Self-Regulatory Organizations; Fixed Income Clearing Corporation; Order Approving Proposed Rule Change To Establish a Firm Deadline by Which Members of the Government Securities Division Must Satisfy Clearing Fund Deficiencies, 32859 [E5-2875]
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Federal Register / Vol. 70, No. 107 / Monday, June 6, 2005 / Notices
FICC–2005–07) be and hereby is
approved.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.6
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2874 Filed 6–3–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51754; File No. SR-FICC–
2005–07]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Approving Proposed Rule Change To
Establish a Firm Deadline by Which
Members of the Government Securities
Division Must Satisfy Clearing Fund
Deficiencies
May 27, 2005.
I. Introduction
On March 18, 2005, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–FICC–2005–07 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 April 21, 2005.2 No
comment letters were received. For the
reasons discussed below, the
Commission is approving the proposed
rule change.
II. Description
FICC is establishing a firm deadline
by which members of FICC’s
Government Securities Division
(‘‘GSD’’) must satisfy clearing fund
deficiencies. Currently, GSD’s rules
provide a deadline for a member’s
satisfaction of a clearing fund deficiency
of two hours after GSD has issued a
notice of deficiency to that member.
Under current practice, GSD issues its
clearing fund deficiency notices by
telephone calls typically at 8:30 a.m.
Eastern Time and by a facsimile
containing (i) a cover letter summarizing
the deficiency status and (ii) a detailed
report reflecting the firm’s current
clearing fund requirement and collateral
on deposit. Therefore, deficiency calls
typically must be satisfied by
approximately 10:30 a.m. Eastern Time.
Notwithstanding GSD’s issuance of
clearing fund calls, each member has
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 51550
(April 15, 2005), 70 FR 20781.
1 15
VerDate jul<14>2003
14:25 Jun 03, 2005
Jkt 205001
the ability to access a report each day
detailing its clearing fund balances and
any deficiency thereof generally by
12:30 a.m. Eastern Time.
Taking into account members’ ready
access to clearing fund deficiency
information, the rule change establishes
a firm deadline of 10:30 a.m. Eastern
Time to ensure the timely satisfaction of
clearing fund deficiency calls and to
eliminate current provisions which
correlate the timing of the deadline to
the issuance of the notice by FICC.3 As
a result, it will be incumbent upon
members to access directly the
appropriate report detailing their
clearing fund deposit requirements so
they might satisfy any deficiencies.
III. Discussion
Section 17A(b)(3)(F) of the Act
requires that the rules of a clearing
agency be designed to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible.4 The Commission finds
that FICC’s proposed rule change is
consistent with this requirement
because it will promote timely
satisfaction of clearing fund deficiency
calls and will reduce the amount of risk
to FICC and its members.
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,5 that the
proposed rule change (File No. SR–
FICC–2005–07) be and hereby is
approved.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.6
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–2875 Filed 6–3–05; 8:45 am]
BILLING CODE 8010–01–P
3 Under GSD’s rule, FICC may extend this
deadline if operational or systems difficulties arise
that reasonably prevent members from satisfying
the 10:30 a.m. Eastern Time deadline.
4 15 U.S.C. 78q-1(b)(3)(F).
5 15 U.S.C. 78s(b)(2).
6 17 CFR 200.30–3(a)(12).
PO 00000
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32859
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51753; File No. SR–NSCC–
2005–02]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Order Approving
Proposed Rule Change To Enhance
Automated Customer Account
Transfer Service To Permit the
Automated Notification of Changes to
the Broker-Dealer of Record for
Applicable Insurance Products
May 27, 2005.
I. Introduction
On April 4, 2005, the National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
and on April 12, 2005, amended
proposed rule change SR–NSCC–2005–
02 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
April 20, 2005.2 No comment letters
were received. For the reasons
discussed below, the Commission is
approving the proposed rule change.
II. Description
NSCC is enhancing its Automated
Customer Account Transfer Service
(‘‘ACAT Service’’) to permit the
automated notification of changes to the
broker-dealer of record for applicable
insurance products.
Information regarding the brokerdealer of record for an annuity or life
insurance product is maintained by the
insurance company that is the issuer of
the product. Currently there is no
mechanism within the ACAT Service
that can automate notification of
changes to the broker-dealer of record.
Annuity and life insurance products
have a manually-intensive processing
stream connected with account transfers
relative to the automated processing of
assets such as equity and debt securities
and mutual fund shares.
Under the proposed rule, the
delivering and receiving broker-dealers
for annuities or life insurance products
will be able to communicate
information regarding the change of
broker-dealer of record through the
ACAT Service. The ACAT Service will
communicate the information through a
link to a new product of NSCC’s
Insurance Processing Services (‘‘IPS’’)
called Inforce Transactions (‘‘IFT’’). IFT
1 15
U.S.C. 78s(b)(1).
Exchange Act Release No. 51541
(April 13, 2005), 70 FR 20609 (April 20, 2005).
2 Securities
E:\FR\FM\06JNN1.SGM
06JNN1
Agencies
[Federal Register Volume 70, Number 107 (Monday, June 6, 2005)]
[Notices]
[Page 32859]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-2875]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51754; File No. SR-FICC-2005-07]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Order Approving Proposed Rule Change To Establish a Firm Deadline by
Which Members of the Government Securities Division Must Satisfy
Clearing Fund Deficiencies
May 27, 2005.
I. Introduction
On March 18, 2005, the Fixed Income Clearing Corporation (``FICC'')
filed with the Securities and Exchange Commission (``Commission'')
proposed rule change SR-FICC-2005-07 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 April 21, 2005.\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. 51550 (April 15, 2005),
70 FR 20781.
---------------------------------------------------------------------------
II. Description
FICC is establishing a firm deadline by which members of FICC's
Government Securities Division (``GSD'') must satisfy clearing fund
deficiencies. Currently, GSD's rules provide a deadline for a member's
satisfaction of a clearing fund deficiency of two hours after GSD has
issued a notice of deficiency to that member. Under current practice,
GSD issues its clearing fund deficiency notices by telephone calls
typically at 8:30 a.m. Eastern Time and by a facsimile containing (i) a
cover letter summarizing the deficiency status and (ii) a detailed
report reflecting the firm's current clearing fund requirement and
collateral on deposit. Therefore, deficiency calls typically must be
satisfied by approximately 10:30 a.m. Eastern Time.
Notwithstanding GSD's issuance of clearing fund calls, each member
has the ability to access a report each day detailing its clearing fund
balances and any deficiency thereof generally by 12:30 a.m. Eastern
Time.
Taking into account members' ready access to clearing fund
deficiency information, the rule change establishes a firm deadline of
10:30 a.m. Eastern Time to ensure the timely satisfaction of clearing
fund deficiency calls and to eliminate current provisions which
correlate the timing of the deadline to the issuance of the notice by
FICC.\3\ As a result, it will be incumbent upon members to access
directly the appropriate report detailing their clearing fund deposit
requirements so they might satisfy any deficiencies.
---------------------------------------------------------------------------
\3\ Under GSD's rule, FICC may extend this deadline if
operational or systems difficulties arise that reasonably prevent
members from satisfying the 10:30 a.m. Eastern Time deadline.
---------------------------------------------------------------------------
III. Discussion
Section 17A(b)(3)(F) of the Act requires that the rules of a
clearing agency be designed to assure the safeguarding of securities
and funds which are in the custody or control of the clearing agency or
for which it is responsible.\4\ The Commission finds that FICC's
proposed rule change is consistent with this requirement because it
will promote timely satisfaction of clearing fund deficiency calls and
will reduce the amount of risk to FICC and its members.
---------------------------------------------------------------------------
\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,\5\ that the proposed rule change (File No. SR-FICC-2005-07) be and
hereby is approved.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-2875 Filed 6-3-05; 8:45 am]
BILLING CODE 8010-01-P