Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Participant Exchange System, 15237-15238 [E6-4345]

Download as PDF Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / Notices 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–CBOE–2006–22 on the subject line. Paper Comments SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53503; SR-DTC–2006–01] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Participant Exchange System March 16, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on January 19, 2006, The Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule All submissions should refer to File change as described in Items I, II, and Number SR–CBOE–2006–22. This file III below, which Items have been number should be included on the prepared primarily by DTC. The subject line if e-mail is used. To help the Commission is publishing this notice to Commission process and review your solicit comments on the proposed rule comments more efficiently, please use change from interested persons. only one method. The Commission will post all comments on the Commission’s I. Self-Regulatory Organization’s Statement of the Terms of Substance of Internet Web site (http://www.sec.gov/ the Proposed Rule Change rules/sro.shtml). Copies of the Under the proposed rule change, DTC submission, all subsequent will disable its Participant Exchange amendments, all written statements (‘‘PEX’’) buy-in functionality for the with respect to the proposed rule National Securities Clearing change that are filed with the Corporation’s (‘‘NSCC’’) Continuous Net Commission, and all written Settlement (‘‘CNS’’) buy-ins on or about communications relating to the February 10, 2006. proposed rule change between the Commission and any person, other than II. Self-Regulatory Organization’s Statement of the Purpose of, and those that may be withheld from the Statutory Basis for, the Proposed Rule public in accordance with the Change provisions of 5 U.S.C. 552, will be available for inspection and copying in In its filing with the Commission, the Commission’s Public Reference DTC included statements concerning Room. Copies of such filing also will be the purpose of and basis for the available for inspection and copying at proposed rule change and discussed any comments it received on the proposed the principal office of the CBOE. All rule change. The text of these statements comments received will be posted may be examined at the places specified without change; the Commission does in Item IV below. DTC has prepared not edit personal identifying summaries, set forth in sections A, B, information from submissions. You and C below, of the most significant should submit only information that you wish to make available publicly. All aspects of such statements. submissions should refer to File A. Self-Regulatory Organization’s Number SR–CBOE–2006–22 and should Statement of the Purpose of, and be submitted on or before April 17, Statutory Basis for, the Proposed Rule 2006. Change Between 2003 and 2005, DTC made For the Commission, by the Division of several rule filings to establish and Market Regulation, pursuant to delegated enhance its SMART/Track service.2 In authority.16 rule filing SR–DTC–2005–19, DTC Nancy M. Morris, • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. Secretary. [FR Doc. E6–4367 Filed 3–24–06; 8:45 am] wwhite on PROD1PC65 with NOTICES BILLING CODE 8010–01–P 16 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 18:19 Mar 24, 2006 Jkt 208001 1 15 U.S.C. 78s(b)(1). Exchange Act Release Nos. 50029 (July 15, 2004), 69 FR 43870 (July 22, 2004) (Universal Hub, Stock Loan notification service); 50887 (Dec. 20, 2004), 69 FR 77802 (Dec. 28, 2004) (Corporate Action Liability Notification Service); 52104 (July 21, 2005), 70 FR 43730 (July 28, 2005) (SMART/Track for Agency Lending Disclosure); and 53032 (Dec. 28, 2005), 71 FR 1457 (Jan. 9, 2006) (SMART/Track for Buy-Ins) [SR–DTC–2005–19]. 2 Securities PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 15237 added the SMART/Track for Buy-Ins service that provides automated communication, warehousing, and tracking of various types of buy-in related notices.3 As part of that filing, DTC announced that the SMART/Track for Buy-Ins service would replace the buy-in functionality of DTC’s PEX platform. Under this proposed rule change, DTC will disable the PEX functionality for NSCC’s CNS buy-ins on or about February 10, 2006.4 Accordingly, DTC participants and NSCC CNS users must register for the SMART/Track for BuyIns service. DTC has been assisting its participants and CNS users in this regard. The PEX buy-in functionality for buyins other than NSCC CNS buy-ins (i.e. NYSE, AMEX, NASD, and NSCC Balance Order buy-ins) and for Municipal Securities Rulemaking Board closeouts will remain active until the final phase of SMART/Track for Buy-Ins is implemented, which is currently anticipated to happen in June 2006. When that happens, all PEX buy-in functionality will be disabled pursuant to a rule filing that DTC will file at that time.5 DTC and NSCC will notify their participants of the exact date of such termination through Important Notices. DTC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act 6 and the rules and regulations thereunder because it is consistent with DTC’s obligation to safeguard securities and funds in its custody or control. 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 DTC has not solicited or received written comments relating to the proposed rule change. DTC will notify the Commission of any written comments it receives. 3 Securities Exchange Act Release No. 53032 supra note 2. 4 DTC and NSCC have notified their respective participants of this action. DTC Important Notice B#9049–06 (Jan. 19, 2006) available online at http:// www.dtc.org/impNtc/ope/ope_9049-06.pdf; NSCC Important Notice A#6189 (Jan. 19, 2006), available online at http://www.nscc.com/impnot/notices/ notice2006/a6189.pdf. 5 PEX will remain a DTC service for other functions not related to buy-ins. 6 15 U.S.C. 78q–1. \\ALPHA3\E\FR\FM\27MRN1.SGM 27MRN1 15238 Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / Notices 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) 7 of the Act and Rule 19b–4(f)(4) 8 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 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, as amended, is consistent with the Act. Comments may be submitted by any of the following methods: wwhite on PROD1PC65 with NOTICES 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–2006–01 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 20549–1090. All submissions should refer to File No. SR–DTC–2006–01. 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 submissions should refer to File No. SR–DTC–2006– 01 and should be submitted on or before April 17, 2006. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.9 Nancy M. Morris, Secretary. [FR Doc. E6–4345 Filed 3–24–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53509; File No. SR–NASD– 2006–036] Self Regulatory Organizations; National Association of Securities Dealers, Inc.; Notice of Filing and Order Granting Accelerated Approval of Proposed Rule Change Relating to Certification by the Chief Executive Officer Under NASD Interpretive Material 3013 March 17, 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 March 7, 2006, the National Association of Securities Dealers, Inc. (‘‘NASD’’) filed with the Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by NASD. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. In addition, the Commission is granting accelerated approval of the proposed rule change for the reasons discussed below. 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 7 15 U.S.C. 78s(b)(3)(A)(iii). 8 17 CFR 240.19b–4(f)(4). VerDate Aug<31>2005 18:19 Mar 24, 2006 1 15 Jkt 208001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NASD is proposing to amend NASD Interpretive Material 3013 (‘‘IM–3013’’) to clearly establish the timing with respect to the requirement to submit to the member’s board of directors and audit committee a report that evidences certain processes that form the basis of a certification by the Chief Executive Officer (‘‘CEO’’) under Rule 3013. Below is the text of the proposed rule change. Proposed new language is in italics; proposed deletions are in brackets. * * * * * 3000. RESPONSIBILITIES RELATING TO ASSOCIATED PERSONS, EMPLOYEES, AND OTHERS’ EMPLOYEES * * * * * IM–3013. Annual Compliance and Supervision Certification * * * * * Annual Compliance and Supervision Certification The undersigned is the chief executive officer (or equivalent officer) of [name of member corporation/ partnership/sole proprietorship] (the ‘‘Member’’). As required by NASD Rule 3013(b), the undersigned makes the following certification: 1. through 2. No change. 3. The Member’s processes, with respect to paragraph 1 above, are evidenced in a report reviewed by the chief executive officer (or equivalent officer), chief compliance officer, and such other officers as the Member may deem necessary to make this certification[[, and]]. The final report has been submitted to the Member’s board of directors and audit committee or will be submitted to the Member’s board of directors and audit committee (or equivalent bodies) at the earlier of their next scheduled meetings or within 45 days of the date of execution of this certification. 4. No change. * * * * * The report required in paragraph 3 of the certification must document the member’s processes for establishing, maintaining, reviewing, testing and modifying compliance policies, that are reasonably designed to achieve compliance with applicable NASD rules, MSRB rules and federal securities laws and regulations, and any principal designated by the member may prepare the report. The report must be produced prior to execution of the certification and be reviewed by the chief executive \\ALPHA3\E\FR\FM\27MRN1.SGM 27MRN1

Agencies

[Federal Register Volume 71, Number 58 (Monday, March 27, 2006)]
[Notices]
[Pages 15237-15238]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-4345]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53503; SR-DTC-2006-01]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Participant Exchange System

March 16, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 19, 2006, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
primarily by DTC. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Under the proposed rule change, DTC will disable its Participant 
Exchange (``PEX'') buy-in functionality for the National Securities 
Clearing Corporation's (``NSCC'') Continuous Net Settlement (``CNS'') 
buy-ins on or about February 10, 2006.

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.

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

    Between 2003 and 2005, DTC made several rule filings to establish 
and enhance its SMART/Track service.\2\ In rule filing SR-DTC-2005-19, 
DTC added the SMART/Track for Buy-Ins service that provides automated 
communication, warehousing, and tracking of various types of buy-in 
related notices.\3\ As part of that filing, DTC announced that the 
SMART/Track for Buy-Ins service would replace the buy-in functionality 
of DTC's PEX platform.
    Under this proposed rule change, DTC will disable the PEX 
functionality for NSCC's CNS buy-ins on or about February 10, 2006.\4\ 
Accordingly, DTC participants and NSCC CNS users must register for the 
SMART/Track for Buy-Ins service. DTC has been assisting its 
participants and CNS users in this regard.
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    \2\ Securities Exchange Act Release Nos. 50029 (July 15, 2004), 
69 FR 43870 (July 22, 2004) (Universal Hub, Stock Loan notification 
service); 50887 (Dec. 20, 2004), 69 FR 77802 (Dec. 28, 2004) 
(Corporate Action Liability Notification Service); 52104 (July 21, 
2005), 70 FR 43730 (July 28, 2005) (SMART/Track for Agency Lending 
Disclosure); and 53032 (Dec. 28, 2005), 71 FR 1457 (Jan. 9, 2006) 
(SMART/Track for Buy-Ins) [SR-DTC-2005-19].
    \3\ Securities Exchange Act Release No. 53032 supra note 2.
    \4\ DTC and NSCC have notified their respective participants of 
this action. DTC Important Notice B9049-06 (Jan. 19, 2006) 
available online at http://www.dtc.org/impNtc/ope/ope_9049-06.pdf; 
NSCC Important Notice A6189 (Jan. 19, 2006), available 
online at http://www.nscc.com/impnot/notices/notice2006/a6189.pdf.
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    The PEX buy-in functionality for buy-ins other than NSCC CNS buy-
ins (i.e. NYSE, AMEX, NASD, and NSCC Balance Order buy-ins) and for 
Municipal Securities Rulemaking Board closeouts will remain active 
until the final phase of SMART/Track for Buy-Ins is implemented, which 
is currently anticipated to happen in June 2006. When that happens, all 
PEX buy-in functionality will be disabled pursuant to a rule filing 
that DTC will file at that time.\5\ DTC and NSCC will notify their 
participants of the exact date of such termination through Important 
Notices.
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    \5\ PEX will remain a DTC service for other functions not 
related to buy-ins.
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    DTC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \6\ and the rules and 
regulations thereunder because it is consistent with DTC's obligation 
to safeguard securities and funds in its custody or control.
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    \6\ 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

    DTC has not solicited or received written comments relating to the 
proposed rule change. DTC will notify the Commission of any written 
comments it receives.

[[Page 15238]]

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) \7\ of the Act and Rule 19b-4(f)(4) \8\ 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 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 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 
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-2006-01 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 20549-1090.

All submissions should refer to File No. SR-DTC-2006-01. 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 
submissions should refer to File No. SR-DTC-2006-01 and should be 
submitted on or before April 17, 2006.
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    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
Nancy M. Morris,
Secretary.
[FR Doc. E6-4345 Filed 3-24-06; 8:45 am]
BILLING CODE 8010-01-P