Self-Regulatory Organizations; Fixed Income Clearing Corporation; Order Approving Proposed Rule Change To Institute Fines for Late Payment of Cash Obligations and Margin and To Institute Informal Hearing Procedures for Fine Disputes, 2201-2202 [E5-68]
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Federal Register / Vol. 70, No. 8 / Wednesday, January 12, 2005 / Notices
amending and clarifying the time to
assess such a review, CBOE will further
enhance the independence of its
regulatory structure.
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–CBOE–2004–82 on the
subject line.
2. Statutory Basis
Paper Comments
CBOE believes the proposed rule
change is consistent with Section 6(b) of
the Act 3 in general, and furthers the
objectives of section 6(b)(5) of the Act 4
in particular, by promoting just and
equitable principles of trade, and
protecting investors and the public
interest. The proposed rule change will
promote just and equitable principles of
trade and protect investors and the
public interest by further enhancing the
independence of the Exchange’s
disciplinary and regulatory process.
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
450 Fifth Street, NW., Washington, DC
20549–0609.
All submissions should refer to File
Number SR–CBOE–2004–82. This file
number should be included on the
subject line if e-mail 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 (https://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 inspection and copying in
the Commission’s Public Reference
Section, 450 Fifth Street, NW.,
Washington, DC 20549. Copies of such
filing also will be available for
inspection and copying at the principal
office of CBOE. 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–CBOE–
2004–82 and should be submitted on or
before February 2, 2005.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange 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 35 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 findings or
(ii) as to which the self-regulatory
organization consents, the Commission
will (a) by order approve 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:
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.5
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–72 Filed 1–11–05; 8:45 am]
17:37 Jan 11, 2005
5 17
Jkt 205001
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Approving Proposed Rule Change To
Institute Fines for Late Payment of
Cash Obligations and Margin and To
Institute Informal Hearing Procedures
for Fine Disputes
January 5, 2005.
I. Introduction
On March 18, 2004, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) and on
April 16, 2004, amended proposed rule
change SR–FICC–2004–06 pursuant to
section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’).1 Notice
of the proposal was published in the
Federal Register on November 15,
2004.2 No comment letters were
received. For the reasons discussed
below, the Commission is approving the
proposed rule change.
II. Description
The purpose of the proposed rule
change is to institute at the MBSD (i)
fines for the late payment of cash
obligation items and margin deficits and
(ii) informal procedures for disputed
MBSD fines.
1. Fines for Late Payments
The MBSD has for some time imposed
fees in order to promote greater
compliance with its cash obligation and
margin payment deadlines.3 Fees differ
from fines in that fines must be reported
by FICC to the Commission. FICC
believes that, consistent with the
practice of the Government Securities
Division (‘‘GSD’’) of FICC, assessments
for late payment of margin and cash
obligation items should be categorized
as fines. FICC believes that this change
will provide a greater incentive for
participant compliance with appropriate
payment timeframes which will reduce
risk to all MBSD participants.
2. Procedures Relating to Disputed Fines
U.S.C. 78s(b)(1).
Exchange Act Release No. 50642
(November 5, 2004), 69 FR 65662.
3 Currently, the MBSD rules state that failure to
pay a cash settlement obligation will result in the
assessment of a fine. However, the MBSD Schedule
of Charges refers to such charges as ‘‘fees,’’ and they
have been processed as fees by MBSD in the past.
2 Securities
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate jul<14>2003
[Release No. 34–50965; File No. SR–FICC–
2004–06]
1 15
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
4 15
SECURITIES AND EXCHANGE
COMMISSION
The rules of the MBSD currently
contain procedures whereby a
participant can dispute any fine
BILLING CODE 8010–01–P
Electronic Comments
3 15
PO 00000
CFR 200.30–3(a)(12).
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Federal Register / Vol. 70, No. 8 / Wednesday, January 12, 2005 / Notices
assessment through a formal appeal
process. FICC believes that, consistent
with the practice of the GSD, the fine
process will be more effective and
equitable and will provide participants
with additional due process if an initial
less formal dispute process is also
included in MBSD’s rules. The initial
dispute process will be utilized by
participants prior to availing themselves
of the formal appeal process. A
participant that becomes subject to a
fine will have the opportunity within
seven calendar days to dispute the fine
by explaining in writing any mitigating
circumstances that contributed to the
participant’s infraction and to request a
fine waiver. Based on such written
documentation provided by the
participant, management will have the
discretion to waive a fine if it believes
that sufficient mitigating circumstances
have been shown by the participant. If
management waives a fine, it will have
to inform the Membership and Risk
Management Committee (‘‘Committee’’)
at the next regularly scheduled
Committee meeting and will have to
explain its reasons for doing so. The
Committee will then have the
opportunity to overrule management’s
action with respect to the waiver. If
management chooses to not waive a fine
or if its waiver is overruled by the
Committee, the participant will have the
right to pursue the formal hearing
process currently provided for in the
MBSD’s Rules.
FICC will also make parallel changes
with respect to the fine dispute process
to the MBSD’s EPN rules.
In addition, FICC proposed certain
technical changes to the MBSD’s
Schedules of Charges to (i) delete
references to ‘‘MBSCC’’ and replace
them with references to ‘‘MBSD’’ and
(ii) eliminate obsolete fees which are no
longer being charged by the MBSD.
III. Discussion
Section 17A(b)(3)(F) of the Act
requires that the rules of a clearing
agency be designed to remove
impediments to the perfection of a
national system for the prompt and
accurate clearance and settlement of
securities transactions.4 The
Commission finds that FICC’s proposed
rule change is consistent with this
requirement because it is designed to
perfect the mechanism of a national
system for the prompt and accurate
clearance and settlement of securities
transactions by (i) encouraging
participants to make timely payments of
cash obligation items and margin to
MBSD and (ii) clearly setting forth in
MBSD’s rules the informal procedures
for disputing fines which should
provide members with a more efficient
and less burdensome method for the
possible resolution of disputed fines
before a full hearing takes place.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular section 17A of the Act and
the rules and regulations thereunder.
It is therefore ordered, pursuant to
section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
FICC–2004–06) be and hereby is
approved.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.5
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5–68 Filed 1–11–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–50977; File No. SR–NASD–
2004–189]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to Trade
Reporting and Compliance Engine
(‘‘TRACE’’) Fees and Implementation
Date of Stage Two of Dissemination of
TRACE Transaction Information
January 6, 2005.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
28, 2004, the National Association of
Securities Dealers, Inc. (‘‘NASD’’), filed
with the Securities and Exchange
Commission (‘‘Commission’’ or ‘‘SEC’’)
the proposed rule change as described
in items I and II below, which items
have been prepared by NASD. The
NASD has filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to
section 19(b)(3)(A)(iii) of the Act,3 and
Rule 19b–4(f)(6) thereunder,4 which
renders the proposal effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NASD is proposing to amend Rule
7010(k) to terminate the Bond Trade
Dissemination Service (‘‘BTDS’’)
Professional Delayed-Time Data Display
Fee pilot program and the BTDS NonProfessional Real-Time Data Display fee,
relating to Trade Reporting and
Compliance Engine (‘‘TRACE’’)
transaction data fees, and to amend the
implementation date of certain
amendments to NASD Rule 6250,
relating to TRACE transaction data
dissemination and approved by the SEC
in SR–NASD–2004–094 (designated as
‘‘Stage Two’’ of the implementation of
SR–NASD–2004–094) from February 1,
2005 to February 7, 2005. Below is the
text of the proposed rule change.
Proposed new language is in italics;
proposed deletions are in brackets.
*
*
*
*
*
7010. System Services
(a) through (j) No change.
(k) Trade Reporting and Compliance
Engine
The following charges shall be paid
by participants for the use of the Trade
Reporting and Compliance Engine
(‘‘TRACE’’):
System fees
Transaction reporting fees
Market data fees
Level I Trade Report Only Web Browser Access—$20/month per user ID Level II Full
Service Web Browser Access—$80/month
per user ID.
Trades up to and including $200,000 par
value—$0.475/trade;
Trades
between
$201,000 and $999,999 par value—
$0.002375 times the number of bonds traded/trade; Trades of $1,000,000 par value or
more—$2.375/trade.
BTDS Professional Real-Time Data Display—
$60/month per terminal, except
4 15
5 17
U.S.C. 78q–1(b)(3)(F).
CFR 200.30–3(a)(12).
VerDate jul<14>2003
17:37 Jan 11, 2005
1 15
2 17
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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E:\FR\FM\12JAN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
12JAN1
]]>Agencies
[Federal Register Volume 70, Number 8 (Wednesday, January 12, 2005)]
[Notices]
[Pages 2201-2202]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-50965; File No. SR-FICC-2004-06]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Order Approving Proposed Rule Change To Institute Fines for Late
Payment of Cash Obligations and Margin and To Institute Informal
Hearing Procedures for Fine Disputes
January 5, 2005.
I. Introduction
On March 18, 2004, the Fixed Income Clearing Corporation (``FICC'')
filed with the Securities and Exchange Commission (``Commission'') and
on April 16, 2004, amended proposed rule change SR-FICC-2004-06
pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'').\1\ Notice of the proposal was published in the Federal
Register on November 15, 2004.\2\ No comment letters were received. For
the reasons discussed below, the Commission is approving the proposed
rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 50642 (November 5,
2004), 69 FR 65662.
---------------------------------------------------------------------------
II. Description
The purpose of the proposed rule change is to institute at the MBSD
(i) fines for the late payment of cash obligation items and margin
deficits and (ii) informal procedures for disputed MBSD fines.
1. Fines for Late Payments
The MBSD has for some time imposed fees in order to promote greater
compliance with its cash obligation and margin payment deadlines.\3\
Fees differ from fines in that fines must be reported by FICC to the
Commission. FICC believes that, consistent with the practice of the
Government Securities Division (``GSD'') of FICC, assessments for late
payment of margin and cash obligation items should be categorized as
fines. FICC believes that this change will provide a greater incentive
for participant compliance with appropriate payment timeframes which
will reduce risk to all MBSD participants.
---------------------------------------------------------------------------
\3\ Currently, the MBSD rules state that failure to pay a cash
settlement obligation will result in the assessment of a fine.
However, the MBSD Schedule of Charges refers to such charges as
``fees,'' and they have been processed as fees by MBSD in the past.
---------------------------------------------------------------------------
2. Procedures Relating to Disputed Fines
The rules of the MBSD currently contain procedures whereby a
participant can dispute any fine
[[Page 2202]]
assessment through a formal appeal process. FICC believes that,
consistent with the practice of the GSD, the fine process will be more
effective and equitable and will provide participants with additional
due process if an initial less formal dispute process is also included
in MBSD's rules. The initial dispute process will be utilized by
participants prior to availing themselves of the formal appeal process.
A participant that becomes subject to a fine will have the opportunity
within seven calendar days to dispute the fine by explaining in writing
any mitigating circumstances that contributed to the participant's
infraction and to request a fine waiver. Based on such written
documentation provided by the participant, management will have the
discretion to waive a fine if it believes that sufficient mitigating
circumstances have been shown by the participant. If management waives
a fine, it will have to inform the Membership and Risk Management
Committee (``Committee'') at the next regularly scheduled Committee
meeting and will have to explain its reasons for doing so. The
Committee will then have the opportunity to overrule management's
action with respect to the waiver. If management chooses to not waive a
fine or if its waiver is overruled by the Committee, the participant
will have the right to pursue the formal hearing process currently
provided for in the MBSD's Rules.
FICC will also make parallel changes with respect to the fine
dispute process to the MBSD's EPN rules.
In addition, FICC proposed certain technical changes to the MBSD's
Schedules of Charges to (i) delete references to ``MBSCC'' and replace
them with references to ``MBSD'' and (ii) eliminate obsolete fees which
are no longer being charged by the MBSD.
III. Discussion
Section 17A(b)(3)(F) of the Act requires that the rules of a
clearing agency be designed to remove impediments to the perfection of
a national system for the prompt and accurate clearance and settlement
of securities transactions.\4\ The Commission finds that FICC's
proposed rule change is consistent with this requirement because it is
designed to perfect the mechanism of a national system for the prompt
and accurate clearance and settlement of securities transactions by (i)
encouraging participants to make timely payments of cash obligation
items and margin to MBSD and (ii) clearly setting forth in MBSD's rules
the informal procedures for disputing fines which should provide
members with a more efficient and less burdensome method for the
possible resolution of disputed fines before a full hearing takes
place.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular section 17A of the Act and the rules and regulations
thereunder.
It is therefore ordered, pursuant to section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-FICC-2004-06) be and hereby
is approved.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. E5-68 Filed 1-11-05; 8:45 am]
BILLING CODE 8010-01-P
