Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Modify and Consolidate Clearing Fund Rules, 59112-59114 [E5-5564]
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59112
Federal Register / Vol. 70, No. 195 / Tuesday, October 11, 2005 / Notices
examination more closely to the
supervisory duties of a Series 9/10
limited principal, NASD is proposing to
modify the content of the examination
to track the functional workflow of a
Series 9/10 limited principal. Also,
NASD is proposing to include questions
related to parallel rules of NASD, the
options exchanges, the MSRB, and the
NYSE in the same section of the exam.
As a result of the revisions, NASD is
proposing to modify the main section
headings and the number of questions
on each section of the Series 9/10 study
outline as follows: Section 1—Hiring,
Qualifications, and Continuing
Education, 9 questions; Section 2—
Supervision of Accounts and Sales
Activities, 94 questions; Section 3—
Conduct of Associated Persons, 14
questions; Section 4—Recordkeeping
Requirements, 8 questions; Section 5—
Municipal Securities Regulation, 20
questions; Section 6—Options
Regulation, 55 questions. Sections 1
through 5 constitute the Series 10
portion of the examination. Section 6
constitutes the Series 9 portion of the
examination. Series 10 covers general
securities and municipal securities, and
Series 9 covers options. The revised
examination continues to cover the
areas of knowledge required for the
supervision of sales activities.
NASD is proposing these changes to
the entire content of the Series 9/10
examination, including the selection
specifications and question bank. The
number of questions on the Series 9/10
examination will remain at 200, and
candidates will continue to have four
hours to complete the Series 10 portion
and one and one-half hours to complete
the Series 9 portion. Also, each question
will continue to count one point, and
each candidate must correctly answer
70 percent of the questions on each
series, 9 and 10, to receive a passing
grade.
NASD understands that the other
SROs also will file with the Commission
similar proposed rule changes reflecting
the revisions to the Series 9/10
examination program.
2. Statutory Basis
NASD believes that the proposed
revisions to the Series 9/10 examination
program are consistent with the
provisions of Sections 15A(b)(6) 11 and
15A(g)(3) of the Act,12 which authorize
NASD to prescribe standards of training,
experience, and competence for persons
associated with NASD members.
11 15
12 15
U.S.C. 78o–3(b)(6).
U.S.C. 78o–3(g)(3).
VerDate Aug<31>2005
16:40 Oct 07, 2005
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NASD does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change has become
effective pursuant to Section
19(b)(3)(A)(i) of the Act 13 and Rule 19b4(f)(1) thereunder,14 in that the
proposed rule change constitutes a
stated policy, practice, or interpretation
with respect to the meaning,
administration, or enforcement of an
existing rule of the self-regulatory
organization. NASD proposes to
implement the revised Series 9/10
examination program no later than
November 30, 2005. NASD will
announce the implementation date in a
Notice to Members to be published no
later than 60 days after Notice of this
filing.
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 furtherance of the
purposes of the Act.
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 rulecomments@sec.gov. Please include File
Number SR–NASD–2005–111 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
13 15
14 17
Jkt 208001
PO 00000
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
Frm 00085
Fmt 4703
Sfmt 4703
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–NASD–2005–111. 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
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of the NASD. 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–NASD–2005–111 and
should be submitted on or before
November 1, 2005.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5565 Filed 10–7–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–52552; File No. SR–NSCC–
2005–13]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing of
Proposed Rule Change To Modify and
Consolidate Clearing Fund Rules
October 3, 2005.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
September 20, 2005, the National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
15 17
1 15
E:\FR\FM\11OCN1.SGM
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
11OCN1
Federal Register / Vol. 70, No. 195 / Tuesday, October 11, 2005 / Notices
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which items
have been prepared primarily by NSCC.
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
NSCC is seeking to modify Procedure
XV (Clearing Fund Formula and Other
Matters) and make related technical
changes.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NSCC 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. NSCC has prepared
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
1. Clearing Fund Formula
Enhancements
NSCC’s clearing fund formula consists
of a number of components designed to
calculate the exposure to NSCC of
participants’ unsettled portfolios. For
CNS and Balance Order transactions,
the components include a mark-tomarket calculation and a volatility
calculation.3
The current mark-to-market
calculation includes trades that have not
yet reached Settlement Date, thus
excluding from the calculation trades
that have reached T+3 and CNS fail
positions (i.e., net positions that did not
settle on Settlement Date). NSCC is
proposing to enhance the mark-tomarket calculation by including trades
that have reached Settlement Date and
net CNS fail positions to more
accurately cover the mark-to-market
exposure of participants’ unsettled
portfolios in the event of an intraday
insolvency of a participant. When
making this calculation, NSCC may but
2 The Commission has modified the text of the
summaries prepared by NSCC.
3 The other components for CNS and Balance
Order activity are a CNS fail charge, a charge for
market maker domination, and special charges.
VerDate Aug<31>2005
16:40 Oct 07, 2005
Jkt 208001
is not required to take into account
securities that a participant has
delivered to CNS in the night cycle.
The volatility component of the
clearing fund formula rule provides that
NSCC may exclude from volatility
calculations net unsettled positions in
classes of securities whose volatility is
either less amenable to statistical
analysis such as OTC Pink Sheet issues
trading below $5.00, or amenable to
such analysis only in a complex manner
such as municipal or corporate bonds.
The amount of clearing fund required to
satisfy the volatility component for
these positions is determined as a
percentage haircut (currently 2% for
municipal and corporate bonds).
NSCC is proposing to enhance its
volatility formula and replace the 2%
haircut for corporate and municipal
bonds with a fixed income volatility
calculation. NSCC would continue to
use a haircut for fixed income securities
in circumstances it deems appropriate
such as where sufficient market or
security information is not available.
2. Technical Clarifications
When NSCC revised its clearing fund
formula in 2001 to move to a risk-based
calculation,4 it applied the revised
formula to participants on a rolling
basis. To accommodate this transition,
NSCC’s rules retained two versions of
Addendum B (Standards of Financial
Responsibility and Operational
Capability) and Procedure XV: Version
1 (non-risk-based) and Version 2 (riskbased). Version 2 is currently located in
Appendix 1.
With limited exception, all
participants are now subject to the
clearing fund provisions of Version 2 of
Procedure XV and Version 2 of
Addendum B. Accordingly, in order to
simplify the rules and enable
participants to locate provisions
applicable to them more readily, NSCC
proposes to restructure its Addendums,
Procedures, and Rules.
As Version 1 of Procedure XV now
has limited applicability, NSCC is
proposing to re-designate this as
proposed Version 2 of Procedure XV
and move it to Appendix 1. NSCC
would retain only those provisions
thereof (and of Version 1 of Addendum
B 5) that remain applicable. Because the
4 Securities Exchange Act Release No. 44431
(June 15, 2001), 66 FR 33280.
5 Both versions of Addendum B are substantially
identical, with the exception of certain provisions
of current Version 1 relating to the timing for
calculating and collecting clearing fund. The
substance of those provisions of current Version 1
of Addendum B are added as a note to the current
Version 1 of Procedure XV that would be moved to
Appendix 1 and would be renamed Version 2. The
rest of Version 1 of Addendum B would be deleted.
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
59113
current Version I of Procedure XV
always contained a mark-to-market
component, it is also being revised to
include in the mark-to-market
calculation trades that have reached T+3
and CNS fail positions. The current
provisions of Appendix 1 (Version 2 of
Procedure XV and Version 2 of
Addendum B) would be moved into the
body of the rules in place of current
Version 1 of Procedure XV and current
Version 1 of Addendum B where they
would appear in numerical order.
As part of these clarifications, Rule 4
(Clearing Fund) is also being corrected
to make clear that participants may
request a return of any excess clearing
fund on any day that NSCC has
determined that the participant’s Actual
Deposit exceeds its Required Deposit
(qualifying bonds would still be valued
at their collateral value). Finally, certain
technical corrections are proposed to
Rule 4 and the clearing fund formula to
provide consistent terminology and
delete obsolete references.
NSCC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder applicable to NSCC because
it will permit NSCC to assure the
safeguarding of funds and securities
which are in its custody or control or for
which it is responsible by allowing
NSCC to more precisely identify the
risks posed by a participant’s unsettled
portfolio and, as a result, more quickly
adjust and collect additional clearing
fund requirements than the current
formula. As a result NSCC should be
better protected from the possibility of
a participant’s default because the
clearing fund deposits it collects should
more accurately reflect NSCC’s
exposure.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
NSCC does not believe that the
proposed rule change will 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
NSCC has not solicited or received
any written comments on this proposal.
NSCC will notify the Commission of any
written comments it receives.
All participants remain subject to the provisions of
the current Version 2 of Addendum B, which NSCC
is proposing to move to the body of its rules from
Appendix 1 and rename Version 1.
6 15 U.S.C. 78q–1.
E:\FR\FM\11OCN1.SGM
11OCN1
59114
Federal Register / Vol. 70, No. 195 / Tuesday, October 11, 2005 / Notices
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 such 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:
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–NSCC–2005–13 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Jonathan G. Katz, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–9303.
All submissions should refer to File
Number SR–NSCC–2005–13. 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, 100 F Street, NE., Washington,
DC 20549. Copies of such filing also will
be available for inspection and copying
VerDate Aug<31>2005
16:40 Oct 07, 2005
Jkt 208001
at the principal office of NSCC and on
NSCC’s Web site at https://
www.nscc.com/legal. 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–NSCC–2005–13 and should
be submitted on or before November 1,
2005.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.7
Jonathan G. Katz,
Secretary.
[FR Doc. E5–5564 Filed 10–7–05; 8:45 am]
BILLING CODE 8010–01–P
DEPARTMENT OF STATE
[Public Notice 5203]
In the Matter of the Designation of the
Moroccan Islamic Combatant Group,
aka Groupe Islamique Combattant
Marocain (GICM), as a Foreign
Terrorist Organization Pursuant to
Section 219 of the Immigration and
Nationality Act
Based upon a review of the
Administrative Record assembled in
this matter, and in consultation with the
Attorney General and the Secretary of
the Treasury, the Secretary of State has
concluded that there is a sufficient
factual basis to find that the relevant
circumstances described in section 219
of the Immigration and Nationality Act,
as amended (8 U.S.C. 1189, hereinafter
‘‘INA’’), exist with respect to the
Moroccan Islamic Combatant Group, aka
Groupe Islamique Combattant Marocain
(GICM).
Therefore, effective upon date of
publication in the Federal Register, the
Secretary of State hereby designates that
organization as a foreign terrorist
organization pursuant to section 219(a)
of the INA.
Dated: October 3, 2005.
Henry A. Crumpton,
Coordinator for Counterterrorism,
Department of State.
[FR Doc. 05–20341 Filed 10–7–05; 5:00 pm]
BILLING CODE 4710–10–P
7 CFR
PO 00000
200.30–3(a)(12).
Frm 00087
Fmt 4703
Sfmt 4703
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
Applications of Maxjet Airways, Inc. for
Certificate Authority
Department of Transportation.
Notice of Order to Show Cause
(Order 2005–9–26) [Docket OST–2004–
17171].
AGENCY:
ACTION:
SUMMARY: The Department of
Transportation is directing all interested
persons to show cause why it should
not issue an order finding MAXjet
Airways, Inc., fit, willing, and able, and
awarding it a certificate of public
convenience and necessity to engage in
interstate scheduled air transportation
of persons, property and mail.
DATES: Persons wishing to file
objections should do so no later than
October 14, 2005.
ADDRESSES: Objections and answers to
objections should be filed in Dockets
OST–2004–17171 and addressed to U.S.
Department of Transportation, Docket
Operations, (M–30, Room PL–401), 400
Seventh Street, SW., Washington, DC
20590, and should be served upon the
parties listed in Attachment A to the
order.
FOR FURTHER INFORMATION CONTACT:
Vanessa R. Balgobin, Air Carrier Fitness
Division (X–56, Room 6401), U.S.
Department of Transportation, 400
Seventh Street, SW., Washington, DC
20590, (202) 366–9721.
Dated: September 30, 2005.
William. Bertram,
Chief, Air Carrier Fitness Division.
[FR Doc. 05–20332 Filed 10–7–05; 8:45 am]
BILLING CODE 4910–62–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
Privacy Act of 1974: System of
Records
Office of the Secretary,
Department of Transportation (DOT)
ACTION: Notice to modify a system of
records.
AGENCY:
SUMMARY: DOT proposes to modify an
existing system of records under the
Privacy Act of 1974.
EFFECTIVE DATE: This notice will be
effective, without further notice, on
November 21, 2005, unless modified by
a subsequent notice to incorporate
comments received by the public.
Comments must be received by
November 10, 2005 to be assured
consideration.
E:\FR\FM\11OCN1.SGM
11OCN1
Agencies
[Federal Register Volume 70, Number 195 (Tuesday, October 11, 2005)]
[Notices]
[Pages 59112-59114]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-5564]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-52552; File No. SR-NSCC-2005-13]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change To Modify and
Consolidate Clearing Fund Rules
October 3, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on September 20, 2005, the
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and
[[Page 59113]]
Exchange Commission (``Commission'') the proposed rule change described
in Items I, II, and III below, which items have been prepared primarily
by NSCC. 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
NSCC is seeking to modify Procedure XV (Clearing Fund Formula and
Other Matters) and make related technical changes.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NSCC 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. NSCC 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 NSCC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Clearing Fund Formula Enhancements
NSCC's clearing fund formula consists of a number of components
designed to calculate the exposure to NSCC of participants' unsettled
portfolios. For CNS and Balance Order transactions, the components
include a mark-to-market calculation and a volatility calculation.\3\
---------------------------------------------------------------------------
\3\ The other components for CNS and Balance Order activity are
a CNS fail charge, a charge for market maker domination, and special
charges.
---------------------------------------------------------------------------
The current mark-to-market calculation includes trades that have
not yet reached Settlement Date, thus excluding from the calculation
trades that have reached T+3 and CNS fail positions (i.e., net
positions that did not settle on Settlement Date). NSCC is proposing to
enhance the mark-to-market calculation by including trades that have
reached Settlement Date and net CNS fail positions to more accurately
cover the mark-to-market exposure of participants' unsettled portfolios
in the event of an intraday insolvency of a participant. When making
this calculation, NSCC may but is not required to take into account
securities that a participant has delivered to CNS in the night cycle.
The volatility component of the clearing fund formula rule provides
that NSCC may exclude from volatility calculations net unsettled
positions in classes of securities whose volatility is either less
amenable to statistical analysis such as OTC Pink Sheet issues trading
below $5.00, or amenable to such analysis only in a complex manner such
as municipal or corporate bonds. The amount of clearing fund required
to satisfy the volatility component for these positions is determined
as a percentage haircut (currently 2% for municipal and corporate
bonds).
NSCC is proposing to enhance its volatility formula and replace the
2% haircut for corporate and municipal bonds with a fixed income
volatility calculation. NSCC would continue to use a haircut for fixed
income securities in circumstances it deems appropriate such as where
sufficient market or security information is not available.
2. Technical Clarifications
When NSCC revised its clearing fund formula in 2001 to move to a
risk-based calculation,\4\ it applied the revised formula to
participants on a rolling basis. To accommodate this transition, NSCC's
rules retained two versions of Addendum B (Standards of Financial
Responsibility and Operational Capability) and Procedure XV: Version 1
(non-risk-based) and Version 2 (risk-based). Version 2 is currently
located in Appendix 1.
---------------------------------------------------------------------------
\4\ Securities Exchange Act Release No. 44431 (June 15, 2001),
66 FR 33280.
---------------------------------------------------------------------------
With limited exception, all participants are now subject to the
clearing fund provisions of Version 2 of Procedure XV and Version 2 of
Addendum B. Accordingly, in order to simplify the rules and enable
participants to locate provisions applicable to them more readily, NSCC
proposes to restructure its Addendums, Procedures, and Rules.
As Version 1 of Procedure XV now has limited applicability, NSCC is
proposing to re-designate this as proposed Version 2 of Procedure XV
and move it to Appendix 1. NSCC would retain only those provisions
thereof (and of Version 1 of Addendum B \5\) that remain applicable.
Because the current Version I of Procedure XV always contained a mark-
to-market component, it is also being revised to include in the mark-
to-market calculation trades that have reached T+3 and CNS fail
positions. The current provisions of Appendix 1 (Version 2 of Procedure
XV and Version 2 of Addendum B) would be moved into the body of the
rules in place of current Version 1 of Procedure XV and current Version
1 of Addendum B where they would appear in numerical order.
---------------------------------------------------------------------------
\5\ Both versions of Addendum B are substantially identical,
with the exception of certain provisions of current Version 1
relating to the timing for calculating and collecting clearing fund.
The substance of those provisions of current Version 1 of Addendum B
are added as a note to the current Version 1 of Procedure XV that
would be moved to Appendix 1 and would be renamed Version 2. The
rest of Version 1 of Addendum B would be deleted. All participants
remain subject to the provisions of the current Version 2 of
Addendum B, which NSCC is proposing to move to the body of its rules
from Appendix 1 and rename Version 1.
---------------------------------------------------------------------------
As part of these clarifications, Rule 4 (Clearing Fund) is also
being corrected to make clear that participants may request a return of
any excess clearing fund on any day that NSCC has determined that the
participant's Actual Deposit exceeds its Required Deposit (qualifying
bonds would still be valued at their collateral value). Finally,
certain technical corrections are proposed to Rule 4 and the clearing
fund formula to provide consistent terminology and delete obsolete
references.
NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \6\ and the rules and
regulations thereunder applicable to NSCC because it will permit NSCC
to assure the safeguarding of funds and securities which are in its
custody or control or for which it is responsible by allowing NSCC to
more precisely identify the risks posed by a participant's unsettled
portfolio and, as a result, more quickly adjust and collect additional
clearing fund requirements than the current formula. As a result NSCC
should be better protected from the possibility of a participant's
default because the clearing fund deposits it collects should more
accurately reflect NSCC's exposure.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will 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
NSCC has not solicited or received any written comments on this
proposal. NSCC will notify the Commission of any written comments it
receives.
[[Page 59114]]
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 such 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:
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-NSCC-2005-13 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-9303.
All submissions should refer to File Number SR-NSCC-2005-13. 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, 100 F Street,
NE., Washington, DC 20549. Copies of such filing also will be available
for inspection and copying at the principal office of NSCC and on
NSCC's Web site at https://www.nscc.com/legal. 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-NSCC-2005-13 and
should be submitted on or before November 1, 2005.
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\7\ CFR 200.30-3(a)(12).
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
Jonathan G. Katz,
Secretary.
[FR Doc. E5-5564 Filed 10-7-05; 8:45 am]
BILLING CODE 8010-01-P