Self-Regulatory Organizations; The Fixed Income Clearing Corporation; Notice of Filing of an Amended Proposed Rule Change Relating to Trade Submission Requirements and Pre-Netting, 13222-13223 [E5-1184]

Download as PDF 13222 Federal Register / Vol. 70, No. 52 / Friday, March 18, 2005 / Notices For the foregoing reasons, the Commission finds that the proposed rule change, as amended, is consistent with the Act and the rules and regulations thereunder applicable to a national securities exchange, and, in particular, with Section 6(b)(5) of the Act.26 It is therefore ordered, pursuant to Section 19(b)(2) of the Act,27 that the proposed rule change (SR–CBOE–2004– 75), as amended, is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.28 Jill M. Peterson, Assistant Secretary. [FR Doc. E5–1185 Filed 3–17–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–51365; File No. SR–FICC– 2004–15] Self-Regulatory Organizations; The Fixed Income Clearing Corporation; Notice of Filing of an Amended Proposed Rule Change Relating to Trade Submission Requirements and Pre-Netting March 14, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on March 4, 2005, The Fixed Income Clearing Corporation (‘‘FICC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) an amendment to a proposed rule change as described in Items I, II, and III below. Prior to being amended the proposed rule change was published in the Federal Register on November 4, 2004.2 The Commission is publishing this notice to solicit comments on the proposed rule change as amended. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change As previously noticed, the proposed rule change would amend the rules of FICC’s Government Securities Division (‘‘GSD’’) to broaden its trade submission requirements and to prohibit pre-netting activities of certain affiliates of its members. As amended, the proposed rule change would also require netting 26 15 U.S.C. 78f(b)(5). U.S.C. 78s(b)(2). 28 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 Securities Exchange Act Release No. 50607 (October 29, 2004), 69 FR 64343. 27 15 VerDate jul<14>2003 16:14 Mar 17, 2005 Jkt 205001 members to report foreign affiliate trades to 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 such statements.3 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The proposed rule change as originally filed would require GSD members of FICC to submit data on trades executed or whose settlement is cleared and guaranteed by affiliates of GSD members that are registered brokerdealers, banks, or futures commission merchants organized in the U.S. Because the proposed rule would define a covered affiliate as an entity organized in the U.S., the rule would not apply to trades executed by non-U.S. affiliates of GSD members. FICC has filed an amendment to the proposed rule change that would require a netting member to report foreign affiliate trades to FICC. The trades would be reported to FICC on an annual basis in the format and within the timeframe specified by guidelines to be issued by FICC. The reporting requirement would not apply to foreign affiliate trades of a foreign affiliate that has executed less than an average of 30 or more foreign affiliate trades per business day during any one-month period within the prior year. The amendment proposes to add definitions of ‘‘foreign affiliate’’ and ‘‘foreign affiliate trade’’ to GSD’s rules. A ‘‘foreign affiliate’’ would be defined as an affiliate of a netting member that is not itself a netting member and is a foreign person. A ‘‘foreign affiliate trade’’ would be defined as a trade executed by a ‘‘foreign affiliate’’ of a netting member that satisfies the following criteria: (i) The trade is eligible for netting pursuant to GSD’s rules and (ii) the trade is executed with another netting member, with a covered affiliate, or with a ‘‘foreign affiliate’’ of another netting member. ‘‘Foreign 3 The Commission has modified the text of the summaries prepared by FICC. PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 affiliate trade’’ would not include a trade that is executed between a member and its affiliate or between affiliates of the same member. For purposes of this definition, the term ‘‘executed’’ shall include trades that are cleared and guaranteed as to their settlement by the foreign affiliate. The proposed rule change is consistent with the requirements of Section 17A of the Act 4 and the rules and regulations thereunder applicable to FICC because the proposed rule change should reduce systemic risk in the government securities marketplace and therefore facilitate the establishment of a national system for the prompt and accurate clearance and settlement of securities transactions. (B) Self-Regulatory Organization’s Statement on Burden on Competition FICC does not believe that the proposed rule change would 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 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 the 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: 4 15 E:\FR\FM\18MRN1.SGM U.S.C. 78q–1. 18MRN1 Federal Register / Vol. 70, No. 52 / Friday, March 18, 2005 / Notices 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–2004–15 on the subject line. • 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–2004–15. 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– 2004–15 and should be submitted on or before April 8, 2005. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.5 Jill M. Peterson, Assistant Secretary. [FR Doc. E5–1184 Filed 3–17–05; 8:45 am] BILLING CODE 8010–01–P CFR 200.30–3(a)(12). VerDate jul<14>2003 16:14 Mar 17, 2005 [Release No. 34–51360; File No. SR–PCX– 2005–15] Self-Regulatory Organizations; Pacific Exchange, Inc.; Order Granting Approval of Proposed Rule Change Relating to Primary Only Orders March 11, 2005. Paper Comments 5 17 SECURITIES AND EXCHANGE COMMISSION Jkt 205001 On February 1, 2005, the Pacific Exchange, Incorporated (‘‘PCX’’ or ‘‘Exchange’’), through its wholly-owned subsidiary, PCX Equities (‘‘PCXE’’), filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘;Act’’) 1 and Rule 19b–4 thereunder,2 to amend PCXE Rule 7.31(x), to provide that Primary Only Orders (‘‘PO Orders’’) may apply to Nasdaq securities traded on the Archipelago Exchange (‘‘ArcaEx’’) facility, and may be either market or limit orders. The proposed rule change was published for comment in the Federal Register on February 9, 2005.3 The Commission received no comments on the proposal. This order approves the proposed rule change. After careful review, the Commission finds that the proposal is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange 4 and, in particular, the requirements of Section 6 of the Act 5 and the rules and regulations thereunder. The Commission finds specifically that the proposed rule change is consistent with Section 6(b)(5) of the Act 6 because it is designed to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and 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. As proposed, PCXE Rule 7.31(x) would define a PO Order as a market or limit order that is to be routed to the primary market, until a cut-off time periodically determined by PCXE, and would expand the PO Order applicability from exclusively exchangeU.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 51125 (February 2, 2005), 70 FR 6914. 4 In approving this proposed rule change, the Commission notes that it has considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 5 15 U.S.C. 78f. 6 15 U.S.C. 78f(b)(5). PO 00000 1 15 2 17 Frm 00065 Fmt 4703 Sfmt 4703 13223 listed securities to include Nasdaq Stock Market, Inc. (‘‘Nasdaq’’) securities. The Commission notes that PO market orders in Nasdaq securities received prior to 6:28 a.m. PT will be marked OnOpen and will be routed to Nasdaq for possible participation in Nasdaq’s Opening Cross. As such, the Commission believes that implementing these changes may provide market participants with more choices for executing orders on the opening. In addition, the Commission believes that expanding the applicability of PO Orders to limit orders and to Nasdaq listed securities should enhance the opportunity for ArcaEx users to have their orders executed on the primary market. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,7 that the proposed rule change (SR–PCX–2005– 15) be, and it hereby is, approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Jill M. Peterson, Assistant Secretary. [FR Doc. E5–1183 Filed 3–17–05; 8:45 am] BILLING CODE 8010–01–P DEPARTMENT OF TRANSPORTATION Office of the Secretary Aviation Proceedings, Agreements Filed the Week Ending March 4, 2005 The following Agreements were filed with the Department of Transportation under the provisions of 49 U.S.C. 412 and 414. Answers may be filed within 21 days after the filing of the application. Docket Number: OST–2005–20535. Date Filed: March 3, 2005. Parties: Members of the International Air Transport Association. Subject: PTC3 0829 dated 4 March 2005, Mail Vote 443—Resolution 010o— Special Amending Resolution from Japan to South East Asia. r1–r6, Intended effective date: 1 April 2005. Renee V. Wright, Acting Program Manager, Docket Operations, Alternate Federal Register Liaison. [FR Doc. 05–5353 Filed 3–17–05; 8:45 am] BILLING CODE 4910–62–P 7 15 8 17 E:\FR\FM\18MRN1.SGM U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 18MRN1

Agencies

[Federal Register Volume 70, Number 52 (Friday, March 18, 2005)]
[Notices]
[Pages 13222-13223]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1184]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51365; File No. SR-FICC-2004-15]


Self-Regulatory Organizations; The Fixed Income Clearing 
Corporation; Notice of Filing of an Amended Proposed Rule Change 
Relating to Trade Submission Requirements and Pre-Netting

March 14, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 4, 2005, The Fixed 
Income Clearing Corporation (``FICC'') filed with the Securities and 
Exchange Commission (``Commission'') an amendment to a proposed rule 
change as described in Items I, II, and III below. Prior to being 
amended the proposed rule change was published in the Federal Register 
on November 4, 2004.\2\ The Commission is publishing this notice to 
solicit comments on the proposed rule change as amended.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 50607 (October 29, 
2004), 69 FR 64343.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    As previously noticed, the proposed rule change would amend the 
rules of FICC's Government Securities Division (``GSD'') to broaden its 
trade submission requirements and to prohibit pre-netting activities of 
certain affiliates of its members. As amended, the proposed rule change 
would also require netting members to report foreign affiliate trades 
to 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 such 
statements.\3\
---------------------------------------------------------------------------

    \3\ 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 proposed rule change as originally filed would require GSD 
members of FICC to submit data on trades executed or whose settlement 
is cleared and guaranteed by affiliates of GSD members that are 
registered broker-dealers, banks, or futures commission merchants 
organized in the U.S. Because the proposed rule would define a covered 
affiliate as an entity organized in the U.S., the rule would not apply 
to trades executed by non-U.S. affiliates of GSD members.
    FICC has filed an amendment to the proposed rule change that would 
require a netting member to report foreign affiliate trades to FICC. 
The trades would be reported to FICC on an annual basis in the format 
and within the timeframe specified by guidelines to be issued by FICC. 
The reporting requirement would not apply to foreign affiliate trades 
of a foreign affiliate that has executed less than an average of 30 or 
more foreign affiliate trades per business day during any one-month 
period within the prior year.
    The amendment proposes to add definitions of ``foreign affiliate'' 
and ``foreign affiliate trade'' to GSD's rules. A ``foreign affiliate'' 
would be defined as an affiliate of a netting member that is not itself 
a netting member and is a foreign person. A ``foreign affiliate trade'' 
would be defined as a trade executed by a ``foreign affiliate'' of a 
netting member that satisfies the following criteria: (i) The trade is 
eligible for netting pursuant to GSD's rules and (ii) the trade is 
executed with another netting member, with a covered affiliate, or with 
a ``foreign affiliate'' of another netting member. ``Foreign affiliate 
trade'' would not include a trade that is executed between a member and 
its affiliate or between affiliates of the same member. For purposes of 
this definition, the term ``executed'' shall include trades that are 
cleared and guaranteed as to their settlement by the foreign affiliate.
    The proposed rule change is consistent with the requirements of 
Section 17A of the Act \4\ and the rules and regulations thereunder 
applicable to FICC because the proposed rule change should reduce 
systemic risk in the government securities marketplace and therefore 
facilitate the establishment of a national system for the prompt and 
accurate clearance and settlement of securities transactions.
---------------------------------------------------------------------------

    \4\ 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 would 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 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 the 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:

[[Page 13223]]

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-2004-15 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-2004-15. 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-2004-15 and should be submitted on 
or before April 8, 2005.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-1184 Filed 3-17-05; 8:45 am]
BILLING CODE 8010-01-P
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