Self-Regulatory Organizations; National Association of Securities Dealers, Inc.; Order Approving Proposed Rule Change Regarding a New Order Type for the Pre-Market Trading Session, 44413-44414 [E5-4109]
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Federal Register / Vol. 70, No. 147 / Tuesday, August 2, 2005 / Notices
DTCC and third party that is not a
registered clearing agency.
FICC’s rules currently allow for fee
collection arrangements with respect to
collection of fees from members. The
proposed rule change further clarifies
this practice and facilitates collection of
fees with respect to affiliates of
members.3 FICC will enter into
appropriate agreements with such
subsidiaries and others regarding the
collection of fees.
and lending and extending credit to
other nonutility money pool
participants.
For the Commission by the Division of
Investment Management, pursuant to
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4110 Filed 8–1–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
III. Discussion
[Release No. 34–52124; File No. SR–FICC–
2005–09]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Order
Granting Approval of a Proposed Rule
Change Relating to the Collecting of
Fees for Services Provided by Other
Entities
July 26, 2005.
I. Introduction
On May 3, 2005, Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–FICC–2005–09 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 June 13, 2005.2 No
comment letters were received. For the
reasons discussed below, the
Commission is granting approval of the
proposed rule change.
II. Description
The proposed rule change amends
FICC’s rules to allow FICC to collect fees
for services provided by unregulated
subsidiaries of The Depository Trust
and Clearing Corporation (‘‘DTCC’’ and
by other entities. FICC is a subsidiary of
DTCC. Members of FICC 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,
members of FICC and their affiliates
may utilize the services of other third
parties. FICC has determined that it
would be more efficient and less costly
if the fees that members agree to pay for
such services were collected by FICC
rather than through independent billing
mechanisms that would otherwise have
to be established by each subsidiary of
1 15
U.S.C. 78s(b)(1).
Exchange Act Release No. 51789,
(June 6, 2005), 70 FR 34169.
2 Securities
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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.4 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 FICC and of its members. By
streamlining the fee collection process
for these services so that FICC’s
members will pay these fees to FICC as
a part of their normal monthly FICC
bills, the proposed rule change should
help to improve efficiency in the
operations of FICC members and
thereby should remove unnecessary cost
for FICC members and for the persons
(i.e., the DTCC subsidiaries and the
other entities providing services to FICC
members) facilitating transactions by
and acting on behalf of investors.
Accordingly, the Commission finds that
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–
FICC–2005–09) be and hereby is
approved.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.5
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4112 Filed 8–1–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34-52133; File No. SR–NASD–
2005–068]
Self-Regulatory Organizations;
National Association of Securities
Dealers, Inc.; Order Approving
Proposed Rule Change Regarding a
New Order Type for the Pre-Market
Trading Session
July 27, 2005.
On May 25, 2005, the National
Association of Securities Dealers, Inc.,
through its subsidiary, The Nasdaq
Stock Market, Inc. (‘‘Nasdaq’’), 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 establish a new
order type for Nasdaq-listed securities
called the Total Good-till-Canceled
order, which would be eligible for
execution during the pre-market trading
session and would be processed
precisely as the Good-till-Canceled
order. The proposed rule change was
published for comment in the Federal
Register on June 23, 2005.3 The
Commission received no comments on
the proposal. This order approves the
proposed rule change.
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
association,4 the requirements of
Section 15A of the Act,5 in general, and
Section 15A(b)(6) of the Act,6 in
particular, which requires, among other
things, that the rules of a national
securities association be designed to
facilitate transactions in securities and
to remove impediments to and perfect
the mechanism of a free and open
5 17
currently has such fee collection
arrangements with The Bond Market Association
(‘‘TMBA’’) pursuant to specific rules provisions.
FICC continues to collect fees on behalf of TBMA;
however, pursuant to this filing, the existing rules
provisions which govern the TBMA arrangement
will be replaced with broader language intended to
cover all such fee collection arrangements entered
into by FICC.
4 15 U.S.C. 78q–1(a)(A)(B).
PO 00000
3 FICC
Frm 00091
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44413
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 51859
(June 16, 2005), 70 FR 36428.
4 In approving the proposed rule change, the
Commission has considered its impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
5 15 U.S.C. 78o–3.
6 15 U.S.C. 78o–3(b)(6).
1 15
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Federal Register / Vol. 70, No. 147 / Tuesday, August 2, 2005 / Notices
market. In proposing to establish the
new order type, Nasdaq seeks to provide
market participants with more choices,
thereby permitting them to represent
their trading interest more completely
than is currently possible on Nasdaq.
The depth and liquidity of the market
on Nasdaq could increase as a result of
the enhanced interest and competition,
which in turn could promote greater
competition among market centers.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (SR–NASD–2005–
068) be, and it hereby is, approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–4109 Filed 8–1–05; 8:45 am]
In its filing with the Commission,
OCC 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. OCC 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
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52125; File No. SR–OCC–
2005–09]
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing and Immediate Effectiveness
of a Proposed Rule Change Relating to
OCC’s Data Distribution Service
July 26, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
June 24, 2005, The Options Clearing
Corporation (‘‘OCC’’) 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 primarily by OCC. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to adopt a new DDS
Supplement to support the conversion
of OCC’s data distribution service
(‘‘DDS’’) 2 to the technology used by
OCC’s new clearing system, ENCORE.
7 15
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 OCC offers certain ancillary services to clearing
members that are not set forth in OCC’s By-laws and
Rules. Examples of such services include different
channels by which clearing members may elect to
receive data processed by OCC or to communicate
instructions to OCC.
An OCC clearing member may
subscribe to DDS in order to receive in
a machine readable format a copy of
data processed by OCC that is
proprietary to that clearing member
(e.g., position and post-trade entries)
and that is ‘‘non-proprietary’’ (i.e., data
not specific to the clearing member)
produced by OCC, including series,
prices, and other information. A
subscribing clearing member may
instruct OCC to provide data to its
managing clearing member or to its
service bureau. Parties that are not
clearing members may also subscribe to
DDS in order to receive certain nonproprietary data. Data provided as a part
of ENCORE DDS is organized into
different ‘‘message types’’ that a
subscriber may elect to receive.
ENCORE DDS has been developed to
provide a secure, flexible framework for
distributing messages to subscribers
pursuant to their elections.4 As is the
case today, ENCORE DDS subscribers
will be permitted to choose whether to
access messages from OCC servers or to
directly receive message transmissions
from OCC. Subscribers may elect to
receive messages on a real time basis (a
new DDS offering) and/or on a batch
basis (a current DDS offering) although
not all message types will be made
available under both methods.5 For
subscribers electing to receive DDS on a
real time basis, an ‘‘end of day’’ message
will alert them not to expect any further
information from OCC for that day.
ENCORE DDS will be available to
subscribers through leased lines, the
internet, or both. OCC will support the
8 17
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3 The Commission has modified parts of these
statements.
4 Fees charged for DDS to clearing members and
non-clearing members (as set forth in OCC’s
Schedule of Fees) will not be changed at this time.
5 For example, price messages currently are
expected to be only offered on a batch basis.
PO 00000
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Sfmt 4703
current DDS format and the ENCORE
DDS format during a transition period.
The DDS Supplement is structured to
fit within OCC’s existing framework for
the Agreement for OCC Services and
will replace the current form
supplement between clearing members
and OCC.6 The DDS Supplement’s
provisions are generally selfexplanatory, and they are intended to
describe the respective responsibilities
of OCC and the subscribing clearing
member. Section 1 describes DDS and,
if applicable, permits a clearing member
to direct OCC to deliver messages to the
clearing member’s managing clearing
member or service bureau, as
applicable. Section 2 sets forth criteria
associated with subscribing to DDS.
Sections 3 through 5 set forth further
responsibilities of the parties including
limitations on warranties, liability,7 and
indemnification. Section 6 contains
general terms regarding survival of
certain provisions. Annex I provides an
overview of message types offered as a
part of ENCORE DDS. Annex II is a form
which permits a clearing member to
provide contact information regarding
its managing clearing member and a
certification of the managing clearing
member with respect to DDS. Annex III
is a comparable form for service
bureaus.
OCC believes that the proposed
change is consistent with Section 17A of
the Act because ENCORE DDS provides
a more efficient and effective means to
furnish machine readable clearingrelated data to clearing members. The
proposed rule change is not inconsistent
with the existing rules of OCC,
including any other rules proposed to be
amended.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
OCC does not believe that the
proposed rule change would impose any
burden on competition.
6 The DDS Supplement to be entered into
between OCC and clearing members subscribing to
DDS is attached to the filing of proposed rule
change as Exhibit 5.
7 The limitation of liability provision contained in
the DDS Supplement is based on the comparable
provisions of the Supplement for Internet Access,
which was approved by the Commission in
Securities Exchange Act Release No. 46152 (July 1,
2002) 67 FR 45166 (July 8, 2002) [File No. SR–OCC–
2001–09]. OCC has filed a proposed rule change
with the Commission to establish a standard of care
by which any potential liability of OCC to its
clearing members would be judged [File No. SR–
OCC–2003–13]. If approved, that proposed rule
change would amend supplements to the
Agreement for OCC Services to the extent a
standard of care is established therein to reference
the standard as it would be set forth in OCC’s Bylaws.
E:\FR\FM\02AUN1.SGM
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[Federal Register Volume 70, Number 147 (Tuesday, August 2, 2005)]
[Notices]
[Pages 44413-44414]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4109]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52133; File No. SR-NASD-2005-068]
Self-Regulatory Organizations; National Association of Securities
Dealers, Inc.; Order Approving Proposed Rule Change Regarding a New
Order Type for the Pre-Market Trading Session
July 27, 2005.
On May 25, 2005, the National Association of Securities Dealers,
Inc., through its subsidiary, The Nasdaq Stock Market, Inc.
(``Nasdaq''), 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 establish a new order type for Nasdaq-listed
securities called the Total Good-till-Canceled order, which would be
eligible for execution during the pre-market trading session and would
be processed precisely as the Good-till-Canceled order. The proposed
rule change was published for comment in the Federal Register on June
23, 2005.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 51859 (June 16,
2005), 70 FR 36428.
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to a national securities association,\4\ the
requirements of Section 15A of the Act,\5\ in general, and Section
15A(b)(6) of the Act,\6\ in particular, which requires, among other
things, that the rules of a national securities association be designed
to facilitate transactions in securities and to remove impediments to
and perfect the mechanism of a free and open
[[Page 44414]]
market. In proposing to establish the new order type, Nasdaq seeks to
provide market participants with more choices, thereby permitting them
to represent their trading interest more completely than is currently
possible on Nasdaq. The depth and liquidity of the market on Nasdaq
could increase as a result of the enhanced interest and competition,
which in turn could promote greater competition among market centers.
---------------------------------------------------------------------------
\4\ In approving the proposed rule change, the Commission has
considered its impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
\5\ 15 U.S.C. 78o-3.
\6\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (SR-NASD-2005-068) be, and it
hereby is, approved.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4109 Filed 8-1-05; 8:45 am]
BILLING CODE 8010-01-P
