Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify Deposit Service Procedures To Help Assure Compliance With OFAC Regulations, 75282-75283 [E6-21277]

Download as PDF 75282 Federal Register / Vol. 71, No. 240 / Thursday, December 14, 2006 / Notices following e-mail address: FR0610@ustr.eop.gov with the subject line: ‘‘Korea Interim Environmental Review.’’ Documents should be submitted as a Word Perfect, MSWord, or text (.TXT) file. Persons who make submissions by e-mail should not provide separate cover letters; information that might appear in a cover letter should be included in the submission itself. To the extent possible, any attachments to the submission should be included in the same file as the submission itself, and not as separate files. If submission by email is impossible, comments should be made by facsimile to (202) 395–6143, attention: Gloria Blue. Written comments will be placed in a file open to public inspection in the USTR Reading Room at 1724 F Street, NW., Washington DC. An appointment to review the file may be made by calling (202) 395–6186. The Reading Room is open to the public from 10–12 a.m. and from 1–4 p.m., Monday through Friday. General information concerning the Office of the United States Trade Representative may be obtained by accessing its Internet Web site (www.ustr.gov). Carmen Suro-Bredie, Chair, Trade Policy Staff Committee. [FR Doc. E6–21316 Filed 12–13–06; 8:45 am] BILLING CODE 3190–W7–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meeting FEDERAL REGISTER CITATION OF PREVIOUS ANNOUNCEMENT: 71 FR 71597, December 11, 2006. STATUS: Open Meeting. PLACE: 100 F Street, NE., Auditorium, LL–002, Washington, DC. DATE AND TIME OF PREVIOUSLY ANNOUNCED MEETING: Wednesday, December 13, 2006. Additional Item. The following matter will also be considered as part of Item 3 during the 10 a.m. Open Meeting scheduled for Wednesday, December 13, 2006: The Commission will consider whether to propose changes to its requirements for attestation reports. Commissioner Casey, as duty officer, determined 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 rwilkins on PROD1PC63 with NOTICES CHANGE IN THE MEETING: VerDate Aug<31>2005 17:54 Dec 13, 2006 Jkt 211000 any, matters have been added, deleted or postponed, please contact the Office of the Secretary at (202) 551–5400. Dated: December 11, 2006. Nancy M. Morris, Secretary. [FR Doc. 06–9722 Filed 12–12–06; 10:53 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54902; File No. SR–DTC– 2006–13] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Clarify Deposit Service Procedures To Help Assure Compliance With OFAC Regulations December 8, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on August 11, 2006, The Depository Trust Company (‘‘DTC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared primarily by DTC. DTC filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 2 and Rule 19b–4(f)(1) 3 thereunder 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 persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change clarifies recent changes to DTC’s Deposit Service procedures. 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, 1 15 U.S.C. 78s(b)(1). U.S.C. 78s(b)(3)(A). 3 17 CFR 240.19b–4(f)(1). 2 15 PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 and C below, of the most significant aspects of such statements.4 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The proposed rule change clarifies recent changes that DTC made to its Deposit Service procedures.5 As part of those changes, DTC requires participants to certify to DTC that the participant screened the name of the party in whose name a deposited security certificate is registered against the U.S. Department of the Treasury’s Office of Foreign Assets and Control (‘‘OFAC’’) list of Specially Designated Nationals and against OFAC’s regulations and that there were no matches identified by such comparison. The purpose of this rule filing is to clarify that if the certificate has been assigned by the party in whose name the security was registered, participants only need to certify that they have screened the name of the most recent assignee and that there were no matches identified.6 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 because it should improve DTC’s ability to comply with applicable laws thereby reducing regulatory risks and associated costs to DTC and its participants. 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 been solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b–4(f)(1) 9 4 The Commission has modified the text of the summaries prepared by FICC. 5 Securities Exchange Act Release No. 54120 (Jul. 10, 2006); 71 FR 40562 (Jul. 17, 2006). 6 DTC Important Notice #B9959–06 (Jul. 18, 2006). 7 15 U.S.C. 78q–1. 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(1). E:\FR\FM\14DEN1.SGM 14DEN1 Federal Register / Vol. 71, No. 240 / Thursday, December 14, 2006 / Notices thereunder because it constitutes a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. identifying information from submissions. You should submit only information that you wish to make available publicly. All submission should refer to File No. SR–DTC–2006– 13 and should be submitted on or before January 4, 2007. 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: BILLING CODE 8011–01–P rwilkins on PROD1PC63 with NOTICES 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–DTC–2006–13 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File No. SR–DTC–2006–13. 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 DTC’s principal office and on DTC’s Web site at http://www.dtc.org/impNtc/ mor/index.html. All comments received will be posted without change; the Commission does not edit personal VerDate Aug<31>2005 17:54 Dec 13, 2006 Jkt 211000 For the Commission by the Division of Market Regulation, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–21277 Filed 12–13–06; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54879; File No. SR–FICC– 2006–12] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Order Approving a Proposed Rule Change Relating to Financial Responsibility, Operational Capability, Insolvency, and Ceasing To Act December 6, 2006. On June 15, 2006 the Fixed Income Clearing Corporation (‘‘FICC’’) filed a proposed rule change with the Securities and Exchange Commission (‘‘Commission’’) pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and on September 22, 2006, amended the proposed rule change. Notice of the proposal was published in the Federal Register on October 4, 2006.2 No comment letters were received. For the reasons discussed below, the Commission is approving the proposed rule change. I. Description The rule change will amend FICC’s Government Securities Division’s (‘‘GSD’’) and Mortgage Backed Securities Division’s (‘‘MBSD’’) rules relating to members’ or applicants’ financial responsibility, operational capability, and insolvency and to FICC ceasing to act for members. A. Cease To Act and Insolvency Rules FICC will amend GSD’s rules governing when FICC will cease to act for a member in a noninsolvency situation, GSD Rule 21, and in an insolvency situation, GSD Rule 22. Such changes will conform GSD’s rules to the rules of FICC’s clearing agency affiliate, the National Securities Clearing Corporation (‘‘NSCC’’). 10 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 Securities Exchange Act Release No. 54570 (Oct. 4, 2006), 71 FR 60591. 1 15 PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 75283 GSD Rule 21, which addressed noninsolvency situations, will be renamed ‘‘Restriction on Access to Services’’ and will be similar to NSCC Rule 46. While revised Rule 21 is triggered by essentially the same criteria that are contained in the old GSD rule,3 the revised rule expands the remedies that FICC could exercise beyond only ‘‘ceasing to act’’ or ‘‘ceasing to accept data’’ on behalf of the member. Specifically, FICC, after notifying and providing an opportunity to request a hearing to the member, will be able to suspend, prohibit, or limit a member’s access to one or more of FICC’s services. GSD Rule 22, which addresses insolvency situations, remains essentially in its old form except that its close-out provisions are amended and are being moved to new Rule 22A. New Rule 22A sets forth the procedures that FICC will follow when it ceases to act for a member pursuant to either Rule 21 or Rule 22. Under new Rule 22A, FICC will initiate the closeout process with respect to a member for which it has ceased to act for any reason permitted by its rules.4 In addition, the term Cut-Off Time for noninsolvency situations will be added to Rule 22A.5 Although this term is similar to the Time of Insolvency term used in old Rule 22, a key difference between the terms is that members will be notified in advance of the Cut-Off Time. The rule change also makes technical changes to conform existing references to Rules 21 and 22 throughout GSD’s rules to these revisions.6 B. General Continuance Standards FICC will add new language to Section 5 of GSD Rule 3 and a new Section 18, Article III, Rule 1 to MBSD’s rules, which will be similar to NSCC Rule 15, that enables FICC when it deems necessary or advisable to assure itself of a member’s or an applicant’s financial responsibility and operational capability. To assure itself, FICC may, but is not limited to: restrict or modify the member’s use of any or all of FICC’s services; require additional reporting by the member of its financial or operational condition; increase the member’s clearing fund collateral; alter the proportions of cash, eligible netting 3 Such triggers include the member failing to perform its obligations to FICC and FICC’s determination that the member is in or is approaching financial difficulty. 4 Currently, the close-out process applies only when FICC deems a member insolvent. 5 As used in Rule 22A, the term Cut Off Time means the time that is specified in advance by FICC in a notice to members to be the time when FICC is deemed to have ceased to act for a member. 6 Technical, conforming changes are being made to Rules 1, 3A, 4, 6A, 14 and new Rule 22A. E:\FR\FM\14DEN1.SGM 14DEN1

Agencies

[Federal Register Volume 71, Number 240 (Thursday, December 14, 2006)]
[Notices]
[Pages 75282-75283]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21277]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54902; File No. SR-DTC-2006-13]


Self-Regulatory Organizations; The Depository Trust Company; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Clarify Deposit Service Procedures To Help Assure Compliance With 
OFAC Regulations

December 8, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 11, 2006, The 
Depository Trust Company (``DTC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
primarily by DTC. DTC filed the proposed rule change pursuant to 
Section 19(b)(3)(A) of the Act \2\ and Rule 19b-4(f)(1) \3\ thereunder 
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 persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A).
    \3\ 17 CFR 240.19b-4(f)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change clarifies recent changes to DTC's Deposit 
Service procedures.

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

    In its filing with the Commission, DTC included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. DTC has prepared summaries, set forth in Sections A, B, 
and C below, of the most significant aspects of such statements.\4\
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    \4\ The Commission has modified the text of the summaries 
prepared by FICC.
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A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The proposed rule change clarifies recent changes that DTC made to 
its Deposit Service procedures.\5\ As part of those changes, DTC 
requires participants to certify to DTC that the participant screened 
the name of the party in whose name a deposited security certificate is 
registered against the U.S. Department of the Treasury's Office of 
Foreign Assets and Control (``OFAC'') list of Specially Designated 
Nationals and against OFAC's regulations and that there were no matches 
identified by such comparison. The purpose of this rule filing is to 
clarify that if the certificate has been assigned by the party in whose 
name the security was registered, participants only need to certify 
that they have screened the name of the most recent assignee and that 
there were no matches identified.\6\
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    \5\ Securities Exchange Act Release No. 54120 (Jul. 10, 2006); 
71 FR 40562 (Jul. 17, 2006).
    \6\ DTC Important Notice B9959-06 (Jul. 18, 2006).
---------------------------------------------------------------------------

    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 because it should improve DTC's ability to 
comply with applicable laws thereby reducing regulatory risks and 
associated costs to DTC and its participants.
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    \7\ 15 U.S.C. 78q-1.
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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 been 
solicited or received.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(1) \9\

[[Page 75283]]

thereunder because it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule. At any time within 60 days of the 
filing of the proposed rule change, the Commission may summarily 
abrogate such rule change if it appears to the Commission that such 
action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

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 No. SR-DTC-2006-13 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.
All submissions should refer to File No. SR-DTC-2006-13. 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 DTC's principal office and on DTC's Web site 
at http://www.dtc.org/impNtc/mor/index.html. 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 submission 
should refer to File No. SR-DTC-2006-13 and should be submitted on or 
before January 4, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21277 Filed 12-13-06; 8:45 am]
BILLING CODE 8011-01-P