Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / Notices 68747 

14 17 CFR 200.30–3(a)(12). 

1 12 U.S.C. 5465(e)(2). 

2 17 CFR 240.19b–4(n)(1)(i). 3 12 U.S.C. 5465(e)(2). 

their processes and the information 

provided during the launch of an IPO. 

Lastly, the change does not restrict the 

ability of market participants to 

participate in the IPO Halt Cross in any 

respect, and therefore does [sic] impose 

any burden on competition among 

market participants. 

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 written 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 (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) By order 

approve or disapprove such 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– 

NASDAQ–2014–100 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2014–100. 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 Web site (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 Web site 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 

offices of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2014–100, and should be 

submitted on or before December 9, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27189 Filed 11–17–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73579; File No. SR–OCC– 

2014–807] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of an Emergency Change to OCC’s 

Procedures To Resize the Clearing 

Fund in Response to Market 

Conditions 

November 12, 2014. 

Pursuant to Section 806(e)(2) of Title 

VIII of the Dodd-Frank Wall Street 

Reform and Consumer Protection Act, 

entitled Payment, Clearing, and 

Settlement Supervision Act of 2010 

(‘‘Payment, Clearing and Settlement 

Supervision Act’’) 1 and Rule 19b– 

4(n)(1)(i) under the Securities Exchange 

Act of 1934 (‘‘Act’’),2 notice is hereby 

given that on October 16, 2014, The 

Options Clearing Corporation (‘‘OCC’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

emergency notice as described in Items 

I and II below, which Items have been 

prepared by OCC. The Commission is 

publishing this notice to solicit 

comments on the emergency notice from 

interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Emergency 

Notice 

This notice is filed by OCC in 

connection an increase in the size of 

OCC’s Clearing Fund that it has 

implemented on an emergency basis 

pursuant to Section 806(e)(2) of the 

Payment, Clearing, and Settlement 

Supervision Act. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Emergency Notice 

In its filing with the Commission, 

OCC included statements concerning 

the purpose of and basis for the advance 

notice and discussed any comments it 

received on the advance notice. 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 and B below, of the most 

significant aspects of these statements. 

(A) Clearing Agency’s Statement on 

Comments on the Emergency Notice 

Received From Members, Participants or 

Others 

Written comments were not and are 

not intended to be solicited with respect 

to the emergency notice and none have 

been received. 

(B) Emergency Notices Filed Pursuant to 

Section 806(e)(2) of the Payment, 

Clearing and Settlement Supervision 

Act 

Description of Change 

Emergency Notice 

This notice is being filed in 

connection with an emergency waiver of 

the provision of OCC’s Rules calling for 

monthly adjustments of its Clearing 

Fund that would otherwise have 

required an advance notice under 

Section 806(e)(1) of the Payment, 

Clearing and Settlement Supervision 

Act. Pursuant to Section 806(e)(2) of the 

Payment, Clearing, and Settlement 

Supervision Act, a designated financial 

market utility such as OCC may 

implement a change that would 

otherwise require an advance notice if it 

determines that an emergency exists and 

immediate implementation is necessary 

to continue to provide services in a safe 

and sound manner.3 For the reasons 

discussed below, OCC believes that the 

change was appropriate under this 

framework, and OCC is now filing this 

emergency notice in accordance with 


tkelley on DSK3SPTVN1PROD with NOTICES
68748 Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / Notices 

4 12 U.S.C. 5465(e)(2)(B), 12 U.S.C. 5465(e)(2)(C). 

5 17 CFR 240.17Ad–22(b)(3). 

6See, Securities Exchange Act Release No. 72752 

(August 4, 2014), 79 FR 46490 (August 8, 2014) 

(SR–OCC–2014–17). See also, Securities Exchange 

Act Release No. 72804 (August 11, 2014), 79 FR 

48276 (August 15, 2014) (SR–OCC–2014–804). 

7See Securities Exchange Act Release No. 71571 

(February 19, 2014), 79 FR 10581 (February 25, 

2014) (SR–OCC–2013–23). As noted in the 

Commission’s approval order for that rule change, 

the change generally aligned OCC’s authority in this 

area with the authority of other registered clearing 

agencies that already had similar rules allowing 

them in comparable circumstances to waive or 

suspend their rules or extend the time fixed thereby 

for the performance of any act or acts. 

8 12 U.S.C. 5464(b)(1). 

9 12 U.S.C. 5465(e)(2). 

10 12 U.S.C. 5464(b)(1). 

11See 12 U.S.C. 5465(e)(2)(D), 12 U.S.C. 5464(a). 

12 17 CFR 240.19b–4(n). 

the requirements under Sections 

806(e)(2)(B) and (C) of the Payment, 

Clearing and Settlement Supervision 

Act.4

Sizing of the Clearing Fund 

Under Commission Rule 17Ad– 

22(b)(3), OCC is obligated to maintain 

sufficient financial resources to 

withstand, at a minimum, a default by 

the Clearing Member Group to which 

OCC has the largest exposure in extreme 

but plausible market conditions.5 As 

part of OCC’s ongoing compliance with 

this obligation, it readjusts the size of its 

Clearing Fund monthly pursuant to 

OCC’s Rule 1001(a). Under Rule 1001(a), 

the monthly readjustment is based upon 

daily calculations by OCC during the 

preceding month of the size of the 

Clearing Fund that would be necessary, 

within certain confidence levels, to 

protect OCC from loss under simulated 

default scenarios. Recent increased 

volatility in the financial markets has 

affected these calculations such that 

OCC’s daily results indicate that the size 

of the Clearing Fund should be 

increased to address the potential risk 

that it could be underfunded in the 

event of a Clearing Member default. 

OCC recently proposed a rule change 

and advance notice that would permit 

the Clearing Fund to be resized intramonth in the event that the five-day 

rolling average of projected draws 

against the Clearing Fund are 150% or 

more of its then current size.6 Although 

that proposal remains pending, OCC 

calculates that the recent increase in 

market volatility would have caused 

that proposed threshold to be exceeded 

as of October 15, 2014 and determined 

that an intra-month increase was 

necessary to minimize the risk of an 

underfunding of the Clearing Fund. 

Nature of the Emergency and Reasons 

the Clearing Fund Resizing was 

Necessary 

To provide OCC with the necessary 

flexibility to respond to these dynamic 

market conditions and increase the size 

of its Clearing Fund prior to the next 

resizing scheduled to take place on the 

first business day in November, OCC 

has exercised certain emergency powers 

in Article IX, Section 14 of its By-Laws. 

In emergency circumstances and subject 

to certain conditions, that authority 

permits OCC’s Board of Directors, 

Executive Chairman or President to 

waive or suspend its By-Laws, Rules, 

policies and procedures or any other 

rules issued by OCC or extend the time 

fixed thereby for the doing of any act or 

acts.7 Consistent with that authority, 

OCC’s Executive Chairman on October 

15, 2014 determined to waive the 

provisions in the second sentence of 

Rule 1001(a) under which the Clearing 

Fund is readjusted monthly based upon 

an average of the daily calculations 

performed by OCC during the preceding 

calendar month. To respond to the 

potential risk under prevailing market 

conditions that the Clearing Fund could 

be underfunded, which could affect 

OCC’s ability to continue to facilitate 

prompt and accurate clearance and 

settlement and to operate in a safe and 

sound manner, OCC increased the size 

of the Clearing Fund for the remainder 

of October 2014 as is otherwise 

provided for in Rule 1001(a). 

Accordingly, the original Clearing Fund 

sizing calculation for October 2014 of 

approximately $3.8 billion was 

suspended by OCC and the size of the 

Clearing Fund was reestablished in an 

amount of approximately $5.6 billion. 

The Executive Chairman consulted with 

the Risk Committee of OCC’s Board of 

Directors and senior staff of the 

Commission before making this 

decision. Senior staff of the U.S. 

Commodity Futures Trading 

Commission was also informed. 

Anticipated Effect on and Management 

of Risk 

Overall, the increase in the size the 

Clearing Fund reduces the risks to OCC, 

its Clearing Members and the options 

market in general because it provides 

OCC with proper flexibility under 

current market conditions to establish a 

Clearing Fund size that OCC believes 

would be sufficient to protect against 

losses under current market conditions 

for a period of not more than 30 

calendar days as specified in Article IX, 

Section 14(c). The change allowed OCC 

to increase the overall size of its 

Clearing Fund as a result of a projected 

increase in potential draws. 

Accordingly, the change makes it less 

likely that the Clearing Fund will be 

insufficient should OCC need to use it 

to manage a Clearing Member default. 

The change therefore reduces OCC’s 

overall level of risk and facilitates its 

management of risk. 

Consistency With the Payment, Clearing 

and Settlement Supervision Act 

OCC believes that the increase in the 

total size of the Clearing Fund was 

consistent with Sections 805(b)(1) 8 and 

806(e)(2) 9 of the Payment, Clearing and 

Settlement Supervision Act. The change 

promotes robust risk management 10 by 

providing OCC with an amount of 

financial resources it believes would be 

sufficient to protect OCC against loss in 

an event of default. The change was 

appropriate on an emergency basis 

because OCC determined through daily 

calculations regarding the sufficiency of 

the Clearing Fund that increased 

financial market volatility represented a 

potential risk that the Clearing Fund 

could be underfunded if an event of 

default occurred. The determination to 

readjust the size of the Clearing Fund as 

described above was therefore necessary 

and advisable for the protection of OCC 

and in the public interest to ensure that 

OCC’s Clearing Fund is sufficient for 

OCC to be able to provide its services in 

a safe and sound manner. 

III. Date of Effectiveness of the Advance 

Notice and Timing for Commission 

Action 

OCC implemented a proposed change 

that otherwise would be required to be 

filed as an advance notice because OCC 

determined that (i) an emergency 

existed and (ii) immediate 

implementation was necessary for OCC 

to continue to provide its services in a 

safe and sound manner. The 

Commission may require modification 

or rescission of the proposed change if 

it finds it is not consistent with the 

purposes of the Payment, Clearing and 

Settlement Supervision Act or any 

applicable rules, orders, or standards 

prescribed under Section 805(a) of the 

Payment, Clearing and Settlement 

Supervision Act.11

Pursuant to Rule 19b–4(n) under the 

Act,12 OCC shall post notice on its Web 

site of proposed changes that are 

implemented. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing. 

Comments may be submitted by any of 

the following methods: 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 222 / Tuesday, November 18, 2014 / Notices 68749 

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–2014–807 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–2014–807. 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 Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the emergency notice 

that are filed with the Commission, and 

all written communications relating to 

the emergency notice between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site 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 OCC. All comments received 

will be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–OCC– 

2014–807 and should be submitted on 

or before December 9, 2014. 

By the Commission. 

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27211 Filed 11–17–14; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Reporting and Recordkeeping 

Requirements Under OMB Review 

AGENCY: Small Business Administration. 

ACTION: 30-Day notice. 

SUMMARY: The Small Business 

Administration (SBA) is publishing this 

notice to comply with requirements of 

the Paperwork Reduction Act (PRA) (44 

U.S.C. Chapter 35), which requires 

agencies to submit proposed reporting 

and recordkeeping requirements to 

OMB for review and approval, and to 

publish a notice in the Federal Register 

notifying the public that the agency has 

made such a submission. This notice 

also allows an additional 30 days for 

public comments. 

DATES: Submit comments on or before 

December 18, 2014. 

ADDRESSES: Comments should refer to 

the information collection by name and/ 

or OMB Control Number and should be 

sent to: Agency Clearance Officer, Curtis 

Rich, Small Business Administration, 

409 3rd Street SW., 5th Floor, 

Washington, DC 20416; and SBA Desk 

Officer, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, New 

Executive Office Building, Washington, 

DC 20503. 

FOR FURTHER INFORMATION CONTACT: 

Curtis Rich, Agency Clearance Officer, 

(202) 205–7030 curtis.rich@sba.gov. 

SUPPLEMENTARY INFORMATION: The 

requested information is submitted by 

homeowners or renters when applying 

for federal financial assistance (loans) to 

help in their recovery from a declared 

disaster. SBA uses the information to 

determine the creditworthiness of these 

loan applicants, as well as their 

eligibility for financial assistance. 

Solicitation of Public Comments 

Comments may be submitted on (a) 

whether the collection of information is 

necessary for the agency to properly 

perform its functions; (b) whether the 

burden estimates are accurate; (c) 

whether there are ways to minimize the 

burden, including through the use of 

automated techniques or other forms of 

information technology; and (d) whether 

there are ways to enhance the quality, 

utility, and clarity of the information. 

Summary of Information Collections 

(1) Title: Disaster Home Loan 

Application. 

Description of Respondents: Disaster 

Recovery Victims. 

Form Number: SBA Form 5C. 

Estimated Annual Respondents: 

36,269. 

Estimated Annual Responses: 36,269. 

Estimated Annual Hour Burden: 

45,336. 

Copies: A copy of the Form OMB 

83–1, supporting statement, and other 

documents submitted to OMB for 

review may be obtained from the 

Agency Clearance Officer. 

Curtis B. Rich, 

Management Analyst. 

[FR Doc. 2014–27261 Filed 11–17–14; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

Reporting and Recordkeeping 

Requirements Under OMB Review 

AGENCY: Small Business Administration. 

ACTION: 30-Day notice. 

SUMMARY: The Small Business 

Administration (SBA) is publishing this 

notice to comply with requirements of 

the Paperwork Reduction Act (PRA) (44 

U.S.C. Chapter 35), which requires 

agencies to submit proposed reporting 

and recordkeeping requirements to 

OMB for review and approval, and to 

publish a notice in the Federal Register 

notifying the public that the agency has 

made such a submission. This notice 

also allows an additional 30 days for 

public comments. 

DATES: Submit comments on or before 

December 18, 2014. 

ADDRESSES: Comments should refer to 

the information collection by name and/ 

or OMB Control Number and should be 

sent to: Agency Clearance Officer, Curtis 

Rich, Small Business Administration, 

409 3rd Street SW., 5th Floor, 

Washington, DC 20416; and SBA Desk 

Officer, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, New 

Executive Office Building, Washington, 

DC 20503. 

FOR FURTHER INFORMATION CONTACT: 

Curtis Rich, Agency Clearance Officer, 

(202) 205–7030, curtis.rich@sba.gov. 

SUPPLEMENTARY INFORMATION: The 

requested information is submitted by 

small businesses or not-for-profit 

organizations who seek federal financial 

assistance (loans) to help in their 

recovery from declared disaster. SBA 

uses the information to determine the 

eligibility and creditworthiness of these 

loan applicants. 

Solicitation of Public Comments 

Comments may be submitted on (a) 

whether the collection of information is 

necessary for the agency to properly 

perform its functions; (b) whether the 

burden estimates are accurate; (c) 

whether there are ways to minimize the 

burden, including through the use of 

automated techniques or other forms of 

information technology; and (d) whether 

there are ways to enhance the quality, 

utility, and clarity of the information. 


tkelley on DSK3SPTVN1PROD with NOTICES