Rule 12g3-2.30 Day Federal Register Notice

53670

Federal Register / Vol. 89, No. 124 / Thursday, June 27, 2024 / Notices

This Notice will be published in the
Federal Register.
Jennie Jbara,
Primary Certifying Official.
[FR Doc. 2024–14114 Filed 6–26–24; 8:45 am]
BILLING CODE 7710–FW–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–104, OMB Control No.
3235–0119]

Dated: June 21, 2024.
Vanessa A. Countryman,
Secretary.

lotter on DSK11XQN23PROD with NOTICES1

Submission for OMB Review;
Comment Request; Extension:
Securities Exchange Act 1934—Rule
12g3–2

[FR Doc. 2024–14080 Filed 6–26–24; 8:45 am]
BILLING CODE 8011–01–P

Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget this
request for extension of the previously
approved collection of information
discussed below.
Rule 12g3–2 (17 CFR 240.12g3–2)
under the Securities Exchange Act of
1934 (the ‘‘Exchange Act’’) provides an
exemption from Section 12(g) of the
Exchange Act (15 U.S.C. 78l(g)) for
foreign private issuers. Rule 12g3–2 is
designed to provide investors in foreign
securities with information about such
securities and the foreign issuer. The
information filed under Rule 12g3–2
must be filed with the Commission and
is publicly available. We estimate that it
takes 8.948 hours per response to
prepare and is filed by approximately
1,386 respondents. Each respondent
files an estimated 12 times submissions
pursuant to Rule 12g3–2 per year for a
total of 16,632 respondents. We estimate
that 25% of 8.948 hours per response
(2.237 hours per response) to provide
the information required under Rule
12g3–2 for a total annual reporting
burden of 37,206 hours (2.237 hours per
response × 16,632 responses).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the

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search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice by July 29, 2024 to (i)
www.reginfo.gov/public/do/PRAMain
and (ii) David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
PRA_Mailbox@sec.gov.

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–100402; File No. SR–FICC–
2024–008]

Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Approving Proposed Rule Change To
Modify the GSD Rules and MBSD
Rules To Update Certain Member
Requirements Under CCLF
June 21, 2024.

I. Introduction
On May 8, 2024, Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), 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 SR–FICC–2024–008 (‘‘Proposed
Rule Change’’) to amend FICC’s
Government Securities Division
(‘‘GSD’’) Rulebook (‘‘GSD Rules’’) and
Mortgage-Backed Securities Division
(‘‘MBSD’’) Clearing Rules (‘‘MBSD
Rules,’’ and collectively with the GSD
Rules, the ‘‘Rules’’) 3 to update certain
member requirements concerning
FICC’s Capped Contingency Liquidity
Facility (‘‘CCLF’’). The proposed rule
change was published for comment in
the Federal Register on May 20, 2024.4
The Commission has received no
comments on the proposed rule change.
For the reasons discussed below, the
Commission is approving the Proposed
Rule Change.
1 15

U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Terms not defined herein are defined in the GSD
Rules and MBSD Rules, as applicable, available at
www.dtcc.com/legal/rules-and-procedures.
4 See Securities Exchange Act Release No. 100137
(May 14, 2024), 89 FR 43938 (May 20, 2024) (File
No. SR–FICC–2024–008) (‘‘Notice of Filing’’).
2 17

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II. Background
FICC is a central counterparty
(‘‘CCP’’), which means it interposes
itself as the buyer to every seller and
seller to every buyer for the financial
transactions it clears. FICC’s GSD
provides CCP services for the U.S.
Government securities market, and
FICC’s MBSD provides CCP services for
the U.S. mortgage-backed securities
markets.5 As such, FICC is exposed to
the risk that one or more of its members
may fail to make a payment or to deliver
securities.
The CCLF is a rules-based committed
liquidity resource designed to enable
FICC to meet its cash settlement
obligations in the event of a default of
the member (including the member’s
family of affiliated members) to which
FICC has the largest exposure in
extreme but plausible market
conditions.6 FICC would declare a
Capped Contingency Liquidity Facility
Event (‘‘CCLF Event’’) to activate the
CCLF if, upon a member default, FICC
determines that its non-CCLF liquidity
resources would not generate sufficient
cash to satisfy FICC’s payment
obligations to its non-defaulting
members.7 During a CCLF Event,
members would be called upon to enter
into repo transactions (as cash lenders)
with FICC (as cash borrower) up to a
pre-determined capped dollar amount,
thereby providing FICC with sufficient
liquidity to meet its payment
obligations.8 In simple terms, a CCLF
repo is equivalent to a non-defaulting
member financing FICC’s payment
obligation under the original trade,
thereby providing FICC with time to
liquidate the securities underlying the
original trade.
FICC determines the total size of the
CCLF based on FICC’s potential cash
settlement obligations that would result
from the default of the member
(including affiliates) presenting the
largest liquidity need to FICC over a
specified look-back period, plus an
5 GSD and MBSD maintain separate sets of rules,
margin models, and clearing funds.
6 FICC designed the CCLF to meet the regulatory
requirement for a covered clearing agency to
measure, monitor, and manage its liquidity risk by
maintaining sufficient liquid resources to effect
same-day settlement of payment obligations in the
event of a default of the participant family that
would generate the largest aggregate payment
obligation for the clearing agency in extreme but
plausible market conditions. See Securities
Exchange Act Release No. 82090 (Nov. 15, 2017),
82 FR 55427, 55430 (Nov. 21, 2017) (SR–FICC–
2017–002); see 17 CFR 240.17Ad–22(e)(7)(i); GSD
Rule 22A, Section 2a, and MBSD Rule 17, Section
2a, supra note 3.
7 GSD Rule 22A, Section 2a, supra note 3; MBSD
Rule 17, Section 2a, supra note 3.
8 GSD Rule 22A, Section 2a, supra note 3; MBSD
Rule 17, Section 2a, supra note 3.

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