(e)(7)(i) in each relevant currency for 

which the covered clearing agency has 

payment obligations owed to its clearing 

members.57

As described above in Sections II.C.1 

and 2, the Proposed Rule Change would 

help strengthen NSCC’s ability to 

maintain sufficient liquid resources to 

complete end-of-day settlement in the 

event of the Member default by allowing 

NSCC to calculate and collect, when 

applicable, supplemental liquidity 

deposits every business day, or on an 

intraday basis, from those Members that 

pose the largest liquidity exposures to 

NSCC on that day. These resources 

would be available to NSCC to complete 

end-of-day settlement in the event of the 

default of a Member. Moreover, the 

Commission has reviewed and 

considered the impact study results 

provided by NSCC comparing the 

proposal against the observed regulatory 

liquidity needs and NSCC’s qualifying 

liquid resources available during the 

period from 2016 through 2020, to 

assess both pro-forma and hypothetical 

impacts of the proposal under various 

liquidity scenarios,58 and finds that 

these results generally indicated that the 

proposal would continue allow NSCC to 

meet its regulatory liquidity obligations. 

In addition, deposits made to satisfy 

supplemental liquidity deposit 

obligations are currently and will 

continue to be required to be made as 

cash deposits, which will continue to be 

held by NSCC at either its cash deposit 

account at the Federal Reserve Bank of 

New York, at a creditworthy commercial 

bank, or in other investments pursuant 

to NSCC’s Clearing Agency Investment 

Policy.59 Therefore, supplemental 

liquidity deposits would continue to be 

considered a qualifying liquid resource, 

as defined by Rule 17Ad–22(a)(14),60

and would support NSCC’s ability to 

hold qualifying liquid resources 

sufficient to meet the minimum 

liquidity resource requirement under 

Rule 17Ad–22(e)(7)(i),61 as required by 

Rule 17Ad–22(e)(7)(ii).62

Accordingly, the Commission finds 

that implementation of the proposed 

amendments to NSCC’s supplemental 

liquidity deposit requirements would be 

consistent with Rule 17Ad–22(e)(7)(i) 

and (ii) under the Act.63

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as modified by Partial 

Amendment No. 1, 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– 

NSCC–2021–002 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–NSCC–2021–002. 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 principal 

office of NSCC and on DTCC’s website 

(http://dtcc.com/legal/sec-rulefilings.aspx). 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–NSCC– 

2021–002 and should be submitted on 

or before July 15, 2021. 


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33420 Federal Register / Vol. 86, No. 119 / Thursday, June 24, 2021 / Notices 

64 15 U.S.C. 78s(b)(2). 

65 15 U.S.C. 78q–1(b)(3)(F) 

66 15 U.S.C. 78s(b)(2). 

67 15 U.S.C. 78q–1. 

68 15 U.S.C. 78s(b)(2). 

69 In approving the Proposed Rule Change, the 

Commission considered the proposals’ impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

70 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 92014 (May 

25, 2021), 86 FR 29334 (June 1, 2021) (SR–FICC– 

2021–003) (‘‘Notice’’). FICC also filed the proposal 

contained in the Proposed Rule Change as advance 

notice SR–FICC–2021–801 (‘‘Advance Notice’’) with 

the Commission pursuant to Section 806(e)(1) of the 

Dodd-Frank Wall Street Reform and Consumer 

Protection Act entitled the Payment, Clearing, and 

Settlement Supervision Act of 2010 (‘‘Clearing 

Supervision Act’’). 12 U.S.C. 5465(e)(1); 17 CFR 

240.19b–4(n)(1)(i). Notice of filing of the Advance 

Notice was published for comment in the Federal 

Register on June 3, 2021. Securities Exchange Act 

Release No. 92019 (May 27, 2021), 86 FR 29834 

(June 3, 2021) (SR–FICC–2021–801) (‘‘Notice of 

Filing’’). The proposal contained in the Proposed 

Rule Change and the Advance Notice shall not take 

effect until all regulatory actions required with 

respect to the proposal are completed. 

4 15 U.S.C. 78s(b)(2). 

5 Id. 

6 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

V. Accelerated Approval of the 

Proposed Rule Change, as Modified by 

Partial Amendment No. 1 

The Commission finds good cause, 

pursuant to Section 19(b)(2) of the 

Act,64 to approve the proposed rule 

change prior to the 30th day after the 

date of publication of Partial 

Amendment No. 1 in the Federal 

Register. As discussed in Section II.D 

above, in Partial Amendment No. 1, 

NSCC amends its Form 19b–4, Item 3(a) 

disclosure to provide additional 

description of the purpose of the 

Proposed Rule Change, and Partial 

Amendment No. 1 does change the 

substance of the proposal, the proposed 

text of the Rules that was provided as 

Exhibit 5 to the Proposed Rule Change, 

the manner in which the Proposed Rule 

Change will operate, or the manner in 

which the Proposed Rule Change will 

affect its Members or other interested 

persons. 

Furthermore, as discussed in Section 

III.A above, the Commission believes 

that the Proposed Rule Change, as 

modified by Partial Amendment No. 1, 

should help NSCC ensure it can 

complete settlement for all its Members 

in the event one Member defaults, 

which the Commission believes should 

promote the prompt and accurate 

clearance and settlement of securities 

transactions, consistent with Section 

17A(b)(3)(F).65 Therefore, the 

Commission believes the nature of the 

changes in Partial Amendment No. 1 

and NSCC’s intended enhancements to 

its daily liquidity risk management 

warrants accelerated approval of the 

Proposed Rule Change. Accordingly, the 

Commission finds good cause for 

approving the Proposed Rule Change, as 

modified by Partial Amendment No. 1, 

on an accelerated basis, pursuant to 

Section 19(b)(2) of the Act.66

VI. Conclusion 

On the basis of the foregoing, the 

Commission finds that the Proposed 

Rule Change is consistent with the 

requirements of the Act and in 

particular with the requirements of 

Section 17A of the Act 67 and the rules 

and regulations promulgated 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 68 that 

Proposed Rule Change, as modified by 

Partial Amendment No. 1, SR–NSCC– 

2021–002, be, and hereby is, Approved 

on an accelerated basis.69 70

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.70

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–13413 Filed 6–23–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92185; File No. SR–FICC– 

2021–003] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Designation of Longer Period for 

Commission Action on a Proposed 

Rule Change To Add the Sponsored 

GC Service and Make Other Changes 

June 15, 2021. 

On May 12, 2021, Fixed Income 

Clearing Corporation (‘‘FICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) proposed 

rule change SR–FICC–2021–003 

(‘‘Proposed Rule Change’’) pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder.2 The Proposed Rule 

Change was published for comment in 

the Federal Register on June 1, 2021.3

The Commission has received no 

comment letters on the Proposed Rule 

Change. 

Section 19(b)(2) of the Act 4 provides 

that, within 45 days of the publication 

of notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for the 

Proposed Rule Change is July 16, 2021. 

The Commission is extending the 45- 

day period for Commission action on 

the Proposed Rule Change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the Proposed 

Rule Change so that it has sufficient 

time to consider and take action on the 

Proposed Rule Change. 

Accordingly, pursuant to Section 

19(b)(2) of the Act 5 and for the reasons 

stated above, the Commission 

designates August 30, 2021, as the date 

by which the Commission should either 

approve or disapprove the Proposed 

Rule Change SR–FICC–2021–003. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–13287 Filed 6–23–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92180; File No. SR– 

NASDAQ–2021–044] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend 

Equity 4, Rules 4702 and 4703 in Light 

of Planned Changes to the System 

June 15, 2021. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on June 4, 

2021, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 


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