Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify Provisions in the Rules of the Government Securities Division Relating to the GCF Forward Mark Component of the Funds-Only Settlement Process, 30701-30703 [E6-8237]

Download as PDF Federal Register / Vol. 71, No. 103 / Tuesday, May 30, 2006 / Notices purpose of the rule was to relieve licensees of the burden of filing annual FSAR revisions while assuring that such revisions are made at least every 24 months. The NRC staff examined the licensee’s rationale to support the exemption request and concluded that it would meet the underlying purpose of 10 CFR 50.71(e)(4). The licensee’s proposed schedule for the PBNP FSAR and PINGP FSAR updates will ensure that the FSAR will be kept current for all units within 24 months of the last revision. The proposed schedule satisfies the maximum 24-month interval between FSAR revisions specified by 10 CFR 50.71(e)(4). The requirement to revise the FSAR annually or within 6 months after refueling outages for each unit, therefore, is not necessary to achieve the underlying purpose of the rule. Based on a consideration of the licensee’s proposed exemption, the NRC staff concludes that literal application of 10 CFR 50.71(e)(4) would require the licensee to update the same document within 6 months after a refueling outage for either unit at each site, a more burdensome requirement than intended by the regulation. Therefore, the NRC staff concludes that, pursuant to 10 CFR 50.12(a)(2)(ii), special circumstances are present. jlentini on PROD1PC65 with NOTICES 4.0 Conclusion Accordingly, the Commission has determined that, pursuant to 10 CFR 50.12(a), the exemption is authorized by law, will not present an undue risk to the public health and safety, and is consistent with the common defense and security. Also, special circumstances are present. Therefore, the Commission hereby grants NMC an exemption from the requirements of 10 CFR 50.71(e)(4) to submit updates to the PBNP FSAR and PINGP FSAR annually or within 6 months of each unit’s refueling outage. The licensee will be required to submit updates of the PBNP and PINGP updated FSARs once per fuel cycle, within 6 months following completion of each PBNP, Unit 1, refueling outage and within 6 months of each PINGP, Unit 2, refueling outage, respectively, not to exceed 24 months from the last submittal for either site. Pursuant to 10 CFR 51.32, the Commission has determined that the granting of this exemption will not have a significant effect on the quality of the human environment (71 FR 28889). This exemption is effective upon issuance. Dated at Rockville, Maryland, this 22nd day of May 2006. VerDate Aug<31>2005 16:51 May 26, 2006 Jkt 208001 For the Nuclear Regulatory Commission. Catherine Haney, Director, Division of Operating Reactor Licensing, Office of Nuclear Reactor Regulation. [FR Doc. E6–8262 Filed 5–26–06; 8:45 am] BILLING CODE 7590–01–P POSTAL SERVICE Sunshine Act, Board of Governors; Meeting 8:30 a.m., Tuesday, June 6, 2006; and 9 a.m., Wednesday, June 7, 2006. PLACE: Indianapolis, Indiana, at the Westin Hotel, 50 South Capitol Avenue. STATUS: June 6—8:30 a.m. (Closed); June 7—9 .a.m. (Closed). MATTERS TO BE CONSIDERED: TIMES AND DATES: Tuesday, June 6, at 8:30 a.m. (Closed) 1. Labor Negotiations Planning. 2. Rate Case Planning. 3. Strategic Planning. 4. Financial Update. 5. Personnel Matters and Compensation Issues. Wednesday, June 7, at 9 a.m. (Closed— if needed.) 1. Continuation of Tuesday’s agenda. FOR FURTHER INFORMATION CONTACT: Wendy A. Hocking, Secretary of the Board, U.S. Postal Service, 475 L’Enfant Plaza, SW., Washington, DC 20260– 1000. Telephone (202) 268–4800. Wendy A. Hocking, Secretary. [FR Doc. 06–4993 Filed 5–25–06; 3:21pm] BILLING CODE 7710–12–M 30701 The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552(b)(c)(2), (6) and (7) and 17 CFR 200.402(a)(2), (6) and (7) permit consideration of the scheduled matter at the Closed Meeting. Commissioner Atkins, as duty officer, determined that Commission business required the above change and that no earlier notice thereof was possible. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact the Office of the Secretary at (202) 551–5400. Dated: May 24, 2006. Nancy M. Morris, Secretary. [FR Doc. 06–4955 Filed 5–25–06; 10:46 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–53852; File No. SR–FICC– 2006–04] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify Provisions in the Rules of the Government Securities Division Relating to the GCF Forward Mark Component of the Funds-Only Settlement Process May 23, 2006. SECURITIES AND EXCHANGE COMMISSION Sunshine Act; Meeting Federal Register Citation of Previous Announcement: [71 FR 28892, May 18, 2006] Closed Meeting. 100 F Street, NE., Washington, STATUS: PLACE: DC. DATE AND TIME OF PREVIOUSLY ANNOUNCED MEETING: Thursday, May 25, 2006 at 2 p.m. Additional Item and Time Change. The Closed Meeting scheduled for Thursday, May 25, 2006 at 2 p.m. has been changed to Thursday, May 25, 2006 at 1 p.m. with the following item being added: Congressional request for non-public documents. CHANGE IN THE MEETING: PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on March 24, 2006, the Fixed Income Clearing Corporation (‘‘FICC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change described in Items I, II, and III below, which items have been prepared primarily by FICC. FICC filed the proposed rule change pursuant to section 19(b)(3)(A)(iii) of the Act 2 and Rule 19b–4(f)(4) thereunder 3 so that 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 parties. 1 15 U.S.C. 78s(b)(1). U.S.C. 78s(b)(3)(A)(iii). 3 17 CFR 240.19b–4(f)(4). 2 15 E:\FR\FM\30MYN1.SGM 30MYN1 30702 Federal Register / Vol. 71, No. 103 / Tuesday, May 30, 2006 / Notices I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change clarifies provisions in the rules of the Government Securities Division (‘‘GSD’’) of FICC relating to the GCF forward mark component of the fundsonly settlement process. jlentini on PROD1PC65 with NOTICES II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FICC 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. FICC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.4 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change FICC’s GCF Repo Service enables dealer members of the GSD to freely and actively trade general collateral repos throughout the day without requiring intraday, trade-for-trade settlement on a delivery-versus payment basis. The GSD’s funds-only settlement process is the mechanism by which cash adjustments are passed through from one member to another. One component of GSD’s funds-only settlement process is the GCF forward mark. The GCF forward mark is a cash mark-to-market adjustment that brings members’ GCF net settlement positions from contract value to current market value.5 As the novation of forward-settling trades occurs one or more days prior to the settlement of such trades, FICC incurs multiday settlement exposure on such trades. To mitigate this risk, FICC collects and passes through on a daily basis, as a part of the morning fundsonly settlement process, a mark-tomarket amount equivalent to its ongoing exposure on each forward net settlement position. This mark-to-market on forward-settling trades is determined in FICC’s forward mark calculation. Rule 13 of the GSD rules governs its funds-only settlement process. A review of this rule has revealed the need for clarification in the rule’s language that describes the GSD’s forward mark 4 The Commission has modified the text of the summaries prepared by FICC. 5 A mark-to-market is essentially a repricing of forward settling activity on a daily basis. VerDate Aug<31>2005 16:51 May 26, 2006 Jkt 208001 calculation. Two defined terms in the current GSD rules that were intended to represent the entire mark-to-market attributable to forward-settling GCF Repo activity, namely Credit GCF Interest Rate Mark and Debit GCF Interest Rate Mark, are defined in a way that causes them to reflect only tentative or interim amounts. As currently defined in the Rules, the determination of a Credit GCF Interest Rate Mark or a Debit GCF Interest Rate Mark is based solely on the calculation of an amount defined in the GSD rules as the GCF Interest Rate Mark; however, the definition of GCF Interest Rate Mark omits a required reference to the calculation of interest accrued on the financing aspect of the applicable transaction.6 A definition that would better reflect the actual mark-to-market for a particular forward-settling GCF Repo transaction should also take into account both the GCF Interest Rate Mark and the interest accrued on the financing component of the transaction. Therefore, as currently defined these terms do not fully reflect the actual calculations that are both required and currently used by FICC to mitigate risk exposure on forward settling GCF Repo trades. In order to conform the GSD Rules to actual and correct practice in this regard, FICC is proposing to revise the rules to: (i) Add a new term called GCF Forward Mark, (ii) replace the abovementioned terms Credit GCF Interest Rate Mark and Debit GCF Interest Rate Mark with newly defined terms to be called Credit GCF Forward Mark and Debit GCF Forward Mark,7and (iii) utilize the term Accrued Repo Interestto-Date contained in a recently approved rule filing by the Commission.8 The term GCF Forward Mark will properly reflect the calculation of the outstanding GCF Repo transaction as the sum of the Accrued Repo-Interest-toDate and the GCF Interest Rate Mark. To the extent that the mark-to-market for a particular member is positive, it shall be deemed a Credit GCF Forward Mark and to the extent that the mark-to-market for a particular member is negative, it shall be deemed to be a Debit GCF Forward Mark. Whether reflecting a credit or a 6 The definition of ‘‘GCF Interest Rate Mark’’ is included for reference purposes in Exhibit 5 to the proposed rule filing. 7 The deletion of the terms Credit GCF Interest Rate Mark and Debit GCF Interest Rate Mark and the addition of the terms Credit GCF Forward Mark and Debit GCF Forward Mark necessitates a conforming change to provisions of Section 1 of Rule 13 of the GSD rules. 8 Securities Exchange Act Release No. 53534 (March 21, 2006), 71 FR 15781 (March 28, 2006) [File No. SR–FICC–2005–18]. PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 debit, the newly-defined GCF Forward Mark will represent a calculation which accurately describes the portion of a member’s forward mark adjustment payment attributable to a particular GCF Repo transaction. In addition to the above, a technical adjustment has been made to correct a typographical error in subsections (f) and (g) of Section 1 of Rule 13 which transposed the usage of terms involving debits and credits in connection with a description of certain situations where a member would be required to make a payment to or could collect a payment from FICC as part of the funds-only settlement process. The proposed change is consistent with section 17A of the Act 9 and the rules and regulations thereunder applicable to FICC because it makes technical changes that clarify FICC’s rules in a manner consistent with the safeguarding of securities and funds which are in the custody or control of FICC or for which it is responsible. (B) Self-Regulatory Organization’s Statement on Burden on Competition FICC 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. FICC will notify the Commission of any written comments received by FICC. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective upon filing pursuant to section 19(b)(3)(A)(iii) of the Act 10. and Rule 19b 4(f)(4)11 thereunder because it effects a change in an existing service of FICC that (i) does not adversely affect the safeguarding of securities or funds in the custody or control of FICC or for which it is responsible and (ii) does not significantly affect the respective rights or obligations of FICC or persons using the service. At any time within sixty 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, 915 U.S.C. 78q–1. U.S.C. 78s(b)(3)(A)(iii). 1117 CFR 240.196b–4(f)(4). 1015 E:\FR\FM\30MYN1.SGM 30MYN1 Federal Register / Vol. 71, No. 103 / Tuesday, May 30, 2006 / Notices or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: For the Commission by the Division of Market Regulation, pursuant to delegated authority.12 Nancy M. Morris, Secretary. [FR Doc. E6–8237 Filed 5–26–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments [Release No. 34–53850; File No. SR–ISE– 2006–21] • 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 Number SR–FICC–2006–04 on the subject line. Self-Regulatory Organizations; International Securities Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Exposure Period for Crossing Orders May 23, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 • Send paper comments in triplicate (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to Nancy M. Morris, Secretary, notice is hereby given that on April 17, Securities and Exchange Commission, 2006, the International Securities 100 F Street, NE., Washington, DC Exchange, Inc. (‘‘ISE’’ or ‘‘Exchange’’) filed with the Securities and Exchange 20549–1090. Commission (‘‘Commission’’) the All submissions should refer to File proposed rule change as described in Number SR–FICC–2006–04. This file Items I and II below, which Items have number should be included on the been prepared by the ISE. The ISE filed subject line if e-mail is used. To help the the proposed rule change pursuant to Commission process and review your section 19(b)(3)(A) of the Act 3 and Rule comments more efficiently, please use 19b–4(f)(6) thereunder,4 which renders only one method. The Commission will the proposal effective upon filing with post all comments on the Commission’s the Commission. The Commission is Internet Web site (http://www.sec.gov/ publishing this notice to solicit rules/sro.shtml). Copies of the comments on the proposed rule change submission, all subsequent from interested persons. amendments, all written statements I. Self-Regulatory Organization’s with respect to the proposed rule Statement of the Terms of Substance of change that are filed with the the Proposed Rule Change Commission, and all written The ISE proposes to decrease the communications relating to the exposure period for crossing orders proposed rule change between the Commission and any person, other than under ISE Rule 717(d) and (e) to three seconds. The text of the proposed rule those that may be withheld from the change is as follows, with deletions in public in accordance with the [brackets] and additions italicized. provisions of 5 U.S.C. 552, will be available for inspection and copying in Rule 717. Limitations on Orders the Commission’s Public Reference * * * * * Section, 100 F Street, NE., Washington, (d) Principal Transactions. DC 20549. Copies of such filing also will Electronic Access Members may not be available for inspection and copying execute as principal orders they at the principal office of FICC and on represent as agent unless (i) agency FICC’s Web site at http://www.ficc.com. orders are first exposed on the Exchange All comments received will be posted for at least three (3) [thirty (30)] seconds, without change; the Commission does (ii) the Electronic Access Member has not edit personal identifying been bidding or offering on the information from submissions. You Exchange for at least three (3) [thirty should submit only information that 12 17 CFR 200.30–3(a)(12). you wish to make available publicly. All 1 15 U.S.C. 78s(b)(1). submissions should refer to File 2 17 CFR 240.19b–4. Number SR-FICC–2006–04 and should 3 15 U.S.C. 78s(b)(3)(A). be submitted on or before June 20, 2006. 4 17 CFR 240.19b–4(f)(6). jlentini on PROD1PC65 with NOTICES Paper Comments≤ VerDate Aug<31>2005 16:51 May 26, 2006 Jkt 208001 PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 30703 (30)] seconds prior to receiving an agency order that is executable against such bid or offer, or (iii) the Member utilizes the Facilitation Mechanism pursuant to Rule 716(d). (e) Solicitation Orders. Electronic Access Members may not execute orders they represent as agent on the Exchange against orders solicited from Members and non-member brokerdealers to transact with such orders unless (i) the unsolicited order is first exposed on the Exchange for at least three (3) [thirty (30)] seconds, or (ii) the Member utilizes the Solicited Order Mechanism pursuant to Rule 716(e). * * * * * 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 ISE 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 ISE 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 1. Purpose An Electronic Access Member (‘‘EAM’’) of the Exchange may not execute an order it represents as agent with a facilitation or solicited order (referred to herein as ‘‘crossing orders’’) unless it complies with the order exposure requirements contained in ISE Rule 717(d) and (e) respectively. As set forth in these provisions, if an EAM seeking to cross two orders does not choose to use the Facilitation Mechanism or the Solicited Order Mechanism, which automatically expose crossing orders for 3 seconds, it is required to comply with a 30-second exposure requirement. Specifically, when an EAM chooses not to use the Facilitation Mechanism, it may not execute a facilitation cross unless (i) the agency order is first exposed on the Exchange for at least 30 seconds; or (ii) the EAM has been bidding or offering on the Exchange for at least 30 seconds prior to receiving the agency order that is executable against such bid or offer. Similarly, when an EAM chooses not to use the Solicited Order Mechanism, it may not execute a solicitation cross E:\FR\FM\30MYN1.SGM 30MYN1

Agencies

[Federal Register Volume 71, Number 103 (Tuesday, May 30, 2006)]
[Notices]
[Pages 30701-30703]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8237]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53852; File No. SR-FICC-2006-04]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Clarify Provisions in the Rules of the Government Securities Division 
Relating to the GCF Forward Mark Component of the Funds-Only Settlement 
Process

May 23, 2006.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 24, 2006, the Fixed 
Income Clearing Corporation (``FICC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change described 
in Items I, II, and III below, which items have been prepared primarily 
by FICC. FICC filed the proposed rule change pursuant to section 
19(b)(3)(A)(iii) of the Act \2\ and Rule 19b-4(f)(4) thereunder \3\ so 
that 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 parties.
---------------------------------------------------------------------------

    \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).

---------------------------------------------------------------------------

[[Page 30702]]

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

    The proposed rule change clarifies provisions in the rules of the 
Government Securities Division (``GSD'') of FICC relating to the GCF 
forward mark component of the funds-only settlement process.

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

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

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

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

    FICC's GCF Repo Service enables dealer members of the GSD to freely 
and actively trade general collateral repos throughout the day without 
requiring intraday, trade-for-trade settlement on a delivery-versus 
payment basis. The GSD's funds-only settlement process is the mechanism 
by which cash adjustments are passed through from one member to 
another. One component of GSD's funds-only settlement process is the 
GCF forward mark. The GCF forward mark is a cash mark-to-market 
adjustment that brings members' GCF net settlement positions from 
contract value to current market value.\5\
---------------------------------------------------------------------------

    \5\ A mark-to-market is essentially a repricing of forward 
settling activity on a daily basis.
---------------------------------------------------------------------------

    As the novation of forward-settling trades occurs one or more days 
prior to the settlement of such trades, FICC incurs multiday settlement 
exposure on such trades. To mitigate this risk, FICC collects and 
passes through on a daily basis, as a part of the morning funds-only 
settlement process, a mark-to-market amount equivalent to its ongoing 
exposure on each forward net settlement position. This mark-to-market 
on forward-settling trades is determined in FICC's forward mark 
calculation.
    Rule 13 of the GSD rules governs its funds-only settlement process. 
A review of this rule has revealed the need for clarification in the 
rule's language that describes the GSD's forward mark calculation. Two 
defined terms in the current GSD rules that were intended to represent 
the entire mark-to-market attributable to forward-settling GCF Repo 
activity, namely Credit GCF Interest Rate Mark and Debit GCF Interest 
Rate Mark, are defined in a way that causes them to reflect only 
tentative or interim amounts.
    As currently defined in the Rules, the determination of a Credit 
GCF Interest Rate Mark or a Debit GCF Interest Rate Mark is based 
solely on the calculation of an amount defined in the GSD rules as the 
GCF Interest Rate Mark; however, the definition of GCF Interest Rate 
Mark omits a required reference to the calculation of interest accrued 
on the financing aspect of the applicable transaction.\6\ A definition 
that would better reflect the actual mark-to-market for a particular 
forward-settling GCF Repo transaction should also take into account 
both the GCF Interest Rate Mark and the interest accrued on the 
financing component of the transaction. Therefore, as currently defined 
these terms do not fully reflect the actual calculations that are both 
required and currently used by FICC to mitigate risk exposure on 
forward settling GCF Repo trades.
---------------------------------------------------------------------------

    \6\ The definition of ``GCF Interest Rate Mark'' is included for 
reference purposes in Exhibit 5 to the proposed rule filing.
---------------------------------------------------------------------------

    In order to conform the GSD Rules to actual and correct practice in 
this regard, FICC is proposing to revise the rules to: (i) Add a new 
term called GCF Forward Mark, (ii) replace the above-mentioned terms 
Credit GCF Interest Rate Mark and Debit GCF Interest Rate Mark with 
newly defined terms to be called Credit GCF Forward Mark and Debit GCF 
Forward Mark,\7\and (iii) utilize the term Accrued Repo Interest-to-
Date contained in a recently approved rule filing by the Commission.\8\
---------------------------------------------------------------------------

    \7\ The deletion of the terms Credit GCF Interest Rate Mark and 
Debit GCF Interest Rate Mark and the addition of the terms Credit 
GCF Forward Mark and Debit GCF Forward Mark necessitates a 
conforming change to provisions of Section 1 of Rule 13 of the GSD 
rules.
    \8\ Securities Exchange Act Release No. 53534 (March 21, 2006), 
71 FR 15781 (March 28, 2006) [File No. SR-FICC-2005-18].
---------------------------------------------------------------------------

    The term GCF Forward Mark will properly reflect the calculation of 
the outstanding GCF Repo transaction as the sum of the Accrued Repo-
Interest-to-Date and the GCF Interest Rate Mark. To the extent that the 
mark-to-market for a particular member is positive, it shall be deemed 
a Credit GCF Forward Mark and to the extent that the mark-to-market for 
a particular member is negative, it shall be deemed to be a Debit GCF 
Forward Mark. Whether reflecting a credit or a debit, the newly-defined 
GCF Forward Mark will represent a calculation which accurately 
describes the portion of a member's forward mark adjustment payment 
attributable to a particular GCF Repo transaction.
    In addition to the above, a technical adjustment has been made to 
correct a typographical error in subsections (f) and (g) of Section 1 
of Rule 13 which transposed the usage of terms involving debits and 
credits in connection with a description of certain situations where a 
member would be required to make a payment to or could collect a 
payment from FICC as part of the funds-only settlement process.
    The proposed change is consistent with section 17A of the Act \9\ 
and the rules and regulations thereunder applicable to FICC because it 
makes technical changes that clarify FICC's rules in a manner 
consistent with the safeguarding of securities and funds which are in 
the custody or control of FICC or for which it is responsible.
---------------------------------------------------------------------------

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

(B) Self-Regulatory Organization's Statement on Burden on Competition

    FICC 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. FICC will notify the Commission of any 
written comments received by FICC.

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

    The foregoing rule change has become effective upon filing pursuant 
to section 19(b)(3)(A)(iii) of the Act \10\. and Rule 19b 4(f)(4)\11\ 
thereunder because it effects a change in an existing service of FICC 
that (i) does not adversely affect the safeguarding of securities or 
funds in the custody or control of FICC or for which it is responsible 
and (ii) does not significantly affect the respective rights or 
obligations of FICC or persons using the service. At any time within 
sixty 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,

[[Page 30703]]

or otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \10\15 U.S.C. 78s(b)(3)(A)(iii).
    \11\17 CFR 240.196b-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 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 Number SR-FICC-2006-04 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 Number SR-FICC-2006-04. 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 the principal office of FICC and on 
FICC's Web site at http://www.ficc.com. All comments received will be 
posted without change; the Commission does not edit personal 
identifying information from submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-FICC-2006-04 and should be submitted on 
or before June 20, 2006.

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

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-8237 Filed 5-26-06; 8:45 am]
BILLING CODE 8010-01-P