Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of a Proposed Rule Change Relating to the Wind-Down of a Member, 76414-76415 [E6-21706]

Download as PDF 76414 Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices the Federal Register. As described more fully above, the changes to NASD Rules 4362D(a), 4632D(g), and 6130D(f) adopt provisions for the NASD/BSE TRF that are identical to or substantially the same as existing NASD rules. The Commission believes that these changes do not raise new regulatory issues and will help to provide consistency in the NASD’s trade reporting rules. Amendment No. 1 also revises the rules of the NASD/NSX TRF and the NASD/ BSE TRF to include an express prohibition on the aggregating of trades for purposes of trade reporting to these facilities. The Commission believes that this change strengthens and clarifies the rules governing the NASD/NSX TRF and the NASD/BSE TRF by providing an express prohibition on the aggregating of trades for purposes of trade reporting to the facilities. Finally, Amendment No. 1 includes technical changes that correct errors in the text of the NASD/ BSE TRF’s rules, thereby helping to ensure the accuracy of the NASD’s rules. For these reasons, the Commission finds that it is consistent with Sections 15A(b)(6) and 19(b) of the Act to approve the proposed rule change as amended by Amendment No. 1 on an accelerated basis. V. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the proposed rule change as amended by Amendment No. 1, including whether it is consistent with the Act. Comments may be submitted by any of the following methods: 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 the filing also will be available for inspection and copying at the principal office of the Exchange. 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–NASD–2006–115 and should be submitted on or before January 10, 2007. VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,55 that the proposed rule change (SR–NASD–2006– 115), as amended, is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.56 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–21660 Filed 12–19–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION sroberts on PROD1PC70 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 Number SR–NASD–2006–115 on the subject line. [Release No. 34–54928; File No. SR–NSCC– 2006–05] 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–NASD–2006–115. 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 December 13, 2006. VerDate Aug<31>2005 20:03 Dec 19, 2006 Jkt 211001 Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of a Proposed Rule Change Relating to the Wind-Down of a Member Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on March 28, 2006, National Securities Clearing Corporation (‘‘NSCC’’) 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 NSCC. The Commission is publishing this notice to solicit comments on the 55 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 56 17 PO 00000 Frm 00144 Fmt 4703 Sfmt 4703 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 42, Wind-Down of a Member, Fund Member, or Insurance Carrier Member,2 to NSCC’s Rules to address a situation where a member notifies NSCC that it intends to wind down its activities and NSCC 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, NSCC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. NSCC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of such statements.4 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The proposed rule would allow NSCC to determine that a member is a winddown member and would set forth the conditions NSCC using its discretion could place on a wind-down member and the actions NSCC using its discretion could take with respect to a wind-down member to protect itself and its members. Such actions would include restricting or modifying the wind-down member’s use of any or all of NSCC’s services and requiring the wind-down member to post increased clearing fund deposits. NSCC would retain all of its other rights set forth in its rules and membership agreements, including the right to declare the winddown member insolvent, if applicable, and to cease to act for the member. NSCC 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 member of NSCC. This is 2 The text of NSCC’s proposed Rule 42 can be found on NSCC’s Web site at http://www.nscc.com. 3 Similar proposed rule changes have been filed by The Depository Trust Company [File No. SR– DTC–2006–07] and the Fixed Income Clearing Corporation [File No. SR–FICC–2006–05]. 4 The Commission has modified parts of these statements. E:\FR\FM\20DEN1.SGM 20DEN1 Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices particularly important to preserve orderly settlement in the marketplace and to minimize the risk of loss to NSCC and its members. The proposed rule summarizes in a single rule NSCC’s rights and the actions it may take in such a situation. These rights and actions are either permitted elsewhere in NSCC’s rules or are permitted pursuant to NSCC’s emergency authority. By summarizing them in a single rule, however, the proposed rule change should provide clarity and a clear legal basis for NSCC’s rights or actions taken with respect to a winddown member. NSCC also believes that the proposed rule is designed to minimize the need for rule waivers. NSCC believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder because it will enhance NSCC’s rules regarding actions that NSCC may take with respect to a wind-down of a member that presents risk to NSCC. B. Self-Regulatory Organization’s Statement on Burden on Competition NSCC 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. NSCC will notify the Commission of any written comments received by NSCC. sroberts on PROD1PC70 with NOTICES 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. VerDate Aug<31>2005 20:03 Dec 19, 2006 Jkt 211001 Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml) or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NSCC–2006–05 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. 76415 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54921; File No. SR–NSCC– 2006–14] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Clarifying and Technical Changes to its Insurance Processing Service December 12, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on November 2, 2006, the National All submissions should refer to File Securities Clearing Corporation Number SR–NSCC–2006–05. This file (‘‘NSCC’’) filed with the Securities and number should be included on the Exchange Commission (‘‘Commission’’) subject line if e-mail is used. To help the the proposed rule change described in Commission process and review your Items I, II, and III below, which items comments more efficiently, please use have been prepared primarily by NSCC. only one method. The Commission will NSCC filed the proposed rule change post all comments on the Commission’s pursuant to Section 19(b)(3)(A)(iii) of Internet Web site (http://www.sec.gov/ the Act2 and Rule 19b–4(f)(4) rules/sro.shtml). Copies of the thereunder3 so that the proposal was submission, all subsequent effective upon filing with the amendments, all written statements Commission. The Commission is with respect to the proposed rule publishing this notice to solicit change that are filed with the comments on the proposed rule change Commission, and all written from interested parties. communications relating to the I. Self-Regulatory Organization’s proposed rule change between the Commission and any person, other than Statement of the Terms of Substance of those that may be withheld from the the Proposed Rule Change public in accordance with the The purpose of the proposed rule provisions of 5 U.S.C. 552, will be change is to make clarifying and available for inspection and copying in technical changes to NSCC’s Rule 57 the Commission’s Public Reference regarding NSCC’s Insurance Processing Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will Service (‘‘IPS’’). be available for inspection and copying II. Self-Regulatory Organization’s at the principal office of NSCC and on Statement of the Purpose of, and NSCC’s Web site at http:// Statutory Basis for, the Proposed Rule www.nscc.com. All comments received Change will be posted without change; the Commission does not edit personal In its filing with the Commission, identifying information from NSCC included statements concerning submissions. You should submit only the purpose of and basis for the information that you wish to make proposed rule change and discussed any available publicly. All submissions comments it received on the proposed should refer to File Number SR–NSCC– rule change. The text of these statements 2006–05 and should be submitted on or may be examined at the places specified before January 10, 2007. in Item IV below. NSCC has prepared For the Commission by the Division of summaries, set forth in sections (A), (B), Market Regulation, pursuant to delegated and (C) below, of the most significant authority.5 aspects of these statements.4 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–21706 Filed 12–19–06; 8:45 am] BILLING CODE 8011–01–P 5 17 PO 00000 CFR 200.30–3(a)(12). Frm 00145 Fmt 4703 Sfmt 4703 1 15 U.S.C. 78s(b)(1). U.S.C. 78s(b)(3)(A)(iii). 3 17 CFR 240.19b–4(f)(4). 4 The Commission has modified the text of the summaries prepared by NSCC. 2 15 E:\FR\FM\20DEN1.SGM 20DEN1

Agencies

[Federal Register Volume 71, Number 244 (Wednesday, December 20, 2006)]
[Notices]
[Pages 76414-76415]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21706]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54928; File No. SR-NSCC-2006-05]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of a Proposed Rule Change Relating to the 
Wind-Down of a Member

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, National 
Securities Clearing Corporation (``NSCC'') 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 NSCC. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would add a new Rule 42, Wind-Down of a 
Member, Fund Member, or Insurance Carrier Member,\2\ to NSCC's Rules to 
address a situation where a member notifies NSCC that it intends to 
wind down its activities and NSCC determines in its discretion that it 
must take special action in order to protect itself and its 
participants.\3\
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    \2\ The text of NSCC's proposed Rule 42 can be found on NSCC's 
Web site at http://www.nscc.com.
    \3\ Similar proposed rule changes have been filed by The 
Depository Trust Company [File No. SR-DTC-2006-07] and the Fixed 
Income Clearing Corporation [File No. SR-FICC-2006-05].
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II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NSCC included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. NSCC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of such 
statements.\4\
---------------------------------------------------------------------------

    \4\ The Commission has modified parts of these statements.
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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 would allow NSCC to determine that a member is a 
wind-down member and would set forth the conditions NSCC using its 
discretion could place on a wind-down member and the actions NSCC using 
its discretion could take with respect to a wind-down member to protect 
itself and its members. Such actions would include restricting or 
modifying the wind-down member's use of any or all of NSCC's services 
and requiring the wind-down member to post increased clearing fund 
deposits. NSCC would retain all of its other rights set forth in its 
rules and membership agreements, including the right to declare the 
wind-down member insolvent, if applicable, and to cease to act for the 
member.
    NSCC 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 member of NSCC. This is

[[Page 76415]]

particularly important to preserve orderly settlement in the 
marketplace and to minimize the risk of loss to NSCC and its members. 
The proposed rule summarizes in a single rule NSCC's rights and the 
actions it may take in such a situation. These rights and actions are 
either permitted elsewhere in NSCC's rules or are permitted pursuant to 
NSCC's emergency authority. By summarizing them in a single rule, 
however, the proposed rule change should provide clarity and a clear 
legal basis for NSCC's rights or actions taken with respect to a wind-
down member. NSCC also believes that the proposed rule is designed to 
minimize the need for rule waivers.
    NSCC believes that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
because it will enhance NSCC's rules regarding actions that NSCC may 
take with respect to a wind-down of a member that presents risk to 
NSCC.

B. Self-Regulatory Organization's Statement on Burden on Competition

    NSCC 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. NSCC will notify the Commission of any 
written comments received by NSCC.

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

    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 (http://
www.sec.gov/rules/sro.shtml) or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NSCC-2006-05 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

    All submissions should refer to File Number SR-NSCC-2006-05. This 
file number should be included on the subject line if e-mail is used. 
To help the Commission process and review your comments more 
efficiently, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the submission, all subsequent amendments, 
all written statements with respect to the proposed rule change that 
are filed with the Commission, and all written communications relating 
to the proposed rule change between the Commission and any person, 
other than those that may be withheld from the public in accordance 
with the provisions of 5 U.S.C. 552, will be available for inspection 
and copying in the Commission's Public Reference Section, 100 F Street, 
NE., Washington, DC 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of NSCC and on 
NSCC's Web site at http://www.nscc.com. All comments received will be 
posted without change; the Commission does not edit personal 
identifying information from submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NSCC-2006-05 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).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E6-21706 Filed 12-19-06; 8:45 am]
BILLING CODE 8011-01-P