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Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices
lotter on DSK11XQN23PROD with NOTICES1

repo trades into central clearing, the proposals in the Advance Notice would help to decrease the settlement and operational risk present when such trades are conducted outside of central clearing. The Sponsored GC Service would thereby contribute to the stability of the tri-party repo market.
Furthermore, the Sponsored GC Service would enable FICC to centralize and control the liquidation of a greater number of tri-party repo transactions in the event of a member default, which in turn, would help protect the tri-party repo market against the destabilizing risk of a large-scale exit by institutional firms from the U.S. financial market in a stress scenario. Accordingly, the Commission believes that the proposed Sponsored GC Service would promote safety and soundness in the tri-party repo market, consistent with Section 805b of the Act.61
Additionally, the Commission also believes that FICCs proposal to change the CCLF allocation methodology is consistent with the principle of promoting robust risk management. As described above in Section II.C., FICCs proposal to change the CCLF allocation methodology would not impact FICCs current methodology for determining the total amount of the CCLF. As a result, FICC would retain its current level of liquid resources. FICCs proposal would only change the allocation of CCLF obligations among FICCs members. As described above in this Section III.A.1., FICCs proposed CCLF allocation methodology would result in a CCLF obligation for each member that better corresponds to the actual liquidity risk each members trading activity presents to FICC.
Accordingly, the Commission believes FICCs proposed CCLF allocation methodology would promote robust risk management because it would better align the costs for a member to participate in FICC with the level of risk the members trading activity presents to FICC, while still maintaining the same overall level of liquidity resources at FICC.
B. Consistency With Rule 17Ad22e7
Rule 17Ad22e7 under the Exchange Act requires a covered clearing agency to establish, implement, maintain, and enforce written policies and procedures reasonably designed to effectively measure, monitor, and manage the liquidity risk that arises in or is borne by the covered clearing agency.62 As described above in Section I.C.3., FICC proposes to change the
Rules to allow netting, for CCLF
allocation purposes, of offsetting positions in a Sponsoring Members omnibus account and netting account.
FICCs proposal would not impact FICCs current methodology for determining the total amount of the CCLF as a liquidity resource. As discussed above in Section III.A.1., FICC
proposes to change the Rules regarding CCLF allocation to ensure that a Sponsoring Members CCLF obligation aligns more closely with the actual liquidity risk its trading activity presents to FICC. As a result, FICCs proposed CCLF allocation methodology represents more efficient liquidity risk management than the current methodology. Accordingly, the Commission believes that FICCs proposed CCLF allocation methodology is consistent with Rule 17Ad22e7.63
C. Consistency With Rule 17Ad 22e21
Rule 17Ad22e21 under the Exchange Act requires a covered clearing agency to establish, implement, maintain, and enforce written policies and procedures reasonably designed to be efficient and effective in meeting the requirements of its participants and the markets it serves, including the clearing agencys clearing and settlement arrangements and the scope of products cleared or settled.64 As described above in Section I.B., FICCs current Sponsored Service does not accommodate the trading of tri-party repos. FICC proposes to expand the Sponsored Service to allow tri-party repo trading to meet the needs of market participants that currently transact triparty term repos outside of central clearing because they are not operationally equipped to perform the collateral management and other functions associated with term DVP
repos. By expanding the Sponsored Service to facilitate tri-party repo trading, FICC seeks to provide a viable option for its members to transact term tri-party repos in central clearing.
Sponsored GC Trades would settle in a manner similar to the way Sponsoring Members and Sponsored Members currently settle tri-party repos with each other outside of central clearing, thereby making it more operationally efficient for the parties to transact term repos with each other using FICC as the CCP.
The Commission believes that the proposed Sponsored GC Service is consistent with Rule 17Ad22e21 65
because it is responsive to the requests
from FICCs members for the ability to trade centrally cleared term tri-party repos in a manner that is efficient and effective in meeting the operational requirements of FICCs members.
IV. Conclusion It is therefore noticed, pursuant to Section 806e1I of the Clearing Supervision Act, that the Commission does not object to Advance Notice SR
FICC2021801 and that FICC is authorized to implement the proposed change as of the date of this notice or the date of an order by the Commission approving Proposed Rule Change SR
FICC2021003, whichever is later.
By the Commission.
Vanessa A. Countryman, Secretary.
FR Doc. 202118950 Filed 9121; 8:45 am BILLING CODE 801101P

SECURITIES AND EXCHANGE
COMMISSION
Release No. 3492795; File Nos. SRNYSE
202114, SRNYSEAMER202110, SR
NYSEArca202113, SRNYSECHX2021
03, SRNYSENAT202104

Self-Regulatory Organizations; New York Stock Exchange LLC, NYSE
American LLC, NYSE Arca, Inc., NYSE
Chicago, Inc., and NYSE National, Inc.;
Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove Proposed Rule Changes To Amend the Schedule of Wireless Connectivity Fees and Charges To Add Circuits for Connectivity Into and Out of the Data Center in Mahwah, New Jersey August 27, 2021.

On February 12, 2021, New York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc., NYSE Chicago, Inc., and NYSE National, Inc.
collectively, the Exchanges each filed with the Securities and Exchange Commission Commission, pursuant to Section 19b1 of the Securities Exchange Act of 1934 Act 1 and Rule 19b4 thereunder,2 a proposed rule change to 1 add circuits for connectivity into and out of the data center in Mahwah, New Jersey Mahwah Data Center; 2 add services available to customers of the Mahwah Data Center that are not colocation Users; and 3 change the name of the Fee Schedule to Mahwah Wireless, Circuits, and Non-Colocation Connectivity Fee Schedule. The
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