Federal Register / Vol. 75, No. 214 / Friday, November 5, 2010 / Notices 68393 

7OCC believes the approach currently used to 

assess the impact of collateral substitutions and 

withdrawals represents an improvement over that 

outlined in File No. SR–OCC–2007–20. 

Interpretation and Policy .01 under Rule 608 

generally provides that OCC may specify 

procedures from time-to-time to assess the impact 

of collateral withdrawals and substitutions. 

8Rule 604(f) provides that, in lieu of the 

valuations provided for in Rule 604, OCC may elect 

to value any or all margin assets in the form of 

securities pursuant to Rule 601. 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 15 U.S.C. 78q–1. 

11 15 U.S.C. 78s(b)(2). 

12 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

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

13 17 CFR 200.30–3(a)(12). 

and is determined by approximating the 

change in margin requirement caused by 

depositing or withdrawing a particular 

security from the Clearing Member’s 

account based on the risk characteristics 

of that security and its consequent 

assessed value. OCC believes this 

process will provide a more accurate 

projection of the margin impact of 

collateral withdrawals and substitutions 

on a Clearing Member’s account. This 

process is already used to analyze the 

impact of substitutions and withdrawals 

of equity collateral within the STANS 

Monte Carlo simulations.7

OCC’s Rule 601, ‘‘Margin 

Requirements,’’ already provides that 

margin assets in the form of securities 

may be incorporated into the Monte 

Carlo calculations as an alternative to 

valuing such assets under Rule 604, 

‘‘Form of Margin Assets.’’ In connection 

with incorporating common stocks and 

ETFs into the STANS calculation, OCC 

adopted Interpretation and Policy .06 

under Rule 601 to clarify that margin 

assets in the form of common stocks and 

ETFs would be included in the Monte 

Carlo simulations described in Rule 601 

for purposes of determining the 

minimum expected liquidating value of 

an account with other margin assets 

being valued as provided for under Rule 

604.8 OCC is now broadening the 

interpretation to provide that OCC may 

designate those margin assets which if 

deposited into a Clearing Member’s 

account will be valued as provided in 

Rule 601 rather than Rule 604. This 

change is intended to facilitate OCC’s 

adoption of certain government 

securities into the STANS margin 

calculation process. 

III. Discussion 

Section 17A(b)(3)(F) 9 requires, among 

other things, that the rules of a clearing 

agency are designed to safeguard 

securities and funds in the clearing 

agency’s possession or control or for 

which it is responsible. This requires 

OCC to have the ability to meet its 

settlement obligations following a 

member’s default. It is therefore 

necessary that OCC have an effective 

methodology for calculating margin 

requirements that are sufficient to 

enable OCC to complete settlement in 

the event a member becomes insolvent 

or otherwise fails to meet its obligations 

to OCC. The Commission believes that 

the changes OCC is making to include 

government securities within the 

STANS risk management methodology 

should better enable OCC to fulfill its 

safeguarding obligations under the Act 

and therefore is consistent with the Act. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the 

Act 10 and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,11 that the 

proposed rule change (File No. SR– 

OCC–2010–14) be, and hereby is, 

approved.12

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28057 Filed 11–4–10; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Data Collection Available for Public 

Comments and Recommendations 

ACTION: Notice and request for 

comments. 

SUMMARY: In accordance with the 

Paperwork Reduction Act of 1995, this 

notice announces the Small Business 

Administration’s intentions to request 

approval on a new and/or currently 

approved information collection. 

DATES: Submit comments on or before 

January 4, 2011. 

ADDRESSES: Send all comments 

regarding whether these information 

collections are necessary for the proper 

performance of the function of the 

agency, whether the burden estimates 

are accurate, and if there are ways to 

minimize the estimated burden and 

enhance the quality of the collections, to 

A. B. McConnell, Jr., Chief 504 Program 

Branch, Office of Financial Assistance, 

Small Business Administration, 409 3rd 

Street, 8th Floor, Washington, DC 

20416. 

FOR FURTHER INFORMATION CONTACT: A. 

B. McConnell, Jr., Chief of 504 Branch, 

Office of Financial Assistance, 202– 

205–7238, Andrew.mcconnell@sba.gov; 

Curtis Rich, Management Analyst, 202– 

205–7030 curtis.rich@sba.gov. 

SUPPLEMENTARY INFORMATION: The 

information collected through these 

forms from the small business 

applicants and participating lenders 

will be used to determine eligibility and 

to properly evaluate the merits of each 

loan request based on reasonable and 

customary underwriting criteria such as 

character, capacity, credit collateral, etc. 

This information is collected for the 

purpose of extending credit under the 

504 loan program. 

Title: U.S. Small Business 

Administration Application for Section 

504 Loan. 

Description of Respondents: 504 

Lenders. 

Form Number: SBA Form 1244. 

Annual Responses: 6,800. 

Annual Burden: 15,735. 

Title: Eligibility Information Required 

for 504 Submission (non PCLP). 

Description of Respondents: 504 

Lenders. 

Form Number: SBA Form 2415. 

Annual Responses: 5,100. 

Annual Burden: 4,675. 

Title: PCLP Quarterly Loan Loss 

Reserve Report and PCLP Guarantee 

Request. 

Description of Respondents: 504 

Lenders. 

Form Number: SBA Forms 2233, 2234 

(Part A), 2234 (Part B), 2234 (Part C) 

(Note: SBA Form 2234 (Part C) is the 

only form being revised). 

Annual Responses: 1,700. 

Annual Burden: 1,558. 

Title: Servicing Agent Agreement. 

Description of Respondents: 504 

Lenders. 

Form Number: SBA Form 1506. 

Annual Reponses: 7,830. 

Annual Burden: 7, 830. 

Curtis B. Rich, 

Acting Chief, Administrative Information 

Branch. 

[FR Doc. 2010–27925 Filed 11–4–10; 8:45 am] 

BILLING CODE P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 12366 and # 12367] 

Puerto Rico Disaster # PR–00011 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

mstockstill on DSKH9S0YB1PROD with NOTICES