Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change to Change the Notice Period Required for the Closing of Participant Accounts or Withdrawing From Membership in Its Mortgage-Backed Securities Division, 8648-8649 [E5-692]

Download as PDF 8648 Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Notices things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. The CBOE believes that the SizeQuote Mechanism will create enhanced incentives for ICMPs to quote competitively by giving ICMPs that respond to a SizeQuote request at the best price priority to trade with the SizeQuote Order at that best price and at the improved best price (i.e., one trading increment better), as described above.10 Moreover, ICMPs will have only one opportunity to respond to a SizeQuote request, and ICMPs that do not respond at the best price will lose the opportunity to trade with the SizeQuote Order. The Commission believes that these procedures may encourage ICMPs to quote more competitively. The Commission notes, in addition, that if ICMPs providing SizeQuote responses do not execute the entire SizeQuote Order, the floor broker representing the SizeQuote Order must trade any remaining contracts at the best price, or at the improved best price, as applicable. At the same time, because the floor broker would be permitted to execute the entire SizeQuote Order at two increments better than the ICMPs’ best price, the Commission believes it is essential for the Exchange to monitor the impact of the proposed rule change on the competitive process. Thus, the Commission is approving the proposed rule change on a one-year pilot basis. The CBOE has represented that it will provide the Commission, at the end of the pilot period, a report summarizing the effectiveness of the SizeQuote Mechanism. The Commission intends to carefully review this report before approving any extension of the program. It is therefore ordered, pursuant to section 19(b)(2) of the Act,11 that the proposed rule change (SR–CBOE–2004– 72), as amended, is approved on a pilot basis until February 15, 2006. SECURITIES AND EXCHANGE COMMISSION For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–680 Filed 2–18–05; 8:45 am] (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8010–01–P 10 A public customer order in the electronic book has priority to trade with a SizeQuote Order over any ICMP providing a SizeQuote response at the same price as the order in the electronic book. See CBOE Rule 6.74(f)(i)(C). 11 15 U.S.C. 78s(b)(2). 12 17 CFR 200.30–3(a)(12). VerDate jul<14>2003 19:10 Feb 18, 2005 Jkt 205001 [Release No. 34–51206; File No. SR–FICC– 2004–23] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change to Change the Notice Period Required for the Closing of Participant Accounts or Withdrawing From Membership in Its Mortgage-Backed Securities Division February 15, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on November 22, 2004, 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 this proposed rule change is to amend the notice period required for the closing of participant accounts or withdrawing from membership in the Mortgage-Backed Securities Division (‘‘MBSD’’) of FICC. 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 The purpose of the proposed rules changes is to amend the timeframe in which a participant, limited purpose participant, or EPN user can cease to maintain an account or can voluntarily withdraw as a participant from the U.S.C. 78s(b)(1). Commission has modified the text of the summaries prepared by FICC. PO 00000 1 15 Mortgage-Backed Securities Division (‘‘MBSD’’) of FICC. Currently, the MBSD’s Rules expressly state that in order to cease to maintain an account or to voluntarily withdraw as a participant, a participant must notify FICC of its intent to do so in writing, and thereafter FICC management and the participant must wait ten days for the cessation or withdrawal to become effective. Upon review, FICC has determined that imposing this mandatory time period is unnecessary. FICC believes it should have the flexibility, and thereby provide greater flexibility to participants, to close an account or permit withdrawal within a shorter period. The proposed changes would provide this flexibility by providing that (1) a participant must provide ten days’ written notice of account cessation or withdrawal from membership but the MBSD can accept termination within a shorter period; (2) the requested account cessation or withdrawal would not be effective until accepted by the MBSD, and (3) the MBSD’s acceptance will be evidenced by a notice to all members announcing the account cessation or withdrawal effective date. FICC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act 3 and the rules and regulations thereunder applicable to FICC because the proposed rule change will provide the FICC with greater flexibility with respect to closing accounts of participants and to permitting the voluntary withdrawal of participants thereby better enabling it to safeguard the securities and funds in its custody and control. (B) Self-Regulatory Organization’s Statement on Burden on Competition FICC does not believe that the proposed rule change will have any impact 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 Written comments relating to the proposed rule change have not yet 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 Within thirty-five days of the date of publication of this notice in the Federal 2 The Frm 00081 Fmt 4703 Sfmt 4703 3 15 E:\FR\FM\22FEN1.SGM U.S.C. 78q–1. 22FEN1 Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Notices 8649 Register or within such longer period (i) as the Commission may designate up to ninety days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding 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. 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– 2004–23 and should be submitted on or before March 15, 2005. form that is used by members to report trade data that is not captured. No changes to the text of NASD rules are required by this proposed rule change. For the Commission by the Division of Market Regulation, pursuant to delegated authority. Jill M. Peterson, Assistant Secretary. [FR Doc. E5–692 Filed 2–18–05; 8:45 am] 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: BILLING CODE 8010–01–P In its filing with the Commission, NASD 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. NASD has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of such statements. 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–2004–23 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51187; File No. SR–NASD– 2005–021] Self Regulatory Organizations; Notice of Filing and Immediate Effectiveness of Proposed Rule Change by National Association of Securities Dealers, Inc. To Provide Guidance Regarding Members’ Regulatory Transaction Fees February 10, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Paper Comments notice is hereby given that on February • Send paper comments in triplicate 4, 2005, the National Association of to Jonathan G. Katz, Secretary, Securities Dealers, Inc. (‘‘NASD’’) filed Securities and Exchange Commission, with the Securities and Exchange 450 Fifth Street, NW., Washington, DC Commission (‘‘Commission’’) the 20549–0609. proposed rule change as described in All submissions should refer to File Items I, II, and III below, which Items Number SR–FICC–2004–23. This file have been prepared by NASD. NASD number should be included on the subject line if e-mail is used. To help the has designated the proposed rule change as constituting a stated policy, practice, Commission process and review your or interpretation with respect to the comments more efficiently, please use only one method. The Commission will meaning, administration, or post all comments on the Commission’s enforcement of an existing rule of the self-regulatory organization pursuant to Internet Web site (https://www.sec.gov/ Section 19(b)(3)(A)(i) of the Act 3 and rules/sro.shtml). Copies of the Rule 19b–4(f)(1) thereunder,4 which submission, all subsequent renders the proposal effective upon amendments, all written statements receipt of this filing by the Commission. with respect to the proposed rule The Commission is publishing this change that are filed with the notice to solicit comments on the Commission, and all written proposed rule change from interested communications relating to the persons. proposed rule change between the Commission and any person, other than I. Self-Regulatory Organization’s those that may be withheld from the Statement of the Terms of Substance of public in accordance with the the Proposed Rule Change provisions of 5 U.S.C. 552, will be NASD is filing Notice to Members available for inspection and copying in (‘‘NtM’’) 05–11, providing further the Commission’s Public Reference guidance regarding members’ Section, 450 Fifth Street, NW., obligations under Section 3 of Schedule Washington, DC 20549. Copies of such A to the NASD By-Laws (Regulatory filing also will be available for Transaction Fees) and a self-reporting inspection and copying at the principal office of FICC and on FICC’s Web site 1 15 U.S.C. 78s(b)(1). at https://www.ficc.com. All comments 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(i). received will be posted without change; 4 17 CFR 240.19b–4(f)(1). the Commission does not edit personal VerDate jul<14>2003 19:10 Feb 18, 2005 Jkt 205001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 II. Self-Regulatory OrgChange A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose In August 2004, NASD issued NtM 04–63 (Transaction Fees: New SEC Procedures Relating to section 31 of the Securities Exchange Act of 1934) informing member firms of the new Commission procedures governing the calculation, payment, and collection of fees and assessments on securities transactions owed by national securities exchanges and associations to the Commission pursuant to section 31 of the Act. NtM 04–63 also discussed the obligations of member firms under section 3 of Schedule A to the NASD By-Laws in light of the new Commission procedures. Following the publication of NtM 04– 63, NASD staff has received a significant number of questions from member firms regarding these obligations. Accordingly, NASD staff is providing further guidance regarding these obligations in NtM 05–11. In NtM 05– 11, NASD staff is, among other things, providing guidance on what constitutes an away-from-the-market sale and additional information regarding member firms’ self-reporting obligations. NASD also is reminding members about the restrictions on the use of the Step-Out function in ACT for transferring NASD’s regulatory transaction fee to correspondents or broker-dealer customers. In addition, NtM 05–11 is revoking prior guidance concerning the appropriate rounding methodology used by member firms when they choose to pass regulatory transaction fees to their customers. Specifically, the guidance in NtM 05–11 regarding rounding supersedes the rounding guidance provided in NtM 04– 63 or any prior NtMs and Member Alerts. E:\FR\FM\22FEN1.SGM 22FEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Notices]
[Pages 8648-8649]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-692]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51206; File No. SR-FICC-2004-23]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing of Proposed Rule Change to Change the Notice Period 
Required for the Closing of Participant Accounts or Withdrawing From 
Membership in Its Mortgage-Backed Securities Division

February 15, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 22, 2004, 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 this proposed rule change is to amend the notice 
period required for the closing of participant accounts or withdrawing 
from membership in the Mortgage-Backed Securities Division (``MBSD'') 
of FICC.

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

    The purpose of the proposed rules changes is to amend the timeframe 
in which a participant, limited purpose participant, or EPN user can 
cease to maintain an account or can voluntarily withdraw as a 
participant from the Mortgage-Backed Securities Division (``MBSD'') of 
FICC.
    Currently, the MBSD's Rules expressly state that in order to cease 
to maintain an account or to voluntarily withdraw as a participant, a 
participant must notify FICC of its intent to do so in writing, and 
thereafter FICC management and the participant must wait ten days for 
the cessation or withdrawal to become effective. Upon review, FICC has 
determined that imposing this mandatory time period is unnecessary. 
FICC believes it should have the flexibility, and thereby provide 
greater flexibility to participants, to close an account or permit 
withdrawal within a shorter period. The proposed changes would provide 
this flexibility by providing that (1) a participant must provide ten 
days' written notice of account cessation or withdrawal from membership 
but the MBSD can accept termination within a shorter period; (2) the 
requested account cessation or withdrawal would not be effective until 
accepted by the MBSD, and (3) the MBSD's acceptance will be evidenced 
by a notice to all members announcing the account cessation or 
withdrawal effective date.
    FICC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \3\ and the rules and 
regulations thereunder applicable to FICC because the proposed rule 
change will provide the FICC with greater flexibility with respect to 
closing accounts of participants and to permitting the voluntary 
withdrawal of participants thereby better enabling it to safeguard the 
securities and funds in its custody and control.
---------------------------------------------------------------------------

    \3\ 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 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

    Written comments relating to the proposed rule change have not yet 
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

    Within thirty-five days of the date of publication of this notice 
in the Federal

[[Page 8649]]

Register or within such longer period (i) as the Commission may 
designate up to ninety days of such date if it finds such longer period 
to be appropriate and publishes its reasons for so finding 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:

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-2004-23 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-2004-23. 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 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-2004-23 and should be submitted on 
or before March 15, 2005.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-692 Filed 2-18-05; 8:45 am]
BILLING CODE 8010-01-P

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