Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Certain Administrative Provisions of the Rules of the Government Securities Division and the Mortgage-Backed Securities Division, 69153-69154 [E6-20210]

Download as PDF Federal Register / Vol. 71, No. 229 / Wednesday, November 29, 2006 / Notices For the Commission, by the Division of Market Regulation, pursuant to delegated authority.8 Nancy M. Morris, Secretary. [FR Doc. E6–20219 Filed 11–28–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54794; File No. SR–FICC– 2006–18] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Certain Administrative Provisions of the Rules of the Government Securities Division and the MortgageBacked Securities Division November 20, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on October 12, 2006, the Fixed Income Clearing Corporation (‘‘FICC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) and on October 17, 2006, amended2 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 3 and Rule 19b–4(f)(3) 4 thereunder so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the rule change from interested parties. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The purpose of the rule change is to amend certain administrative provisions of the rules of FICC’s Government Securities Division (‘‘GSD’’) and Mortgage-Backed Securities Division (‘‘MBSD’’) to create more uniformity between FICC’s rules and the rules of FICC’s affiliate, the National Securities Clearing Corporation (‘‘NSCC’’). FICC is also making technical amendments to the administrative rules of FICC. 8 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 The amendment deleted a proposal that would have enabled FICC to rely on signatures transmitted, recorded, or stored by any electronic, optical, or similar means because a substantively similar rule already exists. 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 17 CFR 240.19b–4(f)(3). jlentini on PROD1PC65 with NOTICES 1 15 VerDate Aug<31>2005 15:37 Nov 28, 2006 Jkt 211001 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.5 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change FICC believes that amending certain administrative provisions of the rules of GSD and MBSD to create more uniformity between the rules of FICC and NSCC will provide more clarity to the members of FICC and NSCC. (i) Proposed GSD Rule Changes Rule 28—Forms Currently, GSD Rule 28 states that the delivery of forms of lists, notices, and other documents may be delivered by the use of any media, including magnetic tape, discs, or cards. FICC proposes to remove language referring to ‘‘magnetic tapes, discs, or cards’’ since these modes of delivery are outdated. Rule 29—Release of Clearing Data FICC proposes to amend GSD Rule 29 so that it is structured in a way that is similar to the analogous NSCC rule. Therefore, FICC proposes to delete numbered section subheadings and identify provisions going forward with the letters (a) through (g). FICC proposes to delete Section 7 of Rule 29 since FICC no longer follows this procedure. Rule 30—Lists To Be Maintained FICC proposes to amend GSD Rule 30 so that it includes Sponsored Members as a category of members for which FICC will maintain a list. Rule 31—Distribution Facilities Since FICC does not currently maintain distribution facilities, FICC proposes to amend GSD Rule 31 by including language indicating that ‘‘if deemed necessary’’ FICC will ‘‘establish’’ distribution facilities. FICC does not propose to alter the guidelines listed in the rule. 5 The Commission has modified the text of the summaries prepared by FICC. PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 69153 (ii) Proposed MBSD Rule Changes Clearing Rule 8 and EPN Rule 8— Arbitration of Disputes FICC proposes to delete MBSD Clearing Rule 8 of Article V and MBSD EPN Rule 8 of Article X since the provisions are outdated and have never been invoked by MBSD. Clearing Rule 10 and EPN Rule 10— Amendment of Rules FICC proposes to revise MBSD Clearing Rule 10 of Article V and MBSD EPN Rule 10 of Article X with language similar to that of the GSD and NSCC rules.6 The rule will continue to provide for prompt notification to all participants, limited purpose participants, EPN users, and registered clearing agencies of proposals made to change, revise, add, or repeal any MBSD Rule. Participants may submit comments to FICC upon receipt of the notification. Clearing Rule 12 and EPN Rule 12— Waivers, Etc. FICC proposes to modify MBSD Clearing Rule 12 of Article V and MBSD EPN Rule 12 of Article X with language similar to that of the GSD and NSCC rules.7 Pursuant to the proposed rule, the Board of Directors or any FICC officer having a rank of Vice President or higher may waive or suspend times fixed by the rules or regulations issued by FICC whenever waiver or suspension is deemed necessary or expedient in his or her judgment. The waiver or suspension shall not continue in effect for more than sixty calendar-days unless approved by the Board of Directors within the sixty calendar-day period. (iii) MBSD Administrative Rule Additions FICC proposes to add certain provisions to MBSD Clearing Rules and MBSD EPN Rules that are currently contained in the rules of the GSD. FICC believes the additions will provide guidance to MBSD members on administrative matters. Clearing Rule 19 and EPN Rule 19— Forms FICC proposes to add a rule identical to GSD Rule 28 to MBSD Clearing Rules Article V and MBSD EPN Rules Article X allowing FICC to use forms of lists, notices, or other documents in connection with any transactions. Information required to be delivered to FICC may be delivered by the use of any media, to be prescribed by FICC from time to time. 6 GSD 7 GSD E:\FR\FM\29NON1.SGM Rule 33 and NSCC Rule 33. Rule 22 and NSCC Rule 42. 29NON1 69154 Federal Register / Vol. 71, No. 229 / Wednesday, November 29, 2006 / Notices EPN Rule 18—Release of Processing Data FICC proposes to add a rule similar to GSD Rule 29 to MBSD EPN Rules Article X governing the release of EPN processing data upon written request or pursuant to a written agreement between an EPN user and FICC. Clearing Rule 20 and EPN Rule 19— Lists to be Maintained FICC proposes to add a rule similar to GSD Rule 30 to MBSD Clearing Rules Article V and MBSD EPN Rules Article X providing that MBSD will maintain lists of all participants, limited purpose participants, and EPN users to be made available upon request. Clearing Rule 9 and EPN Rule 9— Captions FICC proposes to add a rule regarding captions to MBSD Clearing Rules Article V and MSBD EPN Rules Article X to clarify that captions to rules are for information and guidance only and should not be considered by participants as substantive language. Clearing Rule 21 and EPN Rule 20— Distribution Facilities FICC proposes to add a rule similar to GSD Rule 31 to MBSD Clearing Rules Article V and MBSD EPN Rules Article X regarding distribution facilities. Though MBSD does not currently maintain a distribution facility, the rule will provide guidance if a facility is established in the future. FICC believes the proposed rule change is consistent with Section 17A of the Act,8 as amended because it is concerned solely with the administration of FICC and as such does not affect the safeguarding of securities or funds 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. jlentini on PROD1PC65 with NOTICES (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. 8 15 U.S.C. 78q–1. VerDate Aug<31>2005 15:37 Nov 28, 2006 Jkt 211001 III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing proposed rule change has become effective upon filing pursuant to Section 19(b)(3)(A)(iii) of the Act 9 and Rule 19b–4(f)(3)10 thereunder because the rule effects a change in an existing service of FICC that does not adversely affect the safeguarding of securities or funds in the custody or control of FICC or for which it is responsible. At any time within sixty days of the filing of the proposed rule change,11 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–FICC–2006–18 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–2006–18. 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 9 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(3). 11 For purposes of calculating the sixty-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 the date on which the last amendment to the proposed rule change was filed with the Commission. 15 U.S.C. 78s(b)(3)(C). 10 17 PO 00000 Frm 00058 Fmt 4703 Sfmt 4703 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 filings 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/commondocs/rule.filings/ rule.filing.06–18.amendment1.pdf. 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–2006–18 and should be submitted on or before December 20, 2006. For the Commission by the Division of Market Regulation, pursuant to delegated authority.12 Nancy M. Morris, Secretary. [FR Doc. E6–20210 Filed 11–28–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54809; File No. SR–ISE– 2006–63] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes November 21, 2006. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on November 1, 2006, the International Securities Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) 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 by the ISE. The ISE has designated this proposal as one establishing or changing a due, fee, or other charge imposed by the ISE under section 19(b)(3)(A)(ii) of the Act,3 and 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 E:\FR\FM\29NON1.SGM 29NON1

Agencies

[Federal Register Volume 71, Number 229 (Wednesday, November 29, 2006)]
[Notices]
[Pages 69153-69154]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20210]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54794; File No. SR-FICC-2006-18]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend Certain Administrative Provisions of the Rules of the Government 
Securities Division and the Mortgage-Backed Securities Division

November 20, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on October 12, 2006, the 
Fixed Income Clearing Corporation (``FICC'') filed with the Securities 
and Exchange Commission (``Commission'') and on October 17, 2006, 
amended\2\ 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 
\3\ and Rule 19b-4(f)(3) \4\ thereunder so that the proposal was 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the rule change from interested 
parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ The amendment deleted a proposal that would have enabled 
FICC to rely on signatures transmitted, recorded, or stored by any 
electronic, optical, or similar means because a substantively 
similar rule already exists.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the rule change is to amend certain administrative 
provisions of the rules of FICC's Government Securities Division 
(``GSD'') and Mortgage-Backed Securities Division (``MBSD'') to create 
more uniformity between FICC's rules and the rules of FICC's affiliate, 
the National Securities Clearing Corporation (``NSCC''). FICC is also 
making technical amendments to the administrative rules of FICC.

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.\5\
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    \5\ 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 believes that amending certain administrative provisions of 
the rules of GSD and MBSD to create more uniformity between the rules 
of FICC and NSCC will provide more clarity to the members of FICC and 
NSCC.
(i) Proposed GSD Rule Changes
Rule 28--Forms
    Currently, GSD Rule 28 states that the delivery of forms of lists, 
notices, and other documents may be delivered by the use of any media, 
including magnetic tape, discs, or cards. FICC proposes to remove 
language referring to ``magnetic tapes, discs, or cards'' since these 
modes of delivery are outdated.
Rule 29--Release of Clearing Data
    FICC proposes to amend GSD Rule 29 so that it is structured in a 
way that is similar to the analogous NSCC rule. Therefore, FICC 
proposes to delete numbered section subheadings and identify provisions 
going forward with the letters (a) through (g). FICC proposes to delete 
Section 7 of Rule 29 since FICC no longer follows this procedure.
Rule 30--Lists To Be Maintained
    FICC proposes to amend GSD Rule 30 so that it includes Sponsored 
Members as a category of members for which FICC will maintain a list.
Rule 31--Distribution Facilities
    Since FICC does not currently maintain distribution facilities, 
FICC proposes to amend GSD Rule 31 by including language indicating 
that ``if deemed necessary'' FICC will ``establish'' distribution 
facilities. FICC does not propose to alter the guidelines listed in the 
rule.
(ii) Proposed MBSD Rule Changes
Clearing Rule 8 and EPN Rule 8--Arbitration of Disputes
    FICC proposes to delete MBSD Clearing Rule 8 of Article V and MBSD 
EPN Rule 8 of Article X since the provisions are outdated and have 
never been invoked by MBSD.
Clearing Rule 10 and EPN Rule 10--Amendment of Rules
    FICC proposes to revise MBSD Clearing Rule 10 of Article V and MBSD 
EPN Rule 10 of Article X with language similar to that of the GSD and 
NSCC rules.\6\ The rule will continue to provide for prompt 
notification to all participants, limited purpose participants, EPN 
users, and registered clearing agencies of proposals made to change, 
revise, add, or repeal any MBSD Rule. Participants may submit comments 
to FICC upon receipt of the notification.
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    \6\ GSD Rule 33 and NSCC Rule 33.
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Clearing Rule 12 and EPN Rule 12--Waivers, Etc.
    FICC proposes to modify MBSD Clearing Rule 12 of Article V and MBSD 
EPN Rule 12 of Article X with language similar to that of the GSD and 
NSCC rules.\7\ Pursuant to the proposed rule, the Board of Directors or 
any FICC officer having a rank of Vice President or higher may waive or 
suspend times fixed by the rules or regulations issued by FICC whenever 
waiver or suspension is deemed necessary or expedient in his or her 
judgment. The waiver or suspension shall not continue in effect for 
more than sixty calendar-days unless approved by the Board of Directors 
within the sixty calendar-day period.
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    \7\ GSD Rule 22 and NSCC Rule 42.
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(iii) MBSD Administrative Rule Additions
    FICC proposes to add certain provisions to MBSD Clearing Rules and 
MBSD EPN Rules that are currently contained in the rules of the GSD. 
FICC believes the additions will provide guidance to MBSD members on 
administrative matters.
Clearing Rule 19 and EPN Rule 19--Forms
    FICC proposes to add a rule identical to GSD Rule 28 to MBSD 
Clearing Rules Article V and MBSD EPN Rules Article X allowing FICC to 
use forms of lists, notices, or other documents in connection with any 
transactions. Information required to be delivered to FICC may be 
delivered by the use of any media, to be prescribed by FICC from time 
to time.

[[Page 69154]]

EPN Rule 18--Release of Processing Data
    FICC proposes to add a rule similar to GSD Rule 29 to MBSD EPN 
Rules Article X governing the release of EPN processing data upon 
written request or pursuant to a written agreement between an EPN user 
and FICC.
Clearing Rule 20 and EPN Rule 19--Lists to be Maintained
    FICC proposes to add a rule similar to GSD Rule 30 to MBSD Clearing 
Rules Article V and MBSD EPN Rules Article X providing that MBSD will 
maintain lists of all participants, limited purpose participants, and 
EPN users to be made available upon request.
Clearing Rule 9 and EPN Rule 9--Captions
    FICC proposes to add a rule regarding captions to MBSD Clearing 
Rules Article V and MSBD EPN Rules Article X to clarify that captions 
to rules are for information and guidance only and should not be 
considered by participants as substantive language.
Clearing Rule 21 and EPN Rule 20--Distribution Facilities
    FICC proposes to add a rule similar to GSD Rule 31 to MBSD Clearing 
Rules Article V and MBSD EPN Rules Article X regarding distribution 
facilities. Though MBSD does not currently maintain a distribution 
facility, the rule will provide guidance if a facility is established 
in the future.
    FICC believes the proposed rule change is consistent with Section 
17A of the Act,\8\ as amended because it is concerned solely with the 
administration of FICC and as such does not affect the safeguarding of 
securities or funds in the custody or control of FICC or for which it 
is responsible.
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    \8\ 15 U.S.C. 78q-1.
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(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 proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-
4(f)(3)\10\ thereunder because the rule effects a change in an existing 
service of FICC that does not adversely affect the safeguarding of 
securities or funds in the custody or control of FICC or for which it 
is responsible. At any time within sixty days of the filing of the 
proposed rule change,\11\ the Commission may summarily abrogate such 
rule change if it appears to the Commission that such action is 
necessary or appropriate in the public interest, for the protection of 
investors, or otherwise in furtherance of the purposes of the Act.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(3).
    \11\ For purposes of calculating the sixty-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 the date on which the last amendment to the 
proposed rule change was filed with the Commission. 15 U.S.C. 
78s(b)(3)(C).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change 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-2006-18 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-2006-18. 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 filings 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/commondocs/rule.filings/
rule.filing.06-18.amendment1.pdf. 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-2006-18 and should be submitted on or before 
December 20, 2006.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\12\
Nancy M. Morris,
Secretary.
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    \12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E6-20210 Filed 11-28-06; 8:45 am]
BILLING CODE 8011-01-P