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
<![CDATA[
Federal Register / Vol. 71, No. 58 / Monday, March 27, 2006 / Notices
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–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 (https://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 https://
www.dtc.org/impNtc/ope/ope_9049-06.pdf; NSCC
Important Notice A#6189 (Jan. 19, 2006), available
online at https://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 (https://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 (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 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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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 https://www.dtc.org/impNtc/ope/ope_9049-06.pdf;
NSCC Important Notice A6189 (Jan. 19, 2006), available
online at https://www.nscc.com/impnot/notices/notice2006/a6189.pdf.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\5\ PEX will remain a DTC service for other functions not
related to buy-ins.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\6\ 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
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
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 (https://
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 (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
submissions should refer to File No. SR-DTC-2006-01 and should be
submitted on or before April 17, 2006.
---------------------------------------------------------------------------
\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
