Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Types of Securities Eligible for FICC's GCF Repo Service to Include Treasury-Inflation Protected Securities, 21480-21481 [E5-1974]
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21480
Federal Register / Vol. 70, No. 79 / Tuesday, April 26, 2005 / Notices
with its ongoing construction program,
to pay scheduled maturities and/or
refundings of its securities, to repay
short-term indebtedness to the extent
outstanding and for other general
corporate purposes.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 05–8248 Filed 4–25–05; 8:45 am]
BILLING CODE 8010–01–M
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51579; File No. SR–FICC–
2005–08]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Expand the
Types of Securities Eligible for FICC’s
GCF Repo Service to Include TreasuryInflation Protected Securities
April 20, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
April 8, 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
FICC is seeking to amend the rules of
its Government Securities Division
(‘‘GSD’’) to expand the types of
securities eligible for the GCF Repo
service to include Treasury InflationProtected Securities (‘‘TIPS’’), a
Treasury security whose principal
amount is adjusted for inflation.
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
1 15
U.S.C. 78s(b)(1).
VerDate jul<14>2003
13:32 Apr 25, 2005
Jkt 205001
summaries, set forth in Sections (A), (B),
and (C) below, of the most significant
aspects of these statements.2
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The GCF Repo service is a significant
alternative financing vehicle to the
delivery versus payment and tri-party
repo markets. Currently, most Treasury
securities, non-mortgage-backed agency
securities, and fixed and adjustable rate
mortgage-backed securities are eligible
for this service.3 FICC is expanding its
rules to also make eligible TIPS.
When the GCF Repo service was
implemented, TIPS were not generally
accepted as collateral in tri-party repo
arrangements and therefore were not
included in the service. Since then,
TIPS have gained considerable
acceptance in the marketplace for triparty and other trading practices. TIPS
are currently netting eligible for the
GSD’s delivery versus payment service,
and FICC has received requests from
members to make TIPS eligible for the
GCF Repo service. FICC has received an
endorsement from the Funding Practices
Committee of The Bond Market
Association with respect to this
proposal.4
TIPS, which are issued in terms of 5,
10, and 20 years, have the same basic
characteristics of other Treasury
securities and are generally considered
to be of the same low risk level.5 FICC
has determined that with respect to its
risk management processes, TIPS would
be subject to the same maturity ranges,
offset classes, margin rates, and
disallowance factors as are other
Treasury securities.6
For purposes of GSD Rule 20 (Special
Provisions for GCF Repo Transactions),
general references to U.S. Treasury bills,
2 The Commission has modified the text of the
summaries prepared by FICC.
3 Securities Exchange Act Release Nos. 40623
(October 30, 1998), 63 FR 59831 (November 5, 1998)
[File No. SR–GSCC–98–02] and 42996 (June 30,
2000), 65 FR 42740 [File No. SR–GSCC–00–04].
4 FICC has obtained the Generic CUSIP Number
necessary for the inclusion of TIPS as a ‘‘GCF Repo
Security’’ on its master file of eligible securities.
Upon effectiveness of this proposal, FICC will
effectuate the proposed change by listing this
Generic CUSIP Number on the master file. The date
of such listing will be announced to members by
Important Notice.
5 TIPS are issued through the auction process, are
direct obligations of the U.S. government, and are
backed by its full faith and credit.
6 As such, references to ‘‘GCF Treasury
Securities’’ or ‘‘GCF Treasuries’’ in the Margin
Factor and Offset Class Schedules and Disallowance
Percentage Schedules that are annexed to the GSD
Rules will include TIPS upon effectiveness of this
filing.
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
notes, or bonds do not include TIPS.7
Therefore, TIPS could not be used
within the GCF Repo service to satisfy
obligations to post or return any other
type of collateral.8
FICC believes the proposed rule
change is consistent with the
requirements of Section 17A of the Act 9
and the rules and regulations
thereunder applicable to FICC because it
allows FICC to expand an important
service that provides members with a
continuing ability to engage in general
collateral trading activity in a safe and
efficient manner. As such, the proposed
rule facilitates the prompt and accurate
clearance and settlement of securities
transactions and assures the
safeguarding of securities and funds
which are in the custody or control of
FICC or for which it is responsible.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
FICC does not believe that the
proposed rule change will have an
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 were not 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) of the Act10 and Rule 19b–
4(f)(4) 11 thereunder because the
proposed rule does not significantly
affect the respective rights or obligations
of the clearing agency or persons using
the service and does not adversely affect
the safeguarding of securities or funds
in the custody or control of FICC or for
which it is responsible. The rule change
will be implemented on the date FICC
lists the Generic CUSIP number for TIPS
as a ‘‘GCF Repo Security’’ on its master
file of eligible securities, which date
will be announced to members by
7 The proposed rule change also amends GSD’s
Rule 20 to make clear that reference to ‘‘U.S.
Treasury bills, notes or bonds’’ therein shall not
include Treasury Inflation-Protected Securities.
8 However, as is consistent with the existing GCF
Repo provisions, U.S. Treasury bills, notes, or
bonds (or cash) may generally be used to satisfy
obligations to post or return other collateral types
and therefore could be used to satisfy any such
obligations involving TIPS.
9 15 U.S.C. 78q–1.
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(4).
E:\FR\FM\26APN1.SGM
26APN1
Federal Register / Vol. 70, No. 79 / Tuesday, April 26, 2005 / Notices
Important Notice. At any time within
sixty days of the filing of the proposed
rule change, the Commission may
summarily abrogate the 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.
should refer to File Number SR–FICC–
2005–08 and should be submitted on or
before May 17, 2005.
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
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–2005–08 on the
subject line.
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Establish Fees for
Non-Members Using the New Nasdaq
Workstation
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–2005–08. 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
filings 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
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 March 30,
2005, the National Association of
Securities Dealers, Inc. (‘‘NASD’’),
through its subsidiary, The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’), 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 Nasdaq. Nasdaq
has filed the proposal as a ‘‘noncontroversial’’ rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(6) thereunder,4 which renders
the proposed rule change effective
immediately upon filing. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
VerDate jul<14>2003
11:52 Apr 25, 2005
Jkt 205001
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.12
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1974 Filed 4–25–05; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51583; File No. SR–NASD–
2005–042]
April 20, 2005.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
Nasdaq proposes to establish fees for
non-members using the new Nasdaq
Workstation. Nasdaq will begin making
the Nasdaq Workstation available to
users on or about May 2, 2005.
The text of the proposed rule change
is available on the NASD’s Web site
(https://www.nasd.com), at the NASD’s
Office of the Secretary, and at the
Commission’s Public Reference Room.
PO 00000
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
1 15
Frm 00093
Fmt 4703
Sfmt 4703
21481
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
Nasdaq 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. Nasdaq 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
As announced in recent Nasdaq Head
Trader alerts,5 Nasdaq is replacing its
current front-end workstation, the
Nasdaq Workstation II (the ‘‘NWII’’),
with a new front-end offering. The new
Nasdaq WorkstationSM will be available
through a dedicated high-bandwidth
circuit or an internet broadband
connection, but in contrast to the NWII,
the new Nasdaq Workstation will not
require use of a service delivery
platform (‘‘SDP’’), a hardware unit
located at the subscriber’s premises.
Nasdaq believes the elimination of SDPs
would result in substantial cost savings
to users of the new Nasdaq Workstation
in comparison with the NWII. The main
version of the Nasdaq Workstation will
be referred to as ‘‘Nasdaq Workstation
Trader,’’ and can be used by members
for order and quotation entry, trade
reporting, and outbound order routing.6
In SR–NASD–2005–041,7 which is
being filed on an immediately effective
basis, Nasdaq has proposed applying the
fee schedule described below to
members using the new Workstation. In
this filing, Nasdaq is proposing applying
the same fee schedule to non-members
that subscribe to this service. The nonmembers that currently subscribe to the
NWII are service bureaus that use the
NWII to monitor information supplied
over NWII terminals for purposes of
comparison with data supplied through
their own services. Non-members are
not permitted to use the NWII, and will
5 See Nasdaq Head Trader Alert 2005–019 (March
1, 2005) and Nasdaq Head Trader Alert 2005–009
(January 25, 2005) (https://www.nasdaqtrader.com/
dynamic/ newsindex/headtraderalerts_2005.stm)
and Nasdaq Head Trader Alert 2004–105 (July 30,
2004).
6 Nasdaq’s current Weblink ACT product, which
is used for trade reporting, is being renamed
‘‘Nasdaq Workstation Post Trade.’’
7 Securities Exchange Act Release No. 51581
(April 20, 2005).
E:\FR\FM\26APN1.SGM
26APN1
]]>Agencies
[Federal Register Volume 70, Number 79 (Tuesday, April 26, 2005)]
[Notices]
[Pages 21480-21481]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1974]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51579; File No. SR-FICC-2005-08]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To
Expand the Types of Securities Eligible for FICC's GCF Repo Service to
Include Treasury-Inflation Protected Securities
April 20, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on April 8, 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
FICC is seeking to amend the rules of its Government Securities
Division (``GSD'') to expand the types of securities eligible for the
GCF Repo service to include Treasury Inflation-Protected Securities
(``TIPS''), a Treasury security whose principal amount is adjusted for
inflation.
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 GCF Repo service is a significant alternative financing vehicle
to the delivery versus payment and tri-party repo markets. Currently,
most Treasury securities, non-mortgage-backed agency securities, and
fixed and adjustable rate mortgage-backed securities are eligible for
this service.\3\ FICC is expanding its rules to also make eligible
TIPS.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release Nos. 40623 (October 30,
1998), 63 FR 59831 (November 5, 1998) [File No. SR-GSCC-98-02] and
42996 (June 30, 2000), 65 FR 42740 [File No. SR-GSCC-00-04].
---------------------------------------------------------------------------
When the GCF Repo service was implemented, TIPS were not generally
accepted as collateral in tri-party repo arrangements and therefore
were not included in the service. Since then, TIPS have gained
considerable acceptance in the marketplace for tri-party and other
trading practices. TIPS are currently netting eligible for the GSD's
delivery versus payment service, and FICC has received requests from
members to make TIPS eligible for the GCF Repo service. FICC has
received an endorsement from the Funding Practices Committee of The
Bond Market Association with respect to this proposal.\4\
---------------------------------------------------------------------------
\4\ FICC has obtained the Generic CUSIP Number necessary for the
inclusion of TIPS as a ``GCF Repo Security'' on its master file of
eligible securities. Upon effectiveness of this proposal, FICC will
effectuate the proposed change by listing this Generic CUSIP Number
on the master file. The date of such listing will be announced to
members by Important Notice.
---------------------------------------------------------------------------
TIPS, which are issued in terms of 5, 10, and 20 years, have the
same basic characteristics of other Treasury securities and are
generally considered to be of the same low risk level.\5\ FICC has
determined that with respect to its risk management processes, TIPS
would be subject to the same maturity ranges, offset classes, margin
rates, and disallowance factors as are other Treasury securities.\6\
---------------------------------------------------------------------------
\5\ TIPS are issued through the auction process, are direct
obligations of the U.S. government, and are backed by its full faith
and credit.
\6\ As such, references to ``GCF Treasury Securities'' or ``GCF
Treasuries'' in the Margin Factor and Offset Class Schedules and
Disallowance Percentage Schedules that are annexed to the GSD Rules
will include TIPS upon effectiveness of this filing.
---------------------------------------------------------------------------
For purposes of GSD Rule 20 (Special Provisions for GCF Repo
Transactions), general references to U.S. Treasury bills, notes, or
bonds do not include TIPS.\7\ Therefore, TIPS could not be used within
the GCF Repo service to satisfy obligations to post or return any other
type of collateral.\8\
---------------------------------------------------------------------------
\7\ The proposed rule change also amends GSD's Rule 20 to make
clear that reference to ``U.S. Treasury bills, notes or bonds''
therein shall not include Treasury Inflation-Protected Securities.
\8\ However, as is consistent with the existing GCF Repo
provisions, U.S. Treasury bills, notes, or bonds (or cash) may
generally be used to satisfy obligations to post or return other
collateral types and therefore could be used to satisfy any such
obligations involving TIPS.
---------------------------------------------------------------------------
FICC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act \9\ and the rules and
regulations thereunder applicable to FICC because it allows FICC to
expand an important service that provides members with a continuing
ability to engage in general collateral trading activity in a safe and
efficient manner. As such, the proposed rule facilitates the prompt and
accurate clearance and settlement of securities transactions and
assures the safeguarding of securities and funds which are in the
custody or control of FICC or for which it is responsible.
---------------------------------------------------------------------------
\9\ 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 an
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 were not 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) of the Act\10\ and Rule 19b-4(f)(4) \11\
thereunder because the proposed rule does not significantly affect the
respective rights or obligations of the clearing agency or persons
using the service and does not adversely affect the safeguarding of
securities or funds in the custody or control of FICC or for which it
is responsible. The rule change will be implemented on the date FICC
lists the Generic CUSIP number for TIPS as a ``GCF Repo Security'' on
its master file of eligible securities, which date will be announced to
members by
[[Page 21481]]
Important Notice. At any time within sixty days of the filing of the
proposed rule change, the Commission may summarily abrogate the 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
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-2005-08 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-2005-08. 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 filings 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-2005-08 and should be submitted on
or before May 17, 2005.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1974 Filed 4-25-05; 8:45 am]
BILLING CODE 8010-01-P
