Self-Regulatory Organizations; The Depository Trust Company; Order Granting Approval of a Proposed Rule Change Relating to a Modification of the Fee Structure, 36678-36679 [E5-3283]
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Federal Register / Vol. 70, No. 121 / Friday, June 24, 2005 / Notices
19b–4(f)(6)(iii) permits the Commission
to designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange satisfied the five-day prefiling requirement. The Exchange
requests that the Commission waive the
30-day operative delay, as specified in
Rule 19b–4(f)(6)(iii),12 and designate the
proposed rule change to become
operative immediately.
The Commission hereby grants that
request.13 The Commission believes that
waiving the 30-day operative date is
consistent with the protection of
investors and the public interest
because doing so will allow the
Exchange’s Fees Schedule and Rules to
be consistent with the Commission’s
guidance on Section 31 without undue
delay.
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,
or otherwise in the furtherance of the
purposes of the Act.
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. Copies of such 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–2005–38 and should
be submitted on or before July 15, 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:
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3295 Filed 6–23–05; 8:45 am]
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–CBOE–2005–38 on the
subject line.
[Release No. 34–51870; File No. SR–DTC–
2005–03]
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–9303.
All submissions should refer to File
Number SR–CBOE–2005–38. 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
June 17, 2005.
12 17
CFR 240.19b–4(f)(6)(iii).
the purposes only of accelerating the
operative date of this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 C.S.C. 78c(f).
13 For
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19:06 Jun 23, 2005
Jkt 205001
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.14
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Self-Regulatory Organizations; The
Depository Trust Company; Order
Granting Approval of a Proposed Rule
Change Relating to a Modification of
the Fee Structure
I. Introduction
On April 26, 2005, The Depository
Trust Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) proposed rule change
SR–DTC–2005–03 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 May 13, 2005.2 No comment letters
were received. For the reasons
discussed below, the Commission is
granting approval of the proposed rule
change.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 51675,
(May 9, 2005), 70 FR 25630.
PO 00000
14 17
1 15
Frm 00122
Fmt 4703
Sfmt 4703
II. Description
DTC is a subsidiary of the Depository
Trust and Clearing Corporation
(‘‘DTCC’’). Participants of DTC and their
affiliates may from time to time utilize
the services of DTCC subsidiaries that
are not registered as clearing agencies
with the Commission. Such subsidiaries
include Global Asset Solutions LLC and
DTCC Deriv/Serv LLC. In addition,
participants of DTC and their affiliates
may utilize the services of other third
parties through DTCC. DTC has
determined that it would be more
efficient and less costly if the fees that
participants agree to pay for such
services were collected by DTC rather
than through independent billing
mechanisms that would otherwise have
to be established by each subsidiary of
DTCC that is not a registered clearing
agency and by each third party that is
not a registered clearing agency.
The proposed rule change will make
clear that DTC may collect from its
participants fees and charges of other
subsidiaries of DTCC and of other third
party service providers. DTC will enter
into appropriate agreements with such
subsidiaries and other third party
service providers regarding DTC’s
collection of fees. Furthermore, the rule
change makes clear that as a part of its
collecting fees and charges for services
provided to its participants, DTC may
similarly collect fees and charges for
services provided to affiliates of its
participants.
III. Discussion
Section 17A(a)(1)(B) of the Act
provides that inefficient procedures for
clearance and settlement impose
unnecessary costs on investors and
persons facilitating transactions by and
acting on behalf of investors.3 Although
the services provided by unregulated
DTCC subsidiaries and by other third
parties are not core clearance and
settlement services, they are related to
the clearance and settlement operations
of DTC and of its participants. By
streamlining the fee collection process
for these services so that DTC’s
participants will pay these fees to DTC
as a part of their normal monthly DTC
bills, the proposed rule change should
help to improve efficiency in the
operations of DTC participants and
thereby should remove unnecessary cost
for DTC participants and for the persons
(i.e., the DTCC subsidiaries and the
other entities providing services to DTC
participants) facilitating transactions by
and acting on behalf of investors.
Accordingly, the Commission finds that
3 15
E:\FR\FM\24JNN1.SGM
U.S.C. 78q–1(a)(A)(B).
24JNN1
Federal Register / Vol. 70, No. 121 / Friday, June 24, 2005 / Notices
the proposed rule change is consistent
with the requirements of Section 17A of
the Act.
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, that the
proposed rule change (File No. SR–
DTC–2005–03) be and hereby is
approved.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.4
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3283 Filed 6–23–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51875; File No. SR–FICC–
2005–01]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Approving a Proposed Rule Change
Relating to Timely Notification of
Significant Events That Effect a
Change in Control of a Member or
Could Have a Substantial Impact on a
Member’s Business or Financial
Condition
June 17, 2005.
On January 6, 2005, the Fixed Income
Clearing Corporation (‘‘FICC’’) 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 on
May 13, 2005, amended the proposed
rule change.2 Notice of the proposal was
published in the Federal Register on
May 10, 2005.3 No comment letters were
received. For the reasons discussed
below, the Commission is approving the
proposed rule change.
I. Description
The proposed rule change will require
certain FICC members to notify FICC
when they experience an event that
4 17
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 Republication of the notice is not required
because the amendment to the proposed rule
change merely renumbered certain proposed and
existing sections of the rule text that were included
in the original filing.
3 Securities Exchange Act Release No. 51643 (May
2, 2005); 70 FR 24665.
VerDate jul<14>2003
19:06 Jun 23, 2005
Jkt 205001
would effect a change in control of such
member or could have a substantial
impact on such member’s business or
financial condition. Under the rule
change, GSD netting members and
MBSD participants will be required to
notify FICC upon experiencing a
‘‘reportable event.’’ The term
‘‘reportable event’’ is defined as an
event that would effect a change in
control of a GSD netting member or an
MBSD participant or an event that could
have a substantial impact on a netting
member’s/participant’s business or
financial condition including, but not
limited to: (a) Material organizational
changes including mergers, acquisitions,
changes in corporate form, name
changes, changes in the ownership of a
netting member/participant or its
affiliates, and material changes in
management; (b) material changes in
business lines, including new business
lines undertaken; and (c) status as a
defendant in litigation which could
reasonably impact the netting
member’s/participant’s financial
condition or ability to conduct
business.4
In order to provide FICC with enough
time to analyze the implications of a
‘‘reportable event’’ and to determine an
appropriate course of action, a netting
member/participant must submit
written notice to FICC at least 90
calendar days prior to the effective date
of such ‘‘reportable event’’ unless the
netting member/participant
demonstrates that it could not have
reasonably done so and also has
provided oral and written notice to FICC
as soon as possible. Failure to so notify
FICC will result in a $5,000 fine.
II. Discussion
Section 17A(b)(3)(F) of the Act
requires, among other things, that the
rules of a clearing be designed to assure
the safeguarding of securities and funds
which are in its custody or control.5 The
proposed rule change is consistent with
the requirements of Section 17A of the
Act and the rules and regulations
thereunder because it should enhance
FICC’s ability to collect and evaluate in
a timely manner the type of information
that it needs in order to properly
manage risks and thereby to better
safeguard the securities and funds for
which it is in control.
III. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
4 A similar requirement was added as Addendum
T to the National Securities Clearing Corporation’s
Rules in 1998. Securities Exchange Act Release No.
40582 (Oct. 20, 1998), 63 FR 57346 (Oct. 27, 1998).
5 15 U.S.C. 78q–1(b)(3)(F).
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
36679
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
FICC–2005–01) be, and hereby is,
approved.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.7
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3281 Filed 6–23–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51865; File No. SR–FICC–
2005–11]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change to
Institute a Netting Process for Fail
Deliver and Fail Receive Obligations
for Netting Members in Its Government
Securities Division
June 17, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
May 19, 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 this proposed rule
change is to amend the rules of FICC’s
Government Securities Division
(‘‘GSD’’) to institute a process to net
netting members’ fail deliver and fail
receive obligations with their current
settlement obligations on a daily basis.
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
6 15
U.S.C. 78q–1.
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
7 17
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]]>Agencies
[Federal Register Volume 70, Number 121 (Friday, June 24, 2005)]
[Notices]
[Pages 36678-36679]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3283]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51870; File No. SR-DTC-2005-03]
Self-Regulatory Organizations; The Depository Trust Company;
Order Granting Approval of a Proposed Rule Change Relating to a
Modification of the Fee Structure
June 17, 2005.
I. Introduction
On April 26, 2005, The Depository Trust Company (``DTC'') filed
with the Securities and Exchange Commission (``Commission'') proposed
rule change SR-DTC-2005-03 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 May 13, 2005.\2\ No comment
letters were received. For the reasons discussed below, the Commission
is granting approval of the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 51675, (May 9, 2005), 70
FR 25630.
---------------------------------------------------------------------------
II. Description
DTC is a subsidiary of the Depository Trust and Clearing
Corporation (``DTCC''). Participants of DTC and their affiliates may
from time to time utilize the services of DTCC subsidiaries that are
not registered as clearing agencies with the Commission. Such
subsidiaries include Global Asset Solutions LLC and DTCC Deriv/Serv
LLC. In addition, participants of DTC and their affiliates may utilize
the services of other third parties through DTCC. DTC has determined
that it would be more efficient and less costly if the fees that
participants agree to pay for such services were collected by DTC
rather than through independent billing mechanisms that would otherwise
have to be established by each subsidiary of DTCC that is not a
registered clearing agency and by each third party that is not a
registered clearing agency.
The proposed rule change will make clear that DTC may collect from
its participants fees and charges of other subsidiaries of DTCC and of
other third party service providers. DTC will enter into appropriate
agreements with such subsidiaries and other third party service
providers regarding DTC's collection of fees. Furthermore, the rule
change makes clear that as a part of its collecting fees and charges
for services provided to its participants, DTC may similarly collect
fees and charges for services provided to affiliates of its
participants.
III. Discussion
Section 17A(a)(1)(B) of the Act provides that inefficient
procedures for clearance and settlement impose unnecessary costs on
investors and persons facilitating transactions by and acting on behalf
of investors.\3\ Although the services provided by unregulated DTCC
subsidiaries and by other third parties are not core clearance and
settlement services, they are related to the clearance and settlement
operations of DTC and of its participants. By streamlining the fee
collection process for these services so that DTC's participants will
pay these fees to DTC as a part of their normal monthly DTC bills, the
proposed rule change should help to improve efficiency in the
operations of DTC participants and thereby should remove unnecessary
cost for DTC participants and for the persons (i.e., the DTCC
subsidiaries and the other entities providing services to DTC
participants) facilitating transactions by and acting on behalf of
investors. Accordingly, the Commission finds that
[[Page 36679]]
the proposed rule change is consistent with the requirements of Section
17A of the Act.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78q-1(a)(A)(B).
---------------------------------------------------------------------------
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,
that the proposed rule change (File No. SR-DTC-2005-03) be and hereby
is approved.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\4\
---------------------------------------------------------------------------
\4\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-3283 Filed 6-23-05; 8:45 am]
BILLING CODE 8010-01-P
