Unknown. Final rule

4,480 words·~20 min read·/register/2018/06/07/2018-12267

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2018-06-07.xml --- 83 110 Thursday, June 7, 2018 Contents Agriculture Agriculture Department See Animal and Plant Health Inspection Service AIRFORCE Air Force Department RULES Freedom of Information Act Program, 26361 2018-12237 Alcohol Tobacco Firearms Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Federal Explosives License/Permit Renewal Application, 26497-26498 2018-12215 Firearms Disabilities for Nonimmigrant Aliens, 26498 2018-12214 Animal Animal and Plant Health Inspection Service NOTICES Determinations:

Classical Swine Fever and Swine Vesicular Disease Status of Japan, 26410 2018-12186 Environmental Assessments; Availability, etc.: Bayer CropScience LP; Cotton Genetically Engineered for Resistance to HPPD-Inhibitor Herbicides (e.g., Isoxaflutole) and Glyphosate, 26410-26412 2018-12187 Antitrust Division Antitrust Division NOTICES Changes Under the National Cooperative Research and Production Act of 1993: DVD Copy Control Assn., 26498-26499 2018-12209 Heterogeneous System Architecture Foundation, 26499 2018-12206 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 26464-26465 2018-12251 Civil Rights Civil Rights Commission NOTICES Meetings: Idaho Advisory Committee, 26412-26413 2018-12199 Massachusetts Advisory Committee, 26413 2018-12213 South Dakota Advisory Committee, 26413-26414 2018-12266 Coast Guard Coast Guard RULES Drawbridge Operations: Hutchinson River, New York, NY, 26364-26365 2018-12287 Snohomish River and Steamboat Slough, Everett and Marysville, WA, 26365 2018-12284 Willamette River at Portland, OR, 26364 2018-12282 Safety Zones:

Blazing Paddles 2018 Stand Up Paddleboard Race, Cuyahoga River, Cleveland, OH, 26367-26369 2018-12301 Ohio River, Mile Marker 27.8 to Mile Marker 28.2, Vanport, PA, 26365-26367 2018-12283 Special Local Regulations: Tred Avon River, Between Bellevue, MD and Oxford, MD, 26361-26364 2018-12281 NOTICES Certificates of Alternative Compliance: M/V SAMANTHA S, 26490 2018-12288 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration See National Telecommunications and Information Administration Commodity Futures Commodity Futures Trading Commission NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Provisions Common to Registered Entities, 26436-26437 2018-12278 Regulation of Domestic Exchange-Traded Options, 26437-26438 2018-12277 Comptroller Comptroller of the Currency RULES Securities Transaction Settlement Cycle, 26347-26349 2018-12267 Defense Department Defense Department See Air Force Department Delaware Delaware River Basin Commission RULES Regulatory Program Fees and Water Charges Rates, 26354-26356 2018-12258 Education Department Education Department NOTICES Applications for New Awards:

Gaining Early Awareness and Readiness for Undergraduate Programs (Partnership Grants), 26438-26445 2018-12294 Gaining Early Awareness and Readiness for Undergraduate Programs (State Grants), 26445-26452 2018-12291 Energy Department Energy Department See Federal Energy Regulatory Commission NOTICES Applications to Export Electric Energy: ALLETE, Inc., d/b/a Minnesota Power, 26452 2018-12264 Exclusive Copyright Licenses: VariGrid Explorations, Inc., 26453 2018-12262 Self-Certifications of Coal Capability Under Powerplant and Industrial Fuel Use Act;

Filings, 26452-26453 2018-12263 Environmental Protection Environmental Protection Agency RULES Pesticide Tolerances: Acequinocyl, 26369-26374 2018-12297 NOTICES Public Water System Supervision Program; Revisions: Nevada, 26456-26457 2018-12376 Farm Credit Farm Credit Administration NOTICES Meetings; Sunshine Act, 26457 2018-12352 Federal Accounting Federal Accounting Standards Advisory Board NOTICES Statement of Federal Financial Accounting Standards 55: Amending Inter-Entity Cost Provisions, 26457 2018-12265 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives:

Aircraft Industries a.s. Airplanes, 26349-26352 2018-11930 Bombardier, Inc., Airplanes, 26352-26354 2018-11827 PROPOSED RULES Airworthiness Directives: 328 Support Services GmbH (Type Certificate Previously Held by AvCraft Aerospace GmbH; Fairchild Dornier GmbH; Dornier Luftfahrt GmbH) Airplanes, 26389-26391 2018-12135 Airbus Helicopters Deutschland GmbH Helicopters, 26387-26389 2018-12227 Honda Aircraft Company LLC, 26381-26383 2018-12127 The Boeing Company Airplanes, 26383-26387 2018-12128 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Aviation Insurance, 26537 2018-12296 Dealer's Aircraft Registration Certificate Application, 26537-26538 2018-12298 Organization Designation Authorization, 26538-26539 2018-12299 Federal Communications Federal Communications Commission PROPOSED RULES Transforming the 2.5 GHz Band, 26396-26409 2018-12183 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26457-26461, 26463 2018-12180 2018-12181 2018-12182 2018-12280 Meetings:

Open Commission Meeting, 26461-26462 2018-12184 Federal Deposit Federal Deposit Insurance Corporation RULES Securities Transaction Settlement Cycle, 26347-26349 2018-12267 Federal Emergency Federal Emergency Management Agency NOTICES Flood Hazard Determinations; Changes, 26491-26494 2018-12248 Flood Hazard Determinations; Proposals, 26494-26495 2018-12246 Major Disaster Declarations: Ohio; Amendment No. 1, 26495-26496 2018-12247 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Filings, 26454-26456 2018-12240 Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorizations:

Copenhagen Wind Farm, LLC, 26454 2018-12243 East Hampton Energy Storage Center, LLC, 26454 2018-12241 Montauk Energy Storage Center, LLC, 26456 2018-12242 Stoneray Power Partners, LLC, 26453-26454 2018-12244 Federal Highway Federal Highway Administration NOTICES Final Federal Agency Actions: California; Proposed Highway, 26539-26540 2018-12235 Meetings: National Dialogue on Highway Automation, 26539 2018-12292 Federal Motor Federal Motor Carrier Safety Administration RULES General Technical, Organizational, Conforming, and Correcting Amendments to Federal Motor Carrier Safety Regulations:

Correction, 26374 2018-12032 Hours of Service of Drivers of Commercial Motor Vehicles: Regulatory Guidance Concerning Transportation of Agricultural Commodities, 26374-26377 2018-12250 Regulatory Guidance Concerning Use of Commercial Motor Vehicle for Personal Conveyance, 26377-26380 2018-12256 Federal Railroad Federal Railroad Administration NOTICES Petitions for Waivers of Compliance, 26540-26541 2018-12224 Federal Reserve Federal Reserve System NOTICES Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 26463 2018-12302 Federal Transit Federal Transit Administration NOTICES Limitations on Claims Against Proposed Public Transportation Projects, 26541 2018-12238 Food and Drug Food and Drug Administration RULES Listing of Color Additives Subject to Certification;

D and C Black No. 4, 26356-26359 2018-12218 PROPOSED RULES Product Jurisdiction: Correction, 26392 2018-12201 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Environmental Impact Considerations, 26477-26481 2018-12221 Record Retention Requirements for Soy Protein and Risk of Coronary Heart Disease Health Claim, 26477 2018-12216 Charter Renewals: Advisory Committee; Pulmonary-Allergy Drugs Advisory Committee, 26481 2018-12219 Food and Drug Administration Modernization Act of 1997:

Modifications to List of Recognized Standards, Recognition List Number: 049, 26465-26475 2018-12222 Guidance: Prescription Drug User Fee Act Waivers for Fixed-Combination Antiretroviral Drugs for President's Emergency Plan for AIDS Relief, 26475-26477 2018-12217 Requests for Feedback and Meetings for Medical Device Submissions: Q-Submission Program, 26482-26483 2018-12223 Meetings: Pulmonary-Allergy Drugs Advisory Committee; Establishment of Public Docket, 26483-26485 2018-12226 New Drug Applications:

Sebela Ireland, Ltd., et al.; Withdrawal of Approval; Correction, 26481-26482 2018-12220 Foreign Assets Foreign Assets Control Office NOTICES Blocking or Unblocking of Persons and Properties, 26542-26544 2018-12189 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Food and Drug Administration See National Institutes of Health NOTICES Requests for Information: Facilitation of Public-Private Dialogue To Increase Innovation and Investment in Healthcare Sector, 26485-26486 2018-12234 Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Homeland Security Acquisition Regulation on Agency Protests, 26496-26497 2018-12286 Housing Housing and Urban Development Department RULES Removal of Cross References to Previously Removed Appendices and Subpart, 26359-26361 2018-12274 Internal Revenue Internal Revenue Service NOTICES Meetings: Electronic Tax Administration Advisory Committee, 26544 2018-12207 Taxpayer Advocacy Panel Joint Committee, 26546 2018-12210 Taxpayer Advocacy Panel Notices and Correspondence Project Committee, 26545 2018-12204 Taxpayer Advocacy Panel Special Projects Committee, 26544-26545 2018-12211 Taxpayer Advocacy Panel Tax Forms and Publications Project Committee, 26545 2018-12205 Taxpayer Advocacy Panel Taxpayer Assistance Center Improvements Project Committee, 26546 2018-12208 Taxpayer Advocacy Panel Taxpayer Communications Project Committee, 26546 2018-12212 Taxpayer Advocacy Panel Toll-Free Phone Line Project Committee, 26545 2018-12203 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Certain Folding Gift Boxes From the People's Republic of China; Final Results of Expedited Third Sunset Review and Continuation of Antiumping Duty Order, 26414-26415 2018-12271 Glycine From India, the People's Republic of China, and Thailand; Postponement of Preliminary Determinations, 26415-26416 2018-12272 International Trade Com International Trade Commission NOTICES Meetings; Sunshine Act, 26497 2018-12363 Justice Department Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau See Antitrust Division NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Request for Registration Under Gambling Devices Act of 1962, 26499 2018-12290 NASA National Aeronautics and Space Administration NOTICES Intents To Grant Partially Exclusive Patent Licenses, 26499-26501 2018-12231 2018-12232 National Institute National Institutes of Health NOTICES End of Call for Participation for Computational Photography Project for Pill Identification, 26489 2018-12273 Meetings: Center for Scientific Review, 26489-26490 2018-12174 National Institute of Arthritis and Musculoskeletal and Skin Diseases, 26486-26487 2018-12175 National Institute of Mental Health, 26489 2018-12176 National Institute of Nursing Research, 26488-26489 2018-12177 2018-12178 Prospective Grants of Exclusive Patent Licenses:

Development of Anti-BCMA Immunotoxin for Treatment of Human Cancer, 26487-26488 2018-12179 National Oceanic National Oceanic and Atmospheric Administration NOTICES Charter Renewals: Marine Fisheries Advisory Committee, 26416 2018-12198 Meetings: Marine Fisheries Advisory Committee, 26416 2018-12197 Pacific Fishery Management Council, 26432 2018-12289 Schedules for Atlantic Shark Identification Workshops and Safe Handling, Release, and Identification Workshops, 26432-26434 2018-12275 Takes of Marine Mammals Incidental to Specified Activities:

Marine Site Characterization Surveys Off of Delaware, 26416-26432 2018-12225 National Telecommunications National Telecommunications and Information Administration NOTICES Meetings: Multistakeholder Process on Promoting Software Component Transparency, 26434-26436 2018-12261 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Draft Letter to Nuclear Energy Institute Regarding Clarification of Regulatory Paths for Lead Test Assemblies, 26503-26505 2018-12276 Environmental Assessments;

Availability, etc.: Pacific Gas and Electric Co. Diablo Canyon Independent Spent Fuel Storage Installation, 26501-26503 2018-12249 Meetings: Advisory Committee on Medical Uses of Isotopes, 26503 2018-12269 Pipeline Pipeline and Hazardous Materials Safety Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Pipeline Safety, 26541-26542 2018-12239 Postal Regulatory Postal Regulatory Commission PROPOSED RULES Periodic Reporting, 26392-26396 2018-12200 Postal Service Postal Service NOTICES Product Changes:

Priority Mail Express Negotiated Service Agreement, 26505 2018-12252 Priority Mail Negotiated Service Agreement, 26505-26506 2018-12253 2018-12254 2018-12255 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26510-26511 2018-12192 Applications: Sprott ETF Trust and Sprott Asset Management USA, Inc., 26506-26507 2018-12191 Self-Regulatory Organizations; Proposed Rule Changes: Cboe BZX Exchange, Inc., 26531-26533 2018-12196 Fixed Income Clearing Corp., 26514-26530 2018-12195 New York Stock Exchange, LLC, 26507-26514 2018-12193 2018-12194 Small Business Small Business Administration NOTICES Disaster Declarations:

Virginia; Administrative Declaration, 26533 2018-12185 Surface Transportation Surface Transportation Board NOTICES Changes in Operator Exemptions: Delmarva Central Railroad Co.; Cassatt Management, LLC d/b/a Bay Coast Railroad, 26533 2018-12308 Tennessee Tennessee Valley Authority NOTICES Environmental Impact Statements; Availability, etc.: Cumberland Fossil Plant Coal Combustion Residuals Management Operations, 26534-26537 2018-12236 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Motor Carrier Safety Administration See Federal Railroad Administration See Federal Transit Administration See Pipeline and Hazardous Materials Safety Administration Treasury Treasury Department See Comptroller of the Currency See Foreign Assets Control Office See Internal Revenue Service Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 83 110 Thursday, June 7, 2018 Rules and Regulations DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 12 and 151 [Docket ID OCC-2017-0013] RIN 1557-AE24 FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 344 RIN 3064-AE64 Securities Transaction Settlement Cycle AGENCY:

Office of the Comptroller of the Currency, Treasury (“OCC”); and Federal Deposit Insurance Corporation (“FDIC”). ACTION: Final rule. SUMMARY: The OCC and the FDIC (“Agencies”) are adopting a final rule to shorten the standard settlement cycle for securities purchased or sold by national banks, federal savings associations, and FDIC-supervised institutions. The Agencies' final rule is consistent with an industry-wide transition to a two business-day settlement cycle, which is designed to reduce settlement exposure and align settlement practices across all market participants.

DATES: This final rule is effective October 1, 2018. FOR FURTHER INFORMATION CONTACT: *OCC:* David Stankiewicz, Special Counsel, Securities and Corporate Practices Division,

(202)649-5510; Daniel Perez, Attorney, Legislative and Regulatory Activities Division,

(202)649-5490 or, for persons who are deaf or hearing-impaired, TTY,

(202)649-5597; or Patricia Dalton, Technical Expert, Asset Management Group, Market Risk, at

(202)649-6360. *FDIC:* Thomas F. Lyons, Chief,

(202)898-6850; Michael W. Orange, Senior Trust Examination Specialist,

(678)916-2289, Policy & Program Development, Risk Management Policy Branch, Division of Risk Management Supervision; Annmarie H. Boyd, Counsel,

(202)898-3714; Benjamin J. Klein, Counsel,

(202)898-7027, Bank Activities Unit, Supervision and Legislation Branch, Legal Division. SUPPLEMENTARY INFORMATION: I. Background On September 5, 2017, the securities industry in the United States transitioned from a standard securities settlement cycle of three business days after the date of the contract, commonly known as “T+3,” to a two-business day standard, or “T+2.” The transition was the culmination of a multi-year securities industry initiative and rule changes implemented by the U.S. Securities and Exchange Commission and securities self-regulatory organizations (such as the Financial Industry Regulatory Authority and the Municipal Securities Rulemaking Board). In connection with the transition to T+2, on June 9, 2017, the OCC issued Bulletin 2017-22, which notified national banks, federal savings associations (“FSAs”), federal branches, and federal agencies (together, “OCC-supervised institutions”) that they should be in compliance with T+2 as of September 5, 2017. The FDIC issued similar guidance applicable to FDIC-supervised institutions 1 through Financial Institution Letter 32-2017 on July 26, 2017. 1 “FDIC-supervised institution” means any insured depository institution for which the FDIC is the appropriate Federal banking agency pursuant to section 3(q) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(q). 12 CFR 344.3(h). Pursuant to section 3(q), the FDIC is the appropriate Federal banking agency with respect to:

(1)Any State nonmember insured bank;

(2)any foreign bank having an insured branch; and

(3)any State savings association. 12 U.S.C. 1813(q)(2). Regulations governing recordkeeping and confirmation requirements for the securities transactions of national banks and FSAs, both for the bank's own account and for customers, are set out in parts 12 and 151 of the OCC's regulations, respectively. Regulations governing the same for FDIC-supervised institutions are set out in part 344 of the FDIC's regulations. These regulations require that banks generally not effect or enter into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than the third business day after the date of the contract, unless otherwise expressly agreed to by the parties at the time of the transaction. II. Notice of Proposed Rulemaking On September 11, 2017, the Agencies published in the **Federal Register** a notice of proposed rulemaking that would amend regulations applicable to OCC-supervised institutions and FDIC-supervised institutions (together, “banks”) by aligning those regulations with T+2. 2 In the notice of proposed rulemaking, the Agencies proposed to amend their respective regulations by directly changing the settlement period applicable to banks from three business days to two. The Agencies also proposed an alternative approach, which would achieve the same immediate result but operate by tying the settlement period applicable to banks to the “standard settlement cycle followed by registered broker dealers in the United States.” 2 82 FR 42619 (Sep. 11, 2017). The Agencies received three responses to their request for comment. The Investment Company Institute (“ICI”) and the Securities Industry and Financial Markets Association (“SIFMA”) both “strongly” supported the proposal as a path to aligning the Agencies' regulations with those applicable to other market participants in the United States. A third commenter, an individual, also expressed support for the final rule. Both ICI and SIFMA expressed a preference for the alternative approach. After considering these comments, the Agencies decided to adopt the alternative approach in order to maintain alignment more readily between the settlement period applicable to banks and the standard settlement cycle followed by registered broker dealers in the United States. III. Description of the Final Rule The final rule will require banks to settle most securities transactions within the number of business days in the “standard settlement cycle followed by registered broker dealers in the United States” unless otherwise agreed to by the parties at the time of the transaction. Banks will be able to determine the number of business days in the standard settlement cycle followed by registered broker dealers in the United States by referencing SEC Rule 15c6-1, 17 CFR 240.15c6-1(a). Effective September 5, 2017, and as of the date of publication of this final rule, the standard settlement cycle followed by registered broker dealers in the United States is two business days after the date of the contract. The final rule amends the OCC and FDIC regulations at parts 12, 151, and 344, which govern the recordkeeping and confirmation requirements for bank securities transactions. In order to accommodate the change described above, the Agencies made certain additional, purely editorial changes to the language of these parts. The additional changes were intended to make the regulations easier to follow and understand in light of the revisions necessary to implement the alternative approach. The effective date for this final rule is October 1, 2018. The Agencies understand that, consistent with the industry's transition to T+2, banks are already in compliance with a two-day settlement standard as a practical matter. IV. Regulatory Analysis Paperwork Reduction Act Under the Paperwork Reduction Act (“PRA”), 44 U.S.C. 3501-3520, the Agencies may not conduct or sponsor, and a person is not required to respond to, an information collection unless the information collection displays a valid Office of Management and Budget (“OMB”) control number. This final rule does not introduce or change any collections of information; therefore, it does not require a submission to OMB. The Agencies invited comment on their PRA determination when issuing the proposed rule, and no responsive comments were received. Regulatory Flexibility Act The Regulatory Flexibility Act, 5 U.S.C. 601 *et seq.* (“RFA”), requires an agency, in connection with a final rule, to prepare a Final Regulatory Flexibility Analysis describing the impact of the rule on small entities (defined by the Small Business Administration (“SBA”) for purposes of the RFA to include banking entities with total assets of $550 million or less) or to certify that the rule would not have a significant economic impact on a substantial number of small entities. *FDIC:* For the reasons described below and pursuant to section 605(b) of the RFA, the FDIC certifies that the final rule will not have a significant economic impact on a substantial number of small entities. As of December 31, 2017, the FDIC supervises 3,643 depository institutions, of which 2,924 are defined as small banking entities by the terms of the RFA. The transition of the standard settlement cycle to two days will reduce by one day the settlement time of transactions for equities, corporate bonds, municipal bonds, unit investment trusts, mutual funds, exchange-traded funds, exchange-traded products, American depository receipts, options, rights, and warrants. According to recent Call Report data, 2,565 FDIC-supervised small entities reported holding some volume of equities that are likely to be affected by the new securities settlement cycle, provide custodial banking services, or possess a subsidiary classified as a securities dealer. The effects on small entities will vary according to the degree of participation in securities transactions. According to recent Call Report data one small entity identified itself as providing custodial banking services, while seven small entities have a subsidiary classified as a securities dealer according to data from the Federal Reserve's National Information Center. As discussed above, because the industry has already implemented the practice of a standard settlement cycle, currently consisting of two days, and because the final rule does not contain any new recordkeeping, reporting, or compliance requirements, the FDIC anticipates that it will not impose any significant additional costs on FDIC-supervised institutions. Thus, the final rule will not have a substantial impact on any FDIC-supervised small entities. Therefore, the FDIC certifies that the final rule would not have a significant economic impact on a substantial number of FDIC-supervised small entities. *OCC:* As of December 31, 2017, the OCC supervised approximately 886 small entities. 3 Because the final rule does not contain any new recordkeeping, reporting, or compliance requirements, the OCC anticipates that it will not impose costs on any OCC-supervised institutions. Further, OCC-supervised institutions were required to comply with the substance of the rule before the proposed rule was published in the **Federal Register** . Thus, the final rule will not have a substantial impact on any OCC-supervised small entities. Therefore, the OCC certifies that the final rule would not have a significant economic impact on a substantial number of OCC-supervised small entities. 3 The OCC calculated the number of small entities using the SBA's size thresholds for commercial banks and savings institutions, and trust companies, which are $550 million and $38.5 million, respectively. Consistent with the General Principles of Affiliation, 13 CFR 121.103(a), the OCC counted the assets of affiliated financial institutions when determining whether to classify a national bank or federal savings association as a small entity. The OCC used December 31, 2017, to determine size because a “financial institution's assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year.” See footnote 8 of the SBA's *Table of Size Standards.* Unfunded Mandates Reform Act of 1995 Determination The OCC analyzed the final rule under the factors set forth in the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1532). Under this analysis, the OCC considered whether the final rule includes a federal mandate that may result in the expenditure by state, local, and Tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year (adjusted annually for inflation). The rule does not impose new mandates. Therefore, the OCC concludes that implementation of the rule will not result in an expenditure of $100 million or more annually by state, local, and tribal governments, or by the private sector. Riegle Community Development and Regulatory Improvement Act The Riegle Community Development and Regulatory Improvement Act (“RCDRIA”) requires that the Agencies, in determining the effective date and administrative compliance requirements of new regulations that impose additional reporting, disclosure, or other requirements on insured depository institutions (“IDIs”), consider, consistent with principles of safety and soundness and the public interest, any administrative burdens that such regulations would place on depository institutions, including small depository institutions, and customers of depository institutions, as well as the benefits of such regulations. 12 U.S.C. 4802. In addition, in order to provide an adequate transition period, new regulations that impose additional reporting, disclosures, or other new requirements on IDIs generally must take effect on the first day of a calendar quarter that begins on or after the date on which the regulations are published in final form. The final rule includes no additional reporting, disclosure, or other requirements on IDIs, including small depository institutions, nor on the customers of depository institutions. Therefore, the requirements of RCDRIA do not apply. Nonetheless, the Agencies invited comment on any administrative burdens that the final rule would place on depository institutions, including small depository institutions, and customers of depository institutions. The Agencies did not receive any comments responsive to this issue. Plain Language Section 722 of the Gramm-Leach-Bliley Act requires the Agencies to use plain language in all proposed and final rules published after January 1, 2000. When issuing a proposed rule, the Agencies invited comment on how to make this rule easier to understand. No comments responsive to this issue were received. List of Subjects 12 CFR Parts 12 and 151 Banks, Banking, Federal savings associations, National banks, Reporting and recordkeeping requirements, Securities. 12 CFR Part 344 Banks, Banking, Reporting and recordkeeping requirements, Savings associations. OCC amends 12 CFR parts 12 and 151 and FDIC amends 12 CFR part 344 as follows: DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency PART 12—RECORDKEEPING AND CONFIRMATION REQUIREMENTS FOR SECURITIES TRANSACTIONS 1. The authority citation for part 12 continues to read as follows: Authority: 12 U.S.C. 24, 92a, and 93a. 2. Section 12.9 is amended by revising paragraph

(a)to read as follows: § 12.9 Settlement of securities transactions.

(a)All contracts effected or entered into by a national bank for the purchase or sale of a security (other than an exempted security as defined in 15 U.S.C. 78c(a)(12), government security, municipal security, commercial paper, bankers' acceptances, or commercial bills) shall provide for completion of the transaction within the number of business days in the standard settlement cycle followed by registered broker dealers in the United States, unless otherwise agreed to by the parties at the time of the transaction. The number of business days in the standard settlement cycle shall be determined by reference to paragraph

(a)of SEC Rule 15c6-1, 17 CFR 240.15c6-1(a). PART 151—RECORDKEEPING AND CONFIRMATION REQUIREMENTS FOR SECURITIES TRANSACTIONS 3. The authority citation for part 151 continues to read as follows: Authority: 12 U.S.C. 1462a, 1463, 1464, 5412(b)(2)(B). 4. Section 151.130 is amended by: a. Republishing paragraph

(a)introductory text. b. Revising paragraphs (a)(1) and (a)(2); c. Redesignating paragraph (a)(3) as (a)(4); and d. Adding a new paragraph (a)(3). The revisions and addition are set forth below. § 151.130 When must I settle a securities transaction?

(a)You may not effect or enter into a contract for the purchase or sale of a security that provides for payment of funds and delivery of securities later than the latest of:

(1)The number of business days in the standard settlement cycle followed by registered broker dealers in the United States after the date of the contract. The number of business days in the standard settlement cycle shall be determined by reference to paragraph

(a)of SEC Rule 15c6-1, 17 CFR 240.15c6-1(a);

(2)The fourth business day after the contract, if the contract involves the sale for cash of securities that are priced after 4:30 p.m. Eastern Standard Time on the date the securities are priced and are sold by an issuer to an underwriter under a firm commitment underwritten offering registered under the Securities Act of 1933, 15 U.S.C. 77a, *et seq.,* or are sold by you to an initial purchaser participating in the offering;

(3)Such time as the SEC may specify pursuant to an order of exemption in accordance with paragraph (b)(2) of SEC Rule 15c6-1; or FEDERAL DEPOSIT INSURANCE CORPORATION PART 344—RECORDKEEPING AND CONFIRMATION REQUIREMENTS FOR SECURITIES TRANSACTIONS 5. The authority citation for part 344 continues to read as follows: Authority: 12 U.S.C. 1817, 1818, 1819, and 5412. 6. Section 344.7 is amended by revising paragraph

(a)to read as follows: § 344.7 Settlement of securities transactions.

(a)All contracts effected or entered into by an FDIC-supervised institution that provide for the purchase or sale of a security (other than an exempted security as defined in 15 U.S.C. 78c(a)(12), government security, municipal security, commercial paper, bankers' acceptances, or commercial bills) shall provide for completion of the transaction within the number of business days in the standard settlement cycle followed by registered broker dealers in the United States, unless otherwise agreed to by the parties at the time of the transaction. The number of business days in the standard settlement cycle shall be determined by reference to paragraph

(a)of SEC Rule 15c6-1, 17 CFR 240.15c6-1(a). Dated: May 29, 2018. Joseph M. Otting, Comptroller of the Currency. Dated at Washington, DC, this 31st of May 2018. By order of the Board of Directors. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. 2018-12267 Filed 6-6-18; 8:45 am]

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