Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Enhancements of the SMART/Track Service, 1457-1459 [E6-45]

Download as PDF Federal Register / Vol. 71, No. 5 / Monday, January 9, 2006 / Notices at (202) 606–0902; or by e-mail at cfc@opm.gov. To address the loss of CFC contributions experienced by local organizations due to the deployment of DoD personnel to certain warfighting area of responsibility, DoD and OPM are implementing a one-year pilot program designed to allow those deployed DoD personnel to adjust their CFC contributions so the contributions can be designated to the donor’s home base MWR activities and/or the local charities located within the corresponding stateside campaign associated with their home base, in addition to the National and International charities. In the absence of this pilot program, CFC regulations limit CFC designations from deployed DoD personnel to national/international charities, or to MWR activities overseas. This pilot program will expire at the end of the 2006 CFC or approximately December 15, 2006. Under the pilot program, the CFC–O Campaign will offer affected deployed DoD personnel a modified CFC–O Campaign pledge card that will contain two added donation options, as follows: (1) Each deployed employee may designate a portion of their donation to their home base’s MWR activities; and/ or, (2) Each deployed employee may elect to apply a portion of their total contribution as a designated contribution for distribution among all local charities located within the geographic area of their home base campaign. OPM will evaluate the costs and logistics tied to the implementation of the new options in anticipation of making it a permanent change in the regulations. These designated contributions will be distributed by CFC–O Campaign to the local campaign associated with the donor’s home base as if the recipient campaign was a participating CFC–O Campaign charity, with the final payments in the distribution cycle sent early enough that the recipient campaign can include them in its final payment to charities. The home base campaign, in turn, will be directed to distribute these designated funds, at no cost, to all local charities in the same manner as local undesignated contributions (i.e. in the same proportion that each charity received designations in the local campaign). Home base campaigns will only need to adjust their distribution schedules and include these CFC–O Campaign contributions in their regular monthly/ quarterly distributions to the local cprice-sewell on PROD1PC66 with NOTICES SUPPLEMENTARY INFORMATION: VerDate Aug<31>2005 15:31 Jan 06, 2006 Jkt 208001 charities and track as cash received. Under this pilot program, donated funds will be reduced by the proportionate share of the CFC–O Campaign expenses only prior to distribution to the home base campaigns. Consequently, the home base campaigns will be directed not to charge additional processing costs to distribute these donations, since there is no additional cost associated with either the collection or distribution of the funds. DoD personnel deployed to the affected warfighting areas of responsibility, regardless of the length of time, are officially assigned to the command to which they have been deployed. Therefore, personnel deployed to the affected warfighting areas of responsibility during the campaign season can only be solicited by the campaign responsible for the geographic area of the command. The exception to this rule is when a Navy ship has been deployed but is still considered ‘‘homeported.’’ In this instance, the local campaign should continue to solicit the donor stationed on the homeported ship. CFC regulations at 5 CFR 950.701 state that the CFC–O Campaign is the only authorized campaign to solicit overseas areas during the CFC solicitation period in the fall. Under no circumstances may the stateside campaigns solicit personnel deployed overseas. Sanctions may result for violations of this rule. Authority: E.O. 12353 (March 23, 1982), 47 FR 12785 (March 25, 1982). 3 CFR 1982 Comp., p. 139. E.O. 12404 (February 10, 1983), 48 FR 6685 (February 15, 1983), Pub. L 100–202, and Pub. L. 102–393 (5 U.S.C. 1101 Note). U.S. Office of Personnel Management. Dan G. Blair, Deputy Director. [FR Doc. E6–40 Filed 1–6–06; 8:45 am] BILLING CODE 6325–46–P RAILROAD RETIREMENT BOARD Agency Forms Submitted for OMB Review In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the Railroad Retirement Board (RRB) has submitted the following proposal(s) for the collection of information to the Office of Management and Budget for review and approval. SUMMARY: Summary of Proposal(s) (1) Collection title: Applicant Background Survey. (2) Form(s) submitted: EEO–44. PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 1457 (3) OMB Number: 3220–NEW. (4) Expiration date of current OMB clearance: None; new collection. (5) Type of request: New collection. (6) Respondents: Individuals or households. (7) Estimated annual number of respondents: 800. (8) Total annual responses: 800. (9) Total annual reporting hours: 67. (10) Collection description: To meet reporting requirements of Equal Employment Opportunity Commission (EEO) Management Directive 715, the RRB will collect information needed to properly assess the impact of its recruitment processes on the hiring of minorities, women, and people with disabilities. ADDITIONAL INFORMATION OR COMMENTS: Copies of the forms and supporting documents can be obtained by contacting Charles Mierzwa, the agency clearance officer, at (312) 751–3363 or Charles.Mierzwa@RRB.GOV. Comments regarding the information collection should be addressed to Ronald J. Hodapp, Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois 60611–2092 or Ronald.Hodapp@RRB.GOV and to the OMB Desk Officer for the RRB, at the Office of Management and Budget, Room 10230, New Executive Office Building, Washington, DC 20503. Charles Mierzwa, Clearance Officer. [FR Doc. E6–62 Filed 1–6–06; 8:45 am] BILLING CODE 7905–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53032; File No. SR–DTC– 2005–19] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Enhancements of the SMART/Track Service December 28, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on November 10, 2005, The Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) and on December 22, 2005, amended the proposed rule change as described in Items I, II, and III below, which Items have been prepared primarily by DTC. DTC filed 1 15 E:\FR\FM\09JAN1.SGM U.S.C. 78s(b)(1). 09JAN1 1458 Federal Register / Vol. 71, No. 5 / Monday, January 9, 2006 / Notices the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 2 and Rule 19b–4(f)(4) thereunder 3 whereby the proposal was effective upon filing with the Commission. 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 proposed rule change will enhance DTC’s current SMART/Track service by adding an internet-based service called ‘‘SMART/Track for BuyIns.’’ The service will ultimately replace DTC’s existing buy-in service of its Participant Exchange (‘‘PEX’’) system and will provide additional features to enable users to track buy-in notices throughout their lifecycle. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, DTC 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. DTC has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.4 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change This rule filing will establish an internet-based buy-in service called ‘‘SMART/Track for Buy-Ins.’’ 5 The service will ultimately replace DTC’s current PEX platform and will be more user-friendly. It will provide real-time open buy-in information and will enable automated communication, warehousing, and tracking of various types of buy-in related notices that are required by the rules of other self2 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(4). 4 The Commission has modified the text of the summaries prepared by DTC. 5 See DTC Important Notice B#8796 (Nov. 23, 2005) available online at http://www.dtc.org/ impNtc/ope/ope_8796.pdf. SMART/Track was established in 2004 and featured a stock loan recall notification service. Securities Exchange Act Release No. 50029 (July 15, 2004), 69 FR 43870 (July 22, 2004). DTC later added a corporate action liability notification service [Securities Exchange Act Release No. 50887 (Dec. 20, 2004), 69 FR 77802 (Dec. 28, 2004)] and an agency lending disclosure service to SMART/Track. [Securities Exchange Act Release No. 52104 (July 21, 2005), 70 FR 43730 (July 28, 2004)]. regulatory organizations (‘‘SROs’’).6 Through the service, users will be able to create and transmit notices, view notices they have received or sent, make changes to notices (if not yet transmitted) according to stated parameters, reject notices as applicable, and search archives for active and aged notices. The service will have several features that will be implemented in phases. The first phase of the service will be National Securities Clearing Corporation’s (‘‘NSCC’’) Continuous Net Settlement (‘‘CNS’’) buy-in execution notices. DTC participants will send these notices to CNS through SMART/ Track. After CNS validates these notices (e.g. verifies certain details of the buyin execution such as the quantity of the buy-in) the DTC participant that was bought-in will be notified of its liability through a SMART/Track notice.7 The second phase of the service will permit DTC participants to transmit CNS Notices of Intent to Buy-In and Buy-In Orders for processing. CNS will send notification to the DTC participant being bought-in of its potential liability through SMART/Track. Notices pertaining to buy-ins other than CNS buy-ins (‘‘non-CNS buy-ins’’) 8 and Municipal Securities Rulemaking Board (‘‘MSRB’’) closeouts will be the final function implemented on SMART/ Track. Users will be able to create and transmit to the designated counterparty buy-in intent notices and MSRB closeout notices through SMART/Track. Users receiving such buy-in notice or MSRB closeout notice will be able to accept or reject the notice online. The sender of such buy-in notice or MSRB closeout notice will be able to cancel a notice in any status, extend the delivery date, or change the quantity or amount. Once fully implemented, the buy-in service will feature: • Online cancellation and updating of a buy-in notice. • Search and sort capability on any field in a buy-in notice. • Audit trail with a complete record of actions taken regarding a notice, including time, date, and the person taking the action. cprice-sewell on PROD1PC66 with NOTICES 3 17 VerDate Aug<31>2005 15:31 Jan 06, 2006 Jkt 208001 6 E.g., New York Stock Exchange (‘‘NYSE’’) Rule 282 and American Stock Exchange Rule 783. NYSE Rule 282 was recently amended to, among other things, eliminate the requirement for paper buy-in notices to permit electronic notices, including those from DTC. Securities Exchange Act Release No. 52842 (Nov. 28, 2005), 70 FR 72321 (Dec. 2, 2005) [File No. SR–NYSE–2005–50]. 7 Any notice or report received by participants through SMART/Track will be in addition to (and will not replace) any notices or reports currently being distributed to participants by their SRO with respect to their buy-in activity. 8 Non-CNS buy-ins include NYSE, AMEX, NASD, and NSCC Balance-Order buy-ins. PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 • Links to DTC systems to indicate if the security subject to a buy-in is undergoing a dividend or corporate action or has been chilled for delivery. • Automatic archiving. • Seven-year record retention that is easily available online. SMART/Track for Buy-Ins is subject to DTC’s gross negligence and willful misconduct standard of liability for information services. DTC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act 9 and the rules and regulations thereunder because it will promote the prompt and accurate clearance and settlement of securities transactions by providing important and timely notifications relating to buy-ins between participant counterparties. B. Self-Regulatory Organization’s Statement on Burden on Competition DTC 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 Written comments relating to the proposed rule change have not yet been solicited or received. DTC will notify the Commission of any written comments received by DTC. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(iii) 10 of the Act and Rule 19b–4(f)(4) 11 thereunder because it effects a change in an existing service of DTC that does not adversely affect the safeguarding of securities or funds in DTC’s control or for which DTC is responsible and does not significantly affect DTC’s or its participants’ respective rights or obligations. At any time within 60 days of the filing of such 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 9 15 U.S.C. 78q–1. U.S.C. 78s(b)(3)(A)(iii). 11 17 CFR 240.19b–4(f)(4). 10 15 E:\FR\FM\09JAN1.SGM 09JAN1 1459 Federal Register / Vol. 71, No. 5 / Monday, January 9, 2006 / Notices arguments concerning the foregoing, including whether the proposed rule change, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: SECURITIES AND EXCHANGE COMMISSION Floor Broker, Specialist, or ROT (including RSQTs and SQTs) or Off-Floor Trader Permit Fee [Release No. 34–53046; File No. SR–Phlx– 2005–89] Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–DTC–2005–19 on the subject line. Self-Regulatory Organizations; Philadelphia Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Adopt an Account Fee a. First Permit—$1,200.00 per month. b. Additional permits for members in the same organization—$1,000.00 per month. Excess Permit Holders—$200.00 per month. Other Permit Holders 7—$200.00 per month. Foreign Currency User Fee—$1,200.00 monthly. Application Fee—$350.00. Initiation Fee 8—$1,500.00. Account Fee—$50.00 monthly for each account beyond the number of permits billed to that member organization. cprice-sewell on PROD1PC66 with NOTICES Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303. All submissions should refer to File No. SR–DTC–2005–19. 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 (http://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 DTC’s principal office and on DTC’s Web site at http://www.dtc.org/impNtc/ mor/index.html. 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 submission should refer to File No. SR–DTC–2005– 19 and should be submitted on or before January 30, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Nancy M. Morris, Secretary. [FR Doc. E6–45 Filed 1–6–06; 8:45 am] BILLING CODE 8010–01–P 12 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:31 Jan 06, 2006 Jkt 208001 January 3, 2006. 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 December 23, 2005, the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’ or ‘‘Exchange’’), 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 the Phlx. The Phlx has designated this proposal as one changing a fee imposed by the Phlx under Section 19(b)(3)(A)(ii) of the Act 3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposal effective upon filing with the Commission. 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 Exchange proposes to amend its schedule of fees to adopt a fee on member organizations of fifty dollars ($50.00) per month, or any part of a month, for each account that a member organization maintains with the Exchange beyond the number of permits 5 billed to that member organization (the ‘‘Fee’’). The Exchange states that the Fee would be effective beginning on January 1, 2006. Below is the text of the proposed rule change. Proposed new language is in italics. * * * * * APPENDIX A Permit Fees 6 Order Flow Provider Permit Fee a. Permits used only to submit orders to the equity, foreign currency options, or options trading floor (one floor only)—$200.00 per month. b. Permits used only to submit orders to more than one trading floor $300.00 per month. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 5 See Phlx Rule 908. 2 17 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 * * * * * 6 The Exchange has established the date of notification of termination of a permit as the date that permit fee billing will cease. Additionally, a permit holder will be billed only one monthly permit fee if the holder transfers from one member organization to another previously unrelated member organization as a result of a merger, partial sale or other business combination during a monthly permit fee period in order to avoid double billing in the month the merger or business combination occurred. These policies will be effective as of February 2, 2004. 7 A permit holder or the member organization they solely qualify must apply for ‘‘other’’ status in writing to the Membership Services Department. This status requires that a permit holder or the member organization have no transaction activity for the applicable monthly billing period. Should a permit holder actively transact business during a particular month, the highest applicable monthly permit fee will apply to such permit holder and member organization for that monthly period. The ‘‘other’’ status only applies to permit holders who solely qualify their member organization. These policies will be effective as of February 2, 2004. 8 This fee is imposed on a member upon election, on a non-member FCO participant upon the purchase of an FCO participation, and on persons or entities registering as approved lessors. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange 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. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. E:\FR\FM\09JAN1.SGM 09JAN1

Agencies

[Federal Register Volume 71, Number 5 (Monday, January 9, 2006)]
[Notices]
[Pages 1457-1459]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-45]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53032; File No. SR-DTC-2005-19]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Enhancements of the SMART/Track Service

December 28, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 10, 2005, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') and on December 22, 2005, amended 
the proposed rule change as described in Items I, II, and III below, 
which Items have been prepared primarily by DTC. DTC filed

[[Page 1458]]

the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the 
Act \2\ and Rule 19b-4(f)(4) thereunder \3\ whereby the proposal was 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change will enhance DTC's current SMART/Track 
service by adding an internet-based service called ``SMART/Track for 
Buy-Ins.'' The service will ultimately replace DTC's existing buy-in 
service of its Participant Exchange (``PEX'') system and will provide 
additional features to enable users to track buy-in notices throughout 
their lifecycle.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, DTC 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. DTC has prepared summaries, set forth in sections A, B, 
and C below, of the most significant aspects of such statements.\4\
---------------------------------------------------------------------------

    \4\ The Commission has modified the text of the summaries 
prepared by DTC.
---------------------------------------------------------------------------

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    This rule filing will establish an internet-based buy-in service 
called ``SMART/Track for Buy-Ins.'' \5\ The service will ultimately 
replace DTC's current PEX platform and will be more user-friendly. It 
will provide real-time open buy-in information and will enable 
automated communication, warehousing, and tracking of various types of 
buy-in related notices that are required by the rules of other self-
regulatory organizations (``SROs'').\6\ Through the service, users will 
be able to create and transmit notices, view notices they have received 
or sent, make changes to notices (if not yet transmitted) according to 
stated parameters, reject notices as applicable, and search archives 
for active and aged notices. The service will have several features 
that will be implemented in phases.
---------------------------------------------------------------------------

    \5\ See DTC Important Notice B8796 (Nov. 23, 2005) 
available online at http://www.dtc.org/impNtc/ope/ope_8796.pdf. 
SMART/Track was established in 2004 and featured a stock loan recall 
notification service. Securities Exchange Act Release No. 50029 
(July 15, 2004), 69 FR 43870 (July 22, 2004). DTC later added a 
corporate action liability notification service [Securities Exchange 
Act Release No. 50887 (Dec. 20, 2004), 69 FR 77802 (Dec. 28, 2004)] 
and an agency lending disclosure service to SMART/Track. [Securities 
Exchange Act Release No. 52104 (July 21, 2005), 70 FR 43730 (July 
28, 2004)].
    \6\ E.g., New York Stock Exchange (``NYSE'') Rule 282 and 
American Stock Exchange Rule 783. NYSE Rule 282 was recently amended 
to, among other things, eliminate the requirement for paper buy-in 
notices to permit electronic notices, including those from DTC. 
Securities Exchange Act Release No. 52842 (Nov. 28, 2005), 70 FR 
72321 (Dec. 2, 2005) [File No. SR-NYSE-2005-50].
---------------------------------------------------------------------------

    The first phase of the service will be National Securities Clearing 
Corporation's (``NSCC'') Continuous Net Settlement (``CNS'') buy-in 
execution notices. DTC participants will send these notices to CNS 
through SMART/Track. After CNS validates these notices (e.g. verifies 
certain details of the buy-in execution such as the quantity of the 
buy-in) the DTC participant that was bought-in will be notified of its 
liability through a SMART/Track notice.\7\
---------------------------------------------------------------------------

    \7\ Any notice or report received by participants through SMART/
Track will be in addition to (and will not replace) any notices or 
reports currently being distributed to participants by their SRO 
with respect to their buy-in activity.
---------------------------------------------------------------------------

    The second phase of the service will permit DTC participants to 
transmit CNS Notices of Intent to Buy-In and Buy-In Orders for 
processing. CNS will send notification to the DTC participant being 
bought-in of its potential liability through SMART/Track.
    Notices pertaining to buy-ins other than CNS buy-ins (``non-CNS 
buy-ins'') \8\ and Municipal Securities Rulemaking Board (``MSRB'') 
closeouts will be the final function implemented on SMART/Track. Users 
will be able to create and transmit to the designated counterparty buy-
in intent notices and MSRB closeout notices through SMART/Track. Users 
receiving such buy-in notice or MSRB closeout notice will be able to 
accept or reject the notice online. The sender of such buy-in notice or 
MSRB closeout notice will be able to cancel a notice in any status, 
extend the delivery date, or change the quantity or amount.
---------------------------------------------------------------------------

    \8\ Non-CNS buy-ins include NYSE, AMEX, NASD, and NSCC Balance-
Order buy-ins.
---------------------------------------------------------------------------

    Once fully implemented, the buy-in service will feature:
     Online cancellation and updating of a buy-in notice.
     Search and sort capability on any field in a buy-in 
notice.
     Audit trail with a complete record of actions taken 
regarding a notice, including time, date, and the person taking the 
action.
     Links to DTC systems to indicate if the security subject 
to a buy-in is undergoing a dividend or corporate action or has been 
chilled for delivery.
     Automatic archiving.
     Seven-year record retention that is easily available 
online.
    SMART/Track for Buy-Ins is subject to DTC's gross negligence and 
willful misconduct standard of liability for information services.
    DTC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \9\ and the rules and 
regulations thereunder because it will promote the prompt and accurate 
clearance and settlement of securities transactions by providing 
important and timely notifications relating to buy-ins between 
participant counterparties.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    DTC 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

    Written comments relating to the proposed rule change have not yet 
been solicited or received. DTC will notify the Commission of any 
written comments received by DTC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(iii) \10\ of the Act and Rule 19b-4(f)(4) \11\ thereunder 
because it effects a change in an existing service of DTC that does not 
adversely affect the safeguarding of securities or funds in DTC's 
control or for which DTC is responsible and does not significantly 
affect DTC's or its participants' respective rights or obligations. At 
any time within 60 days of the filing of such 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and

[[Page 1459]]

arguments concerning the foregoing, including whether the proposed rule 
change, as amended, is consistent with the Act. Comments may be 
submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-DTC-2005-19 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.

    All submissions should refer to File No. SR-DTC-2005-19. 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 (http://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 DTC's principal office and on DTC's Web 
site at http://www.dtc.org/impNtc/mor/index.html. 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 submission 
should refer to File No. SR-DTC-2005-19 and should be submitted on or 
before January 30, 2006.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\12\
Nancy M. Morris,
Secretary.
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E6-45 Filed 1-6-06; 8:45 am]
BILLING CODE 8010-01-P