Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing of a Proposed Rule Change Relating to the Wind-Down of a Participant, 76397-76398 [E6-21683]
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Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices
change that are filed with the
Commission, and all written
communications relating to the
proposed rule changes 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 will also 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 No.
SR–CHX–2006–36 and should be
submitted on or before January 10, 2007.
a situation where a participant notifies
DTC that it intends to wind down its
activities and DTC determines in its
discretion that it must take special
action in order to protect itself and its
participants.3
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21655 Filed 12–19–06; 8:45 am]
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The proposed rule change would
allow DTC to make a determination that
a participant is a wind-down participant
and would set forth the conditions DTC
using its discretion could place on a
wind-down participant and the actions
DTC using its discretion could take with
respect to a wind-down participant to
protect itself and its participants. Such
actions would include restricting or
modifying the wind-down participant’s
use of any or all of DTC’s services and
requiring the wind-down participant to
post increased participants fund
deposits. DTC would retain all of its
other rights set forth in its rules and
participant agreements, including the
right to cease to act for the wind-down
participant.
DTC believes that the proposed rule
will ensure that it has the needed
flexibility to appropriately manage the
risks presented by an entity in crisis that
remains a participant of DTC. This is
particularly important to preserve
orderly settlement in the marketplace
and to minimize the risk of loss to DTC
and its participants. The proposed rule
summarizes in a single rule DTC’s rights
and the actions it may take in such a
situation. These rights and actions are
either permitted elsewhere in DTC’s
rules or are permitted pursuant to DTC’s
emergency authority. By summarizing
them in a single rule, however, the
proposed rule change should provide
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54927; File No. SR-DTC–
2006–07]
Self-Regulatory Organizations; The
Depository Trust Company; Notice of
Filing of a Proposed Rule Change
Relating to the Wind-Down of a
Participant
December 13, 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
March 28, 2006, The Depository Trust
Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) and on September 29,
2006, amended the proposed rule
change as described in Items I, II, and
III below, which items have been
prepared primarily by DTC. 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 would add
a new Rule 32, Wind Down of a
Participant,2 to DTC’s Rules to address
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 The text of DTC’s proposed Rule 32 can be
found DTC’s Web site at https://www.dtc.org.
1 15
VerDate Aug<31>2005
20:03 Dec 19, 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,
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
3 Similar proposed rule changes have been filed
by the Fixed Income Clearing Corporation [File No.
SR–FICC–2006–05] and the National Securities
Clearing Corporation [File No. SR–NSCC–2006–05].
4 The Commission has modified parts of these
statements.
PO 00000
Frm 00127
Fmt 4703
Sfmt 4703
76397
clarity and a clear legal basis for DTC’s
rights or actions taken with respect to a
wind-down participant. DTC also
believes that the proposed rule is
designed to minimize the need for rule
waivers.
DTC believes that the proposed rule
change is consistent with the
requirements of the Act and the rules
and regulations thereunder because it is
designed to enhance DTC’s rules
regarding DTC’s rights and the actions it
may take with respect to a wind-down
of a participant that presents risk to
DTC.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
DTC does not believe that the
proposed rule change would 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
Within 35 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
As the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve the proposed
rule change or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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–2006–07 on the
subject line.
E:\FR\FM\20DEN1.SGM
20DEN1
76398
Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices
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–2006–07. 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 (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
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–2006–07 and should
be submitted on or before January 10,
2007.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.5
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–21683 Filed 12–19–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54929; File No. SR–FICC–
2006–05]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of a Proposed Rule Change
Relating to the Wind-Down of a
Participant
December 13, 2006.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 28, 2006, Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) and on September 28,
2006, amended 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 proposed rule change would add
a new Rule 21A, Wind-Down of a
Netting Member, to the Rules of FICC’s
Government Securities Division
(‘‘GSD’’) and a new Rule 2A, WindDown of a Participant, to the Rules of
FICC’s Mortgage-Backed Securities
Division (‘‘MBSD’’) 2 to address a
situation where a participant notifies
FICC that it intends to wind down its
activities and FICC determines, in its
discretion, that it must take special
action in order to protect itself and its
participants.3
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.4
1 15
U.S.C. 78s(b)(1).
text of FICC’s GSD’s proposed Rule 21A and
MBSD’s Rule 2A can be found on FICC’s Web site
at https://www.ficc.com.
3 Similar proposed rule changes have been filed
by The Depository Trust Company [File No. SR–
DTC–2006–07] and the National Securities Clearing
Corporation [File No. SR–NSCC–2006–05].
4 The Commission has modified parts of these
statements.
sroberts on PROD1PC70 with NOTICES
2 The
5 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
20:03 Dec 19, 2006
Jkt 211001
PO 00000
Frm 00128
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The proposed rule would allow FICC
to determine that a participant is a
wind-down member or wind-down
participant and would set forth the
conditions FICC using its discretion
could place on a wind-down participant
and the actions FICC using its discretion
could take with respect to a wind-down
participant to protect itself and its
members or participants. Such actions
would include restricting or modifying
the wind-down member or participant’s
use of any or all of FICC’s services and
requiring the wind-down member or
participant to post increased clearing
fund deposits. FICC would retain all of
its other rights set forth in its rules and
participant agreements, including the
right to declare the wind-down
participant insolvent, if applicable, and
to cease to act for the participant.
FICC believes that the proposed rule
would ensure that it has the needed
flexibility to appropriately manage the
risks presented by an entity in crisis that
remains a participant of FICC. This is
particularly important to preserve
orderly settlement in the marketplace
and to minimize the risk of loss to FICC
and its members and participants. The
proposed rule summarizes in a single
rule FICC’s rights and the actions it may
take in such a situation. These rights
and actions are either permitted
elsewhere in FICC’s rules or are
permitted pursuant to FICC’s emergency
authority. By summarizing them in a
single rule, however, the proposed rule
change is designed to provide clarity
and a clear legal basis for FICC’s rights
or actions taken with respect to a winddown member or participant. FICC also
believes that the proposed rule is
designed to minimize the need for rule
waivers.
FICC believes that the proposed rule
change is consistent with the
requirements of the Act and the rules
and regulations thereunder because it
will enhance the rules of both divisions
of FICC regarding actions that FICC may
take with respect to a wind-down of a
participant that presents risk to FICC.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FICC does not believe that the
proposed rule change would have any
impact or impose any burden on
competition.
E:\FR\FM\20DEN1.SGM
20DEN1
]]>Agencies
[Federal Register Volume 71, Number 244 (Wednesday, December 20, 2006)]
[Notices]
[Pages 76397-76398]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21683]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54927; File No. SR-DTC-2006-07]
Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of a Proposed Rule Change Relating to the Wind-Down of
a Participant
December 13, 2006.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 28, 2006, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') and on September 29, 2006, amended
the proposed rule change as described in Items I, II, and III below,
which items have been prepared primarily by DTC. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------
\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 proposed rule change would add a new Rule 32, Wind Down of a
Participant,\2\ to DTC's Rules to address a situation where a
participant notifies DTC that it intends to wind down its activities
and DTC determines in its discretion that it must take special action
in order to protect itself and its participants.\3\
---------------------------------------------------------------------------
\2\ The text of DTC's proposed Rule 32 can be found DTC's Web
site at https://www.dtc.org.
\3\ Similar proposed rule changes have been filed by the Fixed
Income Clearing Corporation [File No. SR-FICC-2006-05] and the
National Securities Clearing Corporation [File No. SR-NSCC-2006-05].
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\4\ The Commission has modified parts of these statements.
---------------------------------------------------------------------------
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposed rule change would allow DTC to make a determination
that a participant is a wind-down participant and would set forth the
conditions DTC using its discretion could place on a wind-down
participant and the actions DTC using its discretion could take with
respect to a wind-down participant to protect itself and its
participants. Such actions would include restricting or modifying the
wind-down participant's use of any or all of DTC's services and
requiring the wind-down participant to post increased participants fund
deposits. DTC would retain all of its other rights set forth in its
rules and participant agreements, including the right to cease to act
for the wind-down participant.
DTC believes that the proposed rule will ensure that it has the
needed flexibility to appropriately manage the risks presented by an
entity in crisis that remains a participant of DTC. This is
particularly important to preserve orderly settlement in the
marketplace and to minimize the risk of loss to DTC and its
participants. The proposed rule summarizes in a single rule DTC's
rights and the actions it may take in such a situation. These rights
and actions are either permitted elsewhere in DTC's rules or are
permitted pursuant to DTC's emergency authority. By summarizing them in
a single rule, however, the proposed rule change should provide clarity
and a clear legal basis for DTC's rights or actions taken with respect
to a wind-down participant. DTC also believes that the proposed rule is
designed to minimize the need for rule waivers.
DTC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
because it is designed to enhance DTC's rules regarding DTC's rights
and the actions it may take with respect to a wind-down of a
participant that presents risk to DTC.
B. Self-Regulatory Organization's Statement on Burden on Competition
DTC does not believe that the proposed rule change would 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
Within 35 days of the date of publication of this notice in the
Federal Register or within such longer period (i) As the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve the proposed rule change or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
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-2006-07 on the subject line.
[[Page 76398]]
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-2006-07. 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 (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 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-2006-07 and should be submitted on or before January
10, 2007.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-21683 Filed 12-19-06; 8:45 am]
BILLING CODE 8011-01-P
