Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify Timing of Premium Assessment Pursuant to Rule 3 of the Government Securities Division for Violation of Minimum Financial Standards, 6059-6060 [E5-430]
Download as PDF
<![CDATA[
Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of the filing also will be
available for inspection and copying at
the principal office of the 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–2005–09 and should
be submitted on or before February 25,
2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–432 Filed 2–3–05; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51095; File No. SR–FICC–
2005–04]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Clarify
Timing of Premium Assessment
Pursuant to Rule 3 of the Government
Securities Division for Violation of
Minimum Financial Standards
January 28, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
January 25, 2005, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change described in Items
I, II, and III below, which items have
been prepared primarily by FICC. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to clarify that the premium to
be assessed pursuant to Rule 3 of the
Government Securities Division
(‘‘GSD’’) for violation of minimum
financial standards will begin to be
assessed on the date FICC becomes
aware of the violation.
15 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate jul<14>2003
18:52 Feb 03, 2005
Jkt 205001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
sound participant base should be
enhanced.
In its filing with the Commission,
FICC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.2
FICC does not believe that the
proposed rule change will have any
impact on or impose any burden on
competition.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8010–01–P
6059
Recently, the Commission approved a
proposed rule change by FICC to amend
Rule 3 of the GSD to modify the penalty
assessment process for violations of
minimum financial standards.3
Pursuant to a provision under GSD Rule
3, which is scheduled to become
effective on January 31, 2005,4 a
violation of a minimum financial
standard by certain netting members
will result in the imposition of a
clearing fund premium which will
continue for ninety calendar days after
the later of (i) the member’s return to
compliance with applicable minimum
financial standards or (ii) FICC’s
discovery of the violation. The purpose
of this proposed rule change is to clarify
that the required clearing fund deposit
premium that will be assessed pursuant
to Rule 3 of the GSD for violation of
minimum financial standards will be
effective beginning on the day of the
violation but will begin to be assessed
on the date FICC becomes aware of the
violation.
The proposed rule change is
consistent with the requirements of
Section 17A of the Act 5 and the rules
and regulations thereunder applicable to
FICC because it assures the safeguarding
of securities and funds which are in the
custody or control of FICC by
encouraging participants to maintain
their minimum financial standards and
to submit their required financial
reports on a timely basis. As a result,
FICC’s ability to maintain a financially
Commission has modified the text of the
summaries prepared by FICC.
3 Securities Exchange Act Release No. 50659
(November 15, 2004), 69 FR 67767 (November 19,
2004) [File No. SR–FICC–2004–11].
4 This effective date was announced to the GSD’s
members in Important Notice GOV.156.04
(November 22, 2004) which is available on FICC’s
Web site at https://www.ficc.com.
5 15 U.S.C. 78q–1.
PO 00000
2 The
Frm 00097
Fmt 4703
Sfmt 4703
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received from
Members, Participants, or Others
No written comments relating to the
proposed rule change have been
solicited or received. FICC will notify
the Commission of any written
comments received by FICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(i) of the Act 6 and Rule 19b–
4(f)(1) 7 thereunder because the
proposed rule constitutes an
interpretation with respect to the
meaning, administration, or
enforcement of an existing rule. At any
time within sixty days of the filing of
such rule change, the Commission may
summarily abrogate such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
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:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an E-mail to rulecomments@sec.gov. Please include File
Number SR–FICC–2005–04 on the
subject line.
Paper Comments
• 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–FICC–2005–04. This file
6 15
7 17
E:\FR\FM\04FEN1.SGM
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
04FEN1
6060
Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Notices
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 FICC and on FICC’s Web site
at https://www.ficc.com. 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–FICC–
2005–04 and should be submitted on or
before February 25, 2005.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.8
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–430 Filed 2–3–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51103; File No. SR–ISE–
2005–04]
Self-Regulatory Organizations; Notice
of Filing and Immediate Effectiveness
of Proposed Rule Change by the
International Securities Exchange, Inc.
Relating to Fee Changes
January 28, 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 January 7,
2005, the International Securities
Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II and III below, which Items
have been prepared by the ISE. The ISE
has designated this proposal as one
establishing or changing a due, fee, or
other charge imposed by the ISE under
Section 19(b)(3)(A)(ii) of the Act,3 and
Rule 19b–4(f)(2) 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
The ISE is proposing to amend its
Schedule of Fees to provide that the
payment for order flow fee shall not
apply to market makers when executing
against Public Customer Orders entered
into the Exchange’s Price Improvement
Mechanism (‘‘PIM’’). The text of the
proposed rule change is available on the
ISE’s Web site (https://
www.iseoptions.com), at the principal
office of the ISE, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
ISE included statements concerning the
purpose of and basis for its proposal and
discussed any comments it had received
regarding the proposal. The text of these
statements may be examined at the
places specified in Item IV below. The
ISE has prepared summaries, set forth in
Sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The ISE states that the purpose of this
proposed rule change is to amend the
ISE Schedule of Fees to provide that the
payment for order flow fee shall not
apply to market makers when executing
against Public Customer Orders entered
into the Exchange’s PIM. According to
the ISE, the Exchange’s PIM, the rules
for which were recently approved by the
Commission,5 will permit an Electronic
Access Member (‘‘EAM’’) to seek price
improvement for its Public Customer
Orders in amounts smaller than the
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
5 See Securities Exchange Act Release No. 50819
(December 8, 2004), 69 FR 75093 (December 15,
2004) (SR–ISE–2003–06).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
VerDate jul<14>2003
18:52 Feb 03, 2005
Jkt 205001
PO 00000
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act 6 in general, and
furthers the objectives of Section 6(b)(4)
of the Act 7 in particular, in that it is
designed to provide for the equitable
allocation of reasonable dues, fees, and
other charges among its members and
other persons using its facilities.
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 that is 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 ISE neither solicited nor received
written comments with respect to the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
establishes or changes a due, fee, or
other charge imposed by the Exchange,
it has become effective pursuant to
Section 19(b)(3)(A)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder.9 Accordingly, the proposal
will take effect upon filing with the
Commission. At any time within 60
days of the filing of the proposed rule
change, the Commission may summarily
abrogate such rule change if it appears
to the Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
3 15
4 17
8 17
standard nickel and dime trading
increments. The PIM grants an EAM a
preference at the best price for trading
against at least a portion of its order, but
allows other members to compete for
that order by providing price
improvement. The ISE states that,
because market makers will be
providing price improvement to Public
Customer Orders when trading in the
PIM, the Exchange will also not charge
market makers a payment for order flow
fee on these trades. Thus, the Exchange
proposes to exempt PIM executions
from the $.55 per contract payment for
order flow fee charged to market
markers when executing against Public
Customer Orders.
Frm 00098
Fmt 4703
Sfmt 4703
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
7 15
E:\FR\FM\04FEN1.SGM
04FEN1
]]>Agencies
[Federal Register Volume 70, Number 23 (Friday, February 4, 2005)]
[Notices]
[Pages 6059-6060]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-430]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51095; File No. SR-FICC-2005-04]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Clarify Timing of Premium Assessment Pursuant to Rule 3 of the
Government Securities Division for Violation of Minimum Financial
Standards
January 28, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 25, 2005, the
Fixed Income Clearing Corporation (``FICC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change
described in Items I, II, and III below, which items have been prepared
primarily by FICC. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to clarify that the
premium to be assessed pursuant to Rule 3 of the Government Securities
Division (``GSD'') for violation of minimum financial standards will
begin to be assessed on the date FICC becomes aware of the violation.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FICC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FICC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\2\
---------------------------------------------------------------------------
\2\ The Commission has modified the text of the summaries
prepared by FICC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Recently, the Commission approved a proposed rule change by FICC to
amend Rule 3 of the GSD to modify the penalty assessment process for
violations of minimum financial standards.\3\ Pursuant to a provision
under GSD Rule 3, which is scheduled to become effective on January 31,
2005,\4\ a violation of a minimum financial standard by certain netting
members will result in the imposition of a clearing fund premium which
will continue for ninety calendar days after the later of (i) the
member's return to compliance with applicable minimum financial
standards or (ii) FICC's discovery of the violation. The purpose of
this proposed rule change is to clarify that the required clearing fund
deposit premium that will be assessed pursuant to Rule 3 of the GSD for
violation of minimum financial standards will be effective beginning on
the day of the violation but will begin to be assessed on the date FICC
becomes aware of the violation.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 50659 (November 15,
2004), 69 FR 67767 (November 19, 2004) [File No. SR-FICC-2004-11].
\4\ This effective date was announced to the GSD's members in
Important Notice GOV.156.04 (November 22, 2004) which is available
on FICC's Web site at https://www.ficc.com.
---------------------------------------------------------------------------
The proposed rule change is consistent with the requirements of
Section 17A of the Act \5\ and the rules and regulations thereunder
applicable to FICC because it assures the safeguarding of securities
and funds which are in the custody or control of FICC by encouraging
participants to maintain their minimum financial standards and to
submit their required financial reports on a timely basis. As a result,
FICC's ability to maintain a financially sound participant base should
be enhanced.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement on Burden on Competition
FICC does not believe that the proposed rule change will have any
impact on or impose any burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received from Members, Participants, or Others
No written comments relating to the proposed rule change have been
solicited or received. FICC will notify the Commission of any written
comments received by FICC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(i) of the Act \6\ and Rule 19b-4(f)(1) \7\
thereunder because the proposed rule constitutes an interpretation with
respect to the meaning, administration, or enforcement of an existing
rule. At any time within sixty days of the filing of such rule change,
the Commission may summarily abrogate such rule change if it appears to
the Commission that such action is necessary or appropriate in the
public interest, for the protection of investors, or otherwise in
furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A)(i).
\7\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml) or
Send an E-mail to rule-comments@sec.gov. Please include
File Number SR-FICC-2005-04 on the subject line.
Paper Comments
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-FICC-2005-04. This
file
[[Page 6060]]
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 FICC and on
FICC's Web site at https://www.ficc.com. 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-FICC-2005-04 and should be submitted on
or before February 25, 2005.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-430 Filed 2-3-05; 8:45 am]
BILLING CODE 8010-01-P
