Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Clarifying and Technical Changes to NSCC's Rules Regarding Its Fund/Serv Mutual Fund Processing System, 52199-52201 [E6-14528]

Download as PDF Federal Register / Vol. 71, No. 170 / Friday, September 1, 2006 / Notices incorporated by this filing into the Guide match those currently included in the agreements thereby affording both DTC and its participants the same rights and responsibilities as those afforded by the agreements. DTC believes that the proposed rule change is consistent with the requirements of the Act, as amended, and the rules and regulations thereunder because it incorporates existing terms of DTC participant agreements into DTC’s Guide and thus facilitates the safeguarding of securities in DTC’s 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 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. sroberts on PROD1PC70 with NOTICES 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 9 and Rule 19b–4(f)(4) 10 thereunder because the proposed rule effects a change in an existing service of DTC that (i) does not adversely affect the safeguarding of securities or funds in the custody or control of DTC or for which it is responsible and (ii) does not significantly affect the respective rights or obligations of DTC 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, 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: 9 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(4). 10 17 VerDate Aug<31>2005 16:21 Aug 31, 2006 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 Number SR–DTC–2006–09 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–DTC–2006–09. 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 DTC and on DTC’s Web site at http://www.dtc.org. 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–DTC–2006–09 and should be submitted on or before September 22, 2006. For the Commission by the Division of Market Regulation, pursuant to delegated authority.11 Nancy M. Morris, Secretary. [FR Doc. E6–14552 Filed 8–31–06; 8:45 am] [Release No. 34–54366; File No. SR–NSCC– 2006–07] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Clarifying and Technical Changes to NSCC’s Rules Regarding Its Fund/Serv Mutual Fund Processing System August 25, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on June 5, 2006, the National Securities Clearing Corporation (‘‘NSCC’’) 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 NSCC. NSCC 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change would make clarifying and technical changes to NSCC’s Rules principally as they relate to funds which are eligible for processing on Fund/Serv, NSCC’s mutual fund processing system. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.4 U.S.C. 78s(b)(1). U.S.C. 78s(b)(3)(A)(iii). 3 17 CFR 240.19b&ndash;4(f)(4). 4 The Commission has modified the text of the summaries prepared by NSCC. 2 15 11 17 Jkt 208001 SECURITIES AND EXCHANGE COMMISSION 1 15 BILLING CODE 8010–01–P PO 00000 CFR 200.30–3(a)(12). Frm 00148 Fmt 4703 Sfmt 4703 52199 E:\FR\FM\01SEN1.SGM 01SEN1 sroberts on PROD1PC70 with NOTICES 52200 Federal Register / Vol. 71, No. 170 / Friday, September 1, 2006 / Notices (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The purpose of the proposed rule change is to make clarifying and technical changes to NSCC’s Rules, principally as they relate to funds which are eligible for processing on Fund/Serv, NSCC’s mutual fund processing system. Rule 52 of NSCC Rules addresses NSCC’s mutual fund services. The types of funds which are eligible for NSCC’s mutual fund services, including the processing on Fund/Serv, are referenced in Section 1 of Rule 52 with supplemental references in Rules 1 and 3.5 Funds that are eligible for NSCC’s mutual fund services currently include investment companies regulated under the Investment Company Act of 1940, as amended; 6 bank and insurance funds such as guaranteed investment contracts, bank collective investments, and stable value funds; and certain offshore funds which are established under regulatory frameworks similar to the Investment Company Act (e.g., offshore funds established under the Undertaking for Collective Investment in Transferable Securities). Some of these fund types are explicitly mentioned in NSCC’s Rules (e.g., funds defined as ‘‘management companies’’ under section 4(3) of the Investment Company Act and funds regulated under bank and insurance law). Others have been added under NSCC’s general authority regarding the designation of ‘‘Eligible Mutual Funds’’ under Rule 3, Section 7 (e.g., unit investment trusts regulated under the Investment Company Act and certain offshore funds domiciled outside the United States.) The proposed changes to NSCC’s Rules will clarify the types of investment vehicles that are eligible for Fund/Serv processing, consolidate the operative provisions in Rule 3, and make technical changes to other rule provisions. The proposed amendment to Rule 3 establishes the defined term ‘‘Fund/Serv Eligible Fund’’ that includes any fund or other pooled investment entity that is eligible for NSCC’s mutual fund services, including processing on Fund/Serv,.under Rule 3, Section 7. (The defined terms ‘‘Eligible Investment Fund’’ and ‘‘Eligible Mutual Fund’’ are being deleted.) The term is analogous to the term ‘‘Cleared Securities’’ under Rule 3 which is applicable to securities that are eligible for NSCC’s clearance services. Rule 3 is 5 Settlement of Fund/Serv transactions is not guaranteed by NSCC. 6 15 U.S.C. 80a. VerDate Aug<31>2005 16:21 Aug 31, 2006 Jkt 208001 also amended to include a description of the current criteria used by NSCC in determining eligibility for ‘‘Fund/Serv Eligible Funds’’ and NSCC’s authority to establish additional criteria for eligibility from time to time using language consistent with that used for ‘‘Cleared Securities’’ in Rule 3. NSCC’s current membership requirements applicable to Fund Members admitted under Rule 51 and Addendum I will continue to apply without change. The NSCC Fund Member is the entity that is responsible for settlement of NSCC transactions on behalf of the fund. Additional, unrelated technical changes are made to several definitions in Rule 1. First, the definitions of ‘‘TPA’’ (i.e., third-party administrator) and ‘‘TPA Member’’ are amended to clarify that a ‘‘TPA Member’’ may act as an administrator for retirement and other benefit plans in general and not just with respect to plans which are structured as defined contribution plans under the Internal Revenue Code (i.e., defined benefit plans and nonqualified plans). Second, the definitions of ‘‘Insurance Entity’’ and ‘‘Fund Member’’ are amended to clarify that an individual cannot qualify, and only entities organized as a corporation, partnership, or other legal entity are covered by the definitions. NSCC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act 7 and the rules thereunder because clarifying the types of funds which are eligible for processing on NSCC’s Fund/ Serv system will further facilitate the accurate clearance and settlement of Fund/Serv transactions. (B) Self-Regulatory Organization’s Statement on Burden on Competition NSCC does not believe that the proposed rule change would 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. NSCC will notify the Commission of any written comments received by NSCC. 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 8 and Rule 19b–4(f)(4) 9 thereunder because the proposed rule effects a change in an existing service of NSCC that (i) does not adversely affect the safeguarding of securities or funds in the custody or control of the clearing agency or for which it is responsible and (ii) does not significantly affect the respective rights or obligations of the clearing agency or persons using the service. At any time within sixty days of the filing of such 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 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 rulecomments@sec.gov. Please include File Number SR–NSCC–2006–07 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–NSCC–2006–07. 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 8 15 7 15 PO 00000 U.S.C. 78q–1. Frm 00149 Fmt 4703 9 17 Sfmt 4703 E:\FR\FM\01SEN1.SGM U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(4). 01SEN1 Federal Register / Vol. 71, No. 170 / Friday, September 1, 2006 / Notices 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 NSCC and on NSCC’s Web site at http:// www.nscc.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–NSCC– 2006–07 and should be submitted on or before September 22, 2006. For the Commission by the Division of Market Regulation, pursuant to delegated authority.10 Nancy M. Morris, Secretary. [FR Doc. E6–14528 Filed 8–31–06; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54362; File No. SR–NYSE– 2006–07] Self-Regulatory Organizations; New York Stock Exchange LLC; Order Granting Approval of Proposed Rule Change and Amendment No. 1 Thereto and Notice of Filing and Order Granting Accelerated Approval to Amendment No. 2 Thereto To Amend Exchange Rule 104 Regarding the Requirement That Specialists Obtain Floor Official Approval for Destabilizing Dealer Account Transactions That Match the National Best Bid or Offer sroberts on PROD1PC70 with NOTICES August 25, 2006. I. Introduction On February 16, 2006, the New York Stock Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to amend NYSE Rule 104 (Dealings by Specialists) to permit specialists to effect destabilizing dealer account transactions when matching the national best bid or offer without requiring that they obtain Floor Official approval. On April 27, 2006, NYSE filed Amendment No. 1 to the proposed rule change. The proposed rule change, as amended, was published for comment 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Aug<31>2005 18:06 Aug 31, 2006 Jkt 208001 in the Federal Register on May 16, 2006.3 The Commission received one comment letter 4 and a letter from NYSE that responded to the issues raised by the commenter.5 On August 17, 2006, NYSE filed Amendment No. 2 to the proposed rule change.6 This order approves the proposed rule change, as amended by Amendment No. 1. Simultaneously, the Commission is providing notice of filing of Amendment No. 2 and granting accelerated approval of Amendment No. 2. II. Description of the Proposal NYSE Rule 104 governs specialists’ dealings in their specialty stocks. In particular, NYSE Rules 104.10(5) and (6) describe certain types of transactions that are not to be effected unless they are reasonably necessary to render the specialist’s position adequate to the needs of the market. In effect, these restrictions generally require specialists’ transactions for their own accounts to be ‘‘stabilizing’’ (i.e., against the trend of the market) and prohibit specialists from making transactions that are ‘‘destabilizing’’ (i.e., with the market trend by buying on plus ticks and selling on minus ticks), except with the approval of a Floor Official. The Exchange proposes to allow specialists to effect proprietary transactions on a destabilizing basis for their own account when such trades are effected at a price that matches the current national best bid or offer (‘‘NBBO’’) displayed by another market center. III. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning Amendment No. 2, including whether Amendment No. 2 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 rulecomments@sec.gov. Please include File No. SR–NYSE–2006–07 on the subject line. 3 See Securities Exchange Act Release No. 53782 (May 10, 2006), 71 FR 28399. 4 See e-mail from George Rutherfurd to the Commission, dated April 24, 2006 (‘‘Rutherfurd Letter’’). 5 Letter to Nancy M. Morris, Secretary, Commission, from Mary Yeager, Assistant Secretary, NYSE, dated July 20, 2006 (‘‘NYSE Response Letter’’). 6 Amendment No. 2 clarifies that a specialist’s ability to effect destabilizing dealer account transactions when matching the national best bid or offer applies when the national best bid or offer is established by another market center. PO 00000 Frm 00150 Fmt 4703 Sfmt 4703 52201 Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090.s All submissions should refer to File Number SR–NYSE–2006–07. 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 Room. Copies of such filing also will be available for inspection and copying at the principal office of the NYSE. 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–NYSE–2006–07 and should be submitted on or before September 22, 2006. IV. Discussion After careful consideration, the Commission finds that the proposed rule change, as amended, is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange 7 and, in particular, the requirements of Section 6 of the Act.8 Specifically, the Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,9 which requires, among other things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, and processing information 7 In approving this proposed rule change, as amended, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 8 15 U.S.C. 78f. 9 15 U.S.C. 78f(b)(5). E:\FR\FM\01SEN1.SGM 01SEN1

Agencies

[Federal Register Volume 71, Number 170 (Friday, September 1, 2006)]
[Notices]
[Pages 52199-52201]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-14528]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54366; File No. SR-NSCC-2006-07]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating To Clarifying and Technical Changes to NSCC's 
Rules Regarding Its Fund/Serv Mutual Fund Processing System

 August 25, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 5, 2006, the National 
Securities Clearing Corporation (``NSCC'') 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 NSCC. NSCC 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would make clarifying and technical 
changes to NSCC's Rules principally as they relate to funds which are 
eligible for processing on Fund/Serv, NSCC's mutual fund processing 
system.

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

    In its filing with the Commission, NSCC 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. NSCC 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 NSCC.

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[[Page 52200]]

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

    The purpose of the proposed rule change is to make clarifying and 
technical changes to NSCC's Rules, principally as they relate to funds 
which are eligible for processing on Fund/Serv, NSCC's mutual fund 
processing system.
    Rule 52 of NSCC Rules addresses NSCC's mutual fund services. The 
types of funds which are eligible for NSCC's mutual fund services, 
including the processing on Fund/Serv, are referenced in Section 1 of 
Rule 52 with supplemental references in Rules 1 and 3.\5\
---------------------------------------------------------------------------

    \5\ Settlement of Fund/Serv transactions is not guaranteed by 
NSCC.
---------------------------------------------------------------------------

    Funds that are eligible for NSCC's mutual fund services currently 
include investment companies regulated under the Investment Company Act 
of 1940, as amended; \6\ bank and insurance funds such as guaranteed 
investment contracts, bank collective investments, and stable value 
funds; and certain offshore funds which are established under 
regulatory frameworks similar to the Investment Company Act (e.g., 
offshore funds established under the Undertaking for Collective 
Investment in Transferable Securities). Some of these fund types are 
explicitly mentioned in NSCC's Rules (e.g., funds defined as 
``management companies'' under section 4(3) of the Investment Company 
Act and funds regulated under bank and insurance law). Others have been 
added under NSCC's general authority regarding the designation of 
``Eligible Mutual Funds'' under Rule 3, Section 7 (e.g., unit 
investment trusts regulated under the Investment Company Act and 
certain offshore funds domiciled outside the United States.)
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 80a.
---------------------------------------------------------------------------

    The proposed changes to NSCC's Rules will clarify the types of 
investment vehicles that are eligible for Fund/Serv processing, 
consolidate the operative provisions in Rule 3, and make technical 
changes to other rule provisions. The proposed amendment to Rule 3 
establishes the defined term ``Fund/Serv Eligible Fund'' that includes 
any fund or other pooled investment entity that is eligible for NSCC's 
mutual fund services, including processing on Fund/Serv,.under Rule 3, 
Section 7. (The defined terms ``Eligible Investment Fund'' and 
``Eligible Mutual Fund'' are being deleted.) The term is analogous to 
the term ``Cleared Securities'' under Rule 3 which is applicable to 
securities that are eligible for NSCC's clearance services. Rule 3 is 
also amended to include a description of the current criteria used by 
NSCC in determining eligibility for ``Fund/Serv Eligible Funds'' and 
NSCC's authority to establish additional criteria for eligibility from 
time to time using language consistent with that used for ``Cleared 
Securities'' in Rule 3.
    NSCC's current membership requirements applicable to Fund Members 
admitted under Rule 51 and Addendum I will continue to apply without 
change. The NSCC Fund Member is the entity that is responsible for 
settlement of NSCC transactions on behalf of the fund.
    Additional, unrelated technical changes are made to several 
definitions in Rule 1. First, the definitions of ``TPA'' (i.e., third-
party administrator) and ``TPA Member'' are amended to clarify that a 
``TPA Member'' may act as an administrator for retirement and other 
benefit plans in general and not just with respect to plans which are 
structured as defined contribution plans under the Internal Revenue 
Code (i.e., defined benefit plans and nonqualified plans). Second, the 
definitions of ``Insurance Entity'' and ``Fund Member'' are amended to 
clarify that an individual cannot qualify, and only entities organized 
as a corporation, partnership, or other legal entity are covered by the 
definitions.
    NSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \7\ and the rules thereunder 
because clarifying the types of funds which are eligible for processing 
on NSCC's Fund/Serv system will further facilitate the accurate 
clearance and settlement of Fund/Serv transactions.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

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

    NSCC does not believe that the proposed rule change would 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. NSCC will notify the Commission of any 
written comments received by NSCC.

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 \8\ and Rule 19b-4(f)(4) \9\ 
thereunder because the proposed rule effects a change in an existing 
service of NSCC that (i) does not adversely affect the safeguarding of 
securities or funds in the custody or control of the clearing agency or 
for which it is responsible and (ii) does not significantly affect the 
respective rights or obligations of the clearing agency or persons 
using the service. At any time within sixty days of the filing of such 
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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 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 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-NSCC-2006-07 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-NSCC-2006-07. 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

[[Page 52201]]

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 NSCC and on NSCC's 
Web site at http://www.nscc.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-NSCC-2006-07 and should be submitted on or before 
September 22, 2006.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
 [FR Doc. E6-14528 Filed 8-31-06; 8:45 am]
BILLING CODE 8010-01-P