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
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SUPPLEMENTARY INFORMATION:
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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 https://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.
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3 17
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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
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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
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09JAN1
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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 (https://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 (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 DTC’s principal office and on DTC’s
Web site at https://www.dtc.org/impNtc/
mor/. 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
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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]
=======================================================================
-----------------------------------------------------------------------
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 https://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.
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\9\ 15 U.S.C. 78q-1.
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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.
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(4).
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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 (https://
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 (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 DTC's principal office and on DTC's Web
site at https://www.dtc.org/impNtc/mor/. 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.
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\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