Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Order Granting Accelerated Approval of a Proposed Rule Change To Amend Its Certificate of Organization To Provide for the Issuance of an Additional 500,000 Shares of DTC Series A Preferred Stock, 68662-68664 [E6-19961]
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68662
Federal Register / Vol. 71, No. 227 / Monday, November 27, 2006 / Notices
filed rate effective November 1, 2006.
Specifically, from October 23 through
October 31, 2006, the outbound fee for
NMS Linkage orders routed to Nasdaq
(in issues other than exchange-traded
funds) would decrease from $.0030/
share to $.0007/share. On November 1,
2006, the effective date of Nasdaq’s fee
increase, the CHX outbound NMS
Linkage routing fee for such issues
would return to $.0030/share. This
change is not applicable to orders for
exchange-traded funds.
Trade Processing Fees: New Section
E.7 of the NTM Fee Schedule is not a
new provision; this provision, which
provides for a Trade Processing Fee of
$.0015/share, up to $100 per side of the
trade, is merely relocated from former
Section H.2. New Section H.2.
establishes a Clearing Support Activity
Fee, which will be assessed by the CHX
beginning January 1, 2007. This fee of
$.02 per ticket, capped at $8,000 per
month, will apply to firms that average,
within a month, at least 2,500 tickets
per day. In establishing this fee, the
CHX is attempting to defray some of the
expenses associated with clearing
support services that it provides to
certain participant firms. Prior to
submission of the NTM Fee Schedule,
these expenses were largely offset by a
portion of the Specialist Fixed Fee,
which was eliminated in the NTM Fee
Schedule. Although this fee is a new
fee, the actual aggregate amount
assessed by the CHX will decrease, due
to elimination of the Specialist Fixed
Fee. Accordingly, the CHX believes that
it is appropriate to institute the new
Clearing Support Activity Fee.
2. Statutory Basis
The CHX believes that the proposed
rule change is consistent with Section
6(b)(4) of the Act 12 in that it provides
for the equitable allocation of reasonable
dues, fees and other charges among its
members.13
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change establishes or changes a member
due, fee or other charge imposed by the
Exchange, it has become effective
pursuant to Section 19(B)(3)(A) of the
Act 14 and subparagraph (f)(2) of Rule
19b–4 thereunder.15 At any time within
60 days of the filing of such proposed
rule change, the Commission may
summarily abrogate such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.16
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 rulecomments@sec.gov. Please include File
No. SR–CHX–2006–31 on the subject
line.
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.
All submissions should refer to File
Number SR–CHX–2006–31. 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
sroberts on PROD1PC70 with NOTICES
14 15
12 15
U.S.C. 78f(b)(4).
13 Email from Kathleen Boege, Vice President and
Associate General Counsel, CHX, to Joseph Morra,
Special Counsel, Division of Market Regulation
(‘‘Division’’), Commission, and Sara Gillis,
Attorney, Division, Commission, dated November
16, 2006.
VerDate Aug<31>2005
16:58 Nov 24, 2006
Jkt 211001
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
16 For purposes of calculating the 60-day period
within which the Commission may summarily
abrogate the proposed rule change under Section
19(b)(3)(C) of the Act, the Commission considers
the period to commence on November 15, 2006, the
date on which the CHX filed Amendment No. 1. See
15 U.S.C. 78s(b)(3)(C).
15 17
PO 00000
Frm 00134
Fmt 4703
Sfmt 4703
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 CHX. 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–CHX–2006–31 and should
be submitted on or before December 18,
2006.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Nancy M. Morris,
Secretary.
[FR Doc. E6–19981 Filed 11–24–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54775; File No. SR–DTC–
2006–14]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing and Order Granting Accelerated
Approval of a Proposed Rule Change
To Amend Its Certificate of
Organization To Provide for the
Issuance of an Additional 500,000
Shares of DTC Series A Preferred
Stock
November 17, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
October 6, 2006, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) and on November 14,
2006, amended, the proposed rule
change described in Items I, II, and III
below, which items have been prepared
primarily by DTC. The Commission is
publishing this notice and order to
solicit comments from interested
17 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
E:\FR\FM\27NON1.SGM
27NON1
Federal Register / Vol. 71, No. 227 / Monday, November 27, 2006 / Notices
persons and to grant accelerated
approval of the proposal.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purposed rule change relates to
changes to DTC’s Certificate of
Organization to provide for the issuance
of an additional 500,000 shares of DTC
Series A Preferred Stock.
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 these statements.2
sroberts on PROD1PC70 with NOTICES
In 1999, DTC’s Certificate of
Organization was amended to provide
for the issuance of up to $150 million
of Series A Preferred Stock as thereafter
authorized by the Board of Directors.3 In
February 2000, the Board decided to
increase the capital of DTC by issuing
750,000 shares of variable rate,
noncumulative, nonvoting Series A
Preferred Stock at the par value of $100
per share and to reduce the mandatory
deposits to the Participants Fund by a
corresponding amount.4 DTC
participants are required to purchase
and own shares of the Series A Preferred
Stock in proportion to their use of DTC
services. DTC treats the Series A
Preferred Stock held by participants
substantially the same as the mandatory
cash deposits made by participants to
the Participants Fund for purposes of
collateralizing securities transactions,
limiting net debit positions,
implementing default procedures, and
allocating unrecovered losses.
2 The Commission has modified the text of the
summaries prepared by DTC.
3 The amended Certificate of Organization was
the subject of a DTC rule filing previously approved
by the Commission. Securities Exchange Act No.
41529 (June 15, 1999), 64 FR 33333 (June 22, 1999)
[File No. SR–DTC–99–08].
4 This restructuring of DTC’s Participants Fund
was the subject of a rule filing previously approved
by the Commission. Securities Exchange Act No.
43197 (August 23, 2000), 65 FR 52459 (August 29,
2000) [File No. SR-DTC–00–02].
16:58 Nov 24, 2006
Jkt 211001
(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.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
VerDate Aug<31>2005
In order to further increase capital,5
DTC is proposing to amend its
Certificate of Organization to provide for
the issuance of an additional 500,000
shares of Series A Preferred Stock at the
par value of $100 per share and to
further reduce mandatory cash deposits
by a corresponding amount.6 The
proceeds of the reductions of the
mandatory cash deposits will be used to
pay the purchase price of the shares,
and all reductions and payments will be
settled through the facilities of DTC
with no action required on the part of
any participant.
DTC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act7
and the rules and regulations
thereunder applicable to DTC because
the proposed rule change will not affect
the safeguarding of securities and funds
in DTC’s custody or control for which
it is responsible.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments relating to the
proposed rule change have not yet been
solicited or received. DTC will notify
the Commission of any written
comments received by DTC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Section 17A(b)(3)(F) 8 of the Act
requires that the rules of a clearing
agency be designed to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible. For the reasons set forth
below, the Commission finds that DTC’s
5 DTC, as a depository institution, is subject to
risk-based capital guidelines issued by the Board of
Governors of the Federal Reserve. To be considered
‘‘well capitalized’’ under these guidelines, DTC
must maintain a Tier I Leverage Ratio of at least 3%
and Tier I Risk Based Capital Ratio of at least 8%.
The issuance of the additional Series A Preferred
Stock will enable DTC to continue to meet these
requirements.
6 The issuance of an additional 500,000 shares
will increase the outstanding amount of Preferred
Stock to $125 million and will reduce the
mandatory cash portion of the Participants Fund
deposit to $475 million, maintaining the total
mandatory amount at $600 million.
7 15 U.S.C. 78q–1.
8 15 U.S.C. 78q–1(b)(3)(F).
PO 00000
Frm 00135
Fmt 4703
Sfmt 4703
68663
proposed rule change is consistent with
DTC’s obligations under the Act.
The Series A Preferred Stock will be
used in conjunction with and will have
the characteristics of required deposits
to the Participants Fund. The proposed
rule change enables DTC to increase its
capital base and maintain the same level
of assets for use in the event of a
participation default without imposing
any additional financial burden on its
participants and enables DTC to
continue to meet the risk-based capital
guidelines issued by the Board of
Governors of the Federal Reserve.
Therefore, the Commission finds that
the rule change is consistent with DTC’s
obligation to assure the safeguarding of
securities and funds which are in its
custody or control or for which it is
responsible.
The Commission finds good cause for
approving the proposed rule change
prior to the thirtieth day after the date
of publication of notice of filing because
approving the proposed rule change
prior to the thirtieth day after the date
of publication of notice of filing will
allow DTC to implement the proposed
rule change prior to the end of the year.
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 (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR-DTC–2006–14 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–2006–14. 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
E:\FR\FM\27NON1.SGM
27NON1
68664
Federal Register / Vol. 71, No. 227 / Monday, November 27, 2006 / Notices
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 https://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–2006–14 and should
be submitted on or before December 18,
2006.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.9
Nancy M. Morris,
Secretary.
[FR Doc. E6–19961 Filed 11–24–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54787; File No. SR–
FICC–2006–14]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of a Proposed Rule Change
Relating To Returning Excess Clearing
Fund Collateral
November 20, 2006.
sroberts on PROD1PC70 with NOTICES
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
September 22, 2006, the Fixed Income
Clearing Corporation (‘‘FICC’’) 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 FICC.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of this rule filing is to
amend FICC’s Government Securities
9 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Aug<31>2005
16:58 Nov 24, 2006
Jkt 211001
Division’s (‘‘GSD’’) rules to permit GSD
members to request the return of their
excess clearing fund collateral held on
deposit with FICC on a more frequent
basis than is currently allowed under
GSD’s rules.
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 such statements.2
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Currently, GSD members generally are
permitted to request the return of excess
clearing fund collateral once per
month.3 In addition, on any business
day, if a GSD member has an excess
clearing fund deposit in the amount of
$5 million or more, the member may
request the return of the excess deposit
provided, among other requirements,
that the member retain on deposit with
GSD the greater of at least 110 percent
of its calculated required clearing fund
deposit or $1 million more than its
calculated required clearing fund
deposit.
In an effort to harmonize GSD’s
process with respect to the return of
excess collateral with the processes of
other Depository Trust & Clearing
Corporation (‘‘DTCC’’) subsidiary
clearing agencies, FICC proposes to
change GSD’s rules to give GSD the
discretion to return excess clearing fund
more frequently whether or not the
excess reaches 110 percent of the
required clearing fund deposit or $5
million.4 Under the proposal, GSD
members would be able to request the
2 The Commission has modified the text of the
summaries prepared by FICC.
3 Excess clearing fund is the amount of collateral
held on deposit at GSD that is greater than a
member’s required clearing fund deposit as set forth
in GSD Rule 4 (Clearing Fund, Watch List and Loss
Allocation).
4 The rules of the National Securities Clearing
Corporation (‘‘NSCC’’) and FICC’s Mortgage Backed
Securities Division (‘‘MBSD’’) permit their
respective members to request (under normal
circumstances) the return of their excess clearing
fund more frequently than once per month.
Currently, NSCC’s and MBSD’s procedures allow
members to request the return of excess collateral
on a daily basis.
PO 00000
Frm 00136
Fmt 4703
Sfmt 4703
return of excess clearing fund on a daily
basis. GSD would retain the right,
however, to deny the return of some or
all of a member’s excess collateral in the
following instances: (i) If, the member
has an outstanding payment obligation
to FICC; (ii) if a member’s funds-only
settlement amounts or net settlement
positions over the upcoming 90 days
may reasonably be expected to be
materially different than those of the
preceding 90 days; (iii) if the member is
on the watch list; or (iv) when the return
of excess clearing fund will cause the
member to be in violation of another
GSD rule. In addition, excess clearing
fund would not be returned to a member
if doing so would reduce a member’s
cross-guaranty repayment deposit or
cross-margining repayment deposit to
the clearing fund below the required
amount.5
FICC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act
and the rules thereunder because by
enabling FICC members to request and
receive an earlier return of excess
clearing fund collateral held on deposit
at FICC while maintaining the GSD’s
ability to deny the return of excess
collateral in order to protect FICC from
undue risk, the proposed rule change
should not adversely affect FICC’s
ability to safeguard securities and funds
in its possession or control or for which
it is responsible and at the same time
should enhance member liquidity.
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
FICC has not solicited written
comments relating to the proposed rule
change. FICC will notify the
Commission of any written comments it
receives.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 days of the date of
publication of this notice in the Federal
5 Under GSD’s rules, a ‘‘cross-guaranty repayment
deposit’’ is a deposit to the clearing fund required
to be made by a cross-guaranty beneficiary member
pursuant to Rule 41, Section 4 of GSD’s rules. A
‘‘cross-margining repayment deposit’’ is a deposit to
the clearing fund required to be made by a crossmargining beneficiary participant pursuant to Rule
43, Section 6 of GSD’s rules.
E:\FR\FM\27NON1.SGM
27NON1
]]>Agencies
[Federal Register Volume 71, Number 227 (Monday, November 27, 2006)]
[Notices]
[Pages 68662-68664]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19961]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54775; File No. SR-DTC-2006-14]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and Order Granting Accelerated Approval of a Proposed
Rule Change To Amend Its Certificate of Organization To Provide for the
Issuance of an Additional 500,000 Shares of DTC Series A Preferred
Stock
November 17, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 6, 2006, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') and on November 14, 2006, amended,
the proposed rule change described in Items I, II, and III below, which
items have been prepared primarily by DTC. The Commission is publishing
this notice and order to solicit comments from interested
[[Page 68663]]
persons and to grant accelerated approval of the proposal.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purposed rule change relates to changes to DTC's Certificate of
Organization to provide for the issuance of an additional 500,000
shares of DTC Series A Preferred Stock.
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 these
statements.\2\
---------------------------------------------------------------------------
\2\ The Commission has modified the text of the summaries
prepared by DTC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In 1999, DTC's Certificate of Organization was amended to provide
for the issuance of up to $150 million of Series A Preferred Stock as
thereafter authorized by the Board of Directors.\3\ In February 2000,
the Board decided to increase the capital of DTC by issuing 750,000
shares of variable rate, noncumulative, nonvoting Series A Preferred
Stock at the par value of $100 per share and to reduce the mandatory
deposits to the Participants Fund by a corresponding amount.\4\ DTC
participants are required to purchase and own shares of the Series A
Preferred Stock in proportion to their use of DTC services. DTC treats
the Series A Preferred Stock held by participants substantially the
same as the mandatory cash deposits made by participants to the
Participants Fund for purposes of collateralizing securities
transactions, limiting net debit positions, implementing default
procedures, and allocating unrecovered losses.
---------------------------------------------------------------------------
\3\ The amended Certificate of Organization was the subject of a
DTC rule filing previously approved by the Commission. Securities
Exchange Act No. 41529 (June 15, 1999), 64 FR 33333 (June 22, 1999)
[File No. SR-DTC-99-08].
\4\ This restructuring of DTC's Participants Fund was the
subject of a rule filing previously approved by the Commission.
Securities Exchange Act No. 43197 (August 23, 2000), 65 FR 52459
(August 29, 2000) [File No. SR-DTC-00-02].
---------------------------------------------------------------------------
In order to further increase capital,\5\ DTC is proposing to amend
its Certificate of Organization to provide for the issuance of an
additional 500,000 shares of Series A Preferred Stock at the par value
of $100 per share and to further reduce mandatory cash deposits by a
corresponding amount.\6\ The proceeds of the reductions of the
mandatory cash deposits will be used to pay the purchase price of the
shares, and all reductions and payments will be settled through the
facilities of DTC with no action required on the part of any
participant.
---------------------------------------------------------------------------
\5\ DTC, as a depository institution, is subject to risk-based
capital guidelines issued by the Board of Governors of the Federal
Reserve. To be considered ``well capitalized'' under these
guidelines, DTC must maintain a Tier I Leverage Ratio of at least 3%
and Tier I Risk Based Capital Ratio of at least 8%. The issuance of
the additional Series A Preferred Stock will enable DTC to continue
to meet these requirements.
\6\ The issuance of an additional 500,000 shares will increase
the outstanding amount of Preferred Stock to $125 million and will
reduce the mandatory cash portion of the Participants Fund deposit
to $475 million, maintaining the total mandatory amount at $600
million.
---------------------------------------------------------------------------
DTC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act\7\ and the rules and regulations
thereunder applicable to DTC because the proposed rule change will not
affect the safeguarding of securities and funds in DTC's custody or
control for which it is responsible.
---------------------------------------------------------------------------
\7\ 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
Written comments relating to the proposed rule change have not yet
been solicited or received. DTC will notify the Commission of any
written comments received by DTC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Section 17A(b)(3)(F) \8\ of the Act requires that the rules of a
clearing agency be designed to assure the safeguarding of securities
and funds which are in the custody or control of the clearing agency or
for which it is responsible. For the reasons set forth below, the
Commission finds that DTC's proposed rule change is consistent with
DTC's obligations under the Act.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Series A Preferred Stock will be used in conjunction with and
will have the characteristics of required deposits to the Participants
Fund. The proposed rule change enables DTC to increase its capital base
and maintain the same level of assets for use in the event of a
participation default without imposing any additional financial burden
on its participants and enables DTC to continue to meet the risk-based
capital guidelines issued by the Board of Governors of the Federal
Reserve. Therefore, the Commission finds that the rule change is
consistent with DTC's obligation to assure the safeguarding of
securities and funds which are in its custody or control or for which
it is responsible.
The Commission finds good cause for approving the proposed rule
change prior to the thirtieth day after the date of publication of
notice of filing because approving the proposed rule change prior to
the thirtieth day after the date of publication of notice of filing
will allow DTC to implement the proposed rule change prior to the end
of the year.
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 (https://
www.sec.gov/rules/sro.shtml) or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-DTC-2006-14 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-2006-14. 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
[[Page 68664]]
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
https://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-2006-14 and should be submitted on or before December 18, 2006.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\9\
Nancy M. Morris,
Secretary.
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\9\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-19961 Filed 11-24-06; 8:45 am]
BILLING CODE 8011-01-P
