[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13315-13316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06160]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82935; File No. SR-OCC-2017-811]


Self-Regulatory Organizations; The Options Clearing Corporation; 
Notice of Extension of Review Period of Advance Notice of Proposed 
Changes Related to The Options Clearing Corporation's Margin 
Methodology

March 22, 2018.
    On November 13, 2017, The Options Clearing Corporation (``OCC'') 
filed with the Securities and Exchange Commission (``Commission'') 
advance notice SR-OCC-2017-811 (``Advance Notice'') pursuant to Section 
806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, entitled the Payment, Clearing, and Settlement 
Supervision Act of 2010 (``Clearing Supervision Act'') \1\ and Rule 
19b-4(n)(1)(i) under the Securities Exchange Act of 1934 (``Exchange 
Act'').\2\ The Advance Notice was published for comment in the Federal 
Register on December 27, 2017.\3\ As of February 20, 2018,\4\ the 
Commission has received one comment letter on the proposal contained in 
the Advance Notice.\5\
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 5465(e)(1). The Financial Stability Oversight 
Council designated OCC a systemically important financial market 
utility on July 18, 2012. See Financial Stability Oversight Council 
2012 Annual Report, Appendix A, available athttp://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf. Therefore, 
OCC is required to comply with the Payment, Clearing and Settlement 
Supervision Act and file advance notices with the Commission. See 12 
U.S.C. 5465(e).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ Exchange Act Release No. 82371 (Dec. 20, 2017), 82 FR 61354 
(Dec. 27, 2017) (SR-OCC-2017-811). On November 13, 2017, OCC also 
filed a related proposed rule change (SR-OCC-2017-022) with the 
Commission pursuant to Section 19(b)(1) of the Exchange Act and Rule 
19b-4 thereunder, seeking approval of changes to its rules necessary 
to implement the Advance Notice (``Proposed Rule Change''). 15 
U.S.C. 78s(b)(1) and 17 CFR 240.19b-4, respectively. The Proposed 
Rule Change was published in the Federal Register on December 4, 
2017. Exchange Act Release No. 82161 (Nov. 28, 2017), 82 FR 57306 
(Dec. 4, 2017) (SR-OCC-2017-022).
    \4\ The comment period closed on January 17, 2018.
    \5\ See letter from Michael Kitlas, dated November 28, 2017, to 
Eduardo A. Aleman, Assistant Secretary, Commission, available at 
https://www.sec.gov/comments/sr-occ-2017-022/occ2017022.htm. Since 
the proposal contained in the Proposed Rule Change was also filed as 
an Advance Notice, all public comments received on the proposal are 
considered regardless of whether the comments are submitted to the 
Proposed Rule Change or the Advance Notice.

---------------------------------------------------------------------------

[[Page 13316]]

    Section 806(e)(1)(G) of the Clearing Supervision Act provides that 
OCC may implement the changes if it has not received an objection to 
the proposed changes within 60 days of the later of (i) the date that 
the Commission receives the Advance Notice, or (ii) the date that any 
additional information requested by the Commission is received,\6\ 
unless extended as described below.
---------------------------------------------------------------------------

    \6\ 12 U.S.C. 5465(e)(1)(G).
---------------------------------------------------------------------------

    Pursuant to Section 806(e)(1)(H) of the Clearing Supervision Act, 
the Commission may extend the review period of an advance notice for an 
additional 60 days, if the changes proposed in the advance notice raise 
novel or complex issues, subject to the Commission providing the 
clearing agency with prompt written notice of the extension.\7\
---------------------------------------------------------------------------

    \7\ 12 U.S.C. 5465(e)(1)(H).
---------------------------------------------------------------------------

    On January 11, 2018, the Commission requested OCC provide it with 
additional information regarding the proposal,\8\ tolling the 
Commission's 60-day review period for the Advance Notice.\9\ On January 
23, 2018, OCC provided the Commission with a response to its request 
for information. Accordingly, the new 60-day review period commenced on 
January 23, 2018 and runs through March 24, 2018. However, the 
Commission finds the Advance Notice complex because OCC proposes to 
make detailed, substantial, and numerous changes to its margin 
methodology, the System for Theoretical Analysis and Numerical 
Simulations, used to calculate clearing member margin requirements. 
Therefore, the Commission finds it appropriate to extend the review 
period of the Advance Notice for an additional 60 days pursuant to 
Section 806(e)(1)(H) of the Clearing Supervision Act.\10\
---------------------------------------------------------------------------

    \8\ See Memorandum from Office of Clearance and Settlement, 
Division of Trading and Markets, dated January 12, 2018, available 
at https://www.sec.gov/comments/sr-occ-2017-811/occ2017811.htm.
    \9\ See Section 806(e)(1) of the Clearing Supervision Act 
(stating that the Commission's period for review of an advance 
notice was tolled and shall be 60 days from the date the information 
requested by the Commission is received by the Commission).
    \10\ The proposal 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.
     A Notice of Designation of Longer Period for Commission Action 
on the Proposed Rule Change was published in the Federal Register on 
January 24, 2018. Exchange Act Release No. 82534 (Jan. 18, 2018), 83 
FR 3376 (Jan. 24, 2018).
---------------------------------------------------------------------------

    Accordingly, the Commission, pursuant to Section 806(e)(1)(H) of 
the Clearing Supervision Act, extends the review period for an 
additional 60 days so that the Commission shall have until May 23, 2018 
to issue an objection or non-objection to the Advance Notice (File No. 
SR-OCC-2017-811).

    By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2018-06160 Filed 3-27-18; 8:45 am]
 BILLING CODE 8011-01-P