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, 76415-76417 [E6-21717]

Download as PDF 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 76416 Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices sroberts on PROD1PC70 with NOTICES A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The purpose of the proposed rule change is to make clarifying and technical changes to Rule 57 of NSCC’s Rules regarding IPS. NSCC proposes to reformat Rule 57 for clarity. References to services or functionalities that are not currently offered would be deleted and to those that have changed since the rule was initially written would be revised accordingly. These changes are explained below. Reformatting of Rule 57 Rule 57 is being reorganized such that (i) Section 1 of the rule now consolidates all of the general provisions that will generally apply to all IPS services and (ii) each subsequent section (Sections 2 through 10) applies to a separate service offering within IPS. This differs from the format of the current rule in which some of the services are referenced in a list contained in Section 1 of the rule and certain other of the services are described in separate, individual sections of the rule. Section 1 Section 1 will contain all of the general provisions that apply to all services within IPS. Most of these general provisions are contained in Sections 1 and 2 of the current Rule 57 and with some exceptions are repeated in subsequent sections of the current rule with respect to specific services. The statement currently contained in Addendum D of NSCC’s Rules, which states that that NSCC does not guarantee money settlement of IPS transactions, is being restated in Subsection (l) of Section 1 of the rule. Repositioning the statement in the rule which governs the insurance services will help clarify to applicants and members that IPS is not a ‘‘guaranteed service.’’ The last two sentences of current Subsection (d) of Section 2 of Rule 57, which state that NSCC would adjust IPS data on the instruction of a participant, are being deleted. Because NSCC acts as a pass-through of IPS data, it would not generally be expected to make adjustments on such data. Provisions contained in Sections 1 and 2, which are specific to a particular service offering within IPS, of the current Rule 57 are being deleted and moved to subsequent sections that are dedicated to that particular service offering. For example, the material regarding application information is being moved to Section 3, ‘‘Applications and Premiums.’’ Section 2, ‘‘Commissions and Compensation’’ Section 2 will set forth the provisions specific to the VerDate Aug<31>2005 20:03 Dec 19, 2006 Jkt 211001 commission service offered in IPS, which provisions are currently in Section 3. The service, currently named ‘‘Commissions and Charge Backs,’’ is being renamed ‘‘Commissions and Compensation’’ to reflect that the service currently accommodates other types of compensation payable between insurance carriers and distributors such as bonus amounts. General provisions that are not specific to the Commissions and Charge Backs service and that apply generally to all IPS services are being deleted from this section and placed in Section 1 as discussed above. Sections 3(d) and (e) of the current rule, which state that NSCC may offer members the ability to cancel commission transactions, are being deleted. At the time the commission service was originally proposed, NSCC anticipated that it would develop such an enhancement.5 The enhancement has not been developed and there are no plans to develop it at this time. The provisions in the current rule regarding the date on which commission transactions may settle are being rewritten to use terminology consistent with analogous provisions elsewhere in the rules. Section 3, ‘‘Applications and Premiums’’ Section 3 will set forth the provisions that are specific to the applications and premiums services in IPS, which provisions are currently in Sections 2 and 4. The provisions of the current Sections 2 and 4 that are of general applicability to all IPS services are deleted from these sections and placed in Section 1 as discussed above. Section 2 (e) of the current rule, which states that NSCC will reject application data if it has four or more errors, is being deleted. The precise data requirements of the various services change from time to time as new fields are added or deleted or made mandatory or optional, and the data requirements therefore are more typically contained in the NSCC user guides and other documentation rather than being set forth in the text of the NSCC Rules. Section 4, ‘‘Licensing and Appointments’’ Section 4 will set forth the provisions specific to the licensing and appointments services within IPS. In the current rule, the reference to the licensing and appointments service is contained in Sections 1 and 4 in the list of types of data that may be transmitted through IPS. Section 5, ‘‘Positions and Valuations’’ Section 5 will set forth the provisions specific to the positions and valuations 5 Securities Exchange Act Release No. 39096 (September 19, 1997), 62 FR 50416 (September 25, 1997) [File No. SR–NSCC–96–21]. PO 00000 Frm 00146 Fmt 4703 Sfmt 4703 services within IPS. Section 5 of the current rule, which regards a product repository service which may be offered by NSCC, is being deleted. NSCC determined not to offer this service after the proposed rule change for the service had been filed and approved.6 NSCC has no plans to offer such a service at this time and would file a proposed rule change should it determine to do so after this provision is deleted from the rules. Section 6, ‘‘ACATS/Transfers’’ Section 6 will set forth the provisions specific to the ACATS transfer service within IPS and is reworded slightly differently from the current Section 6 in order to use terminology that is consistent with analogous terminology elsewhere in NSCC’s rules. Section 7, ‘‘Asset Pricing’’ Section 6 sets forth the provisions specific to the asset pricing service within IPS. Section 8, ‘‘Financial Activity Reporting’’ Section 7 will set forth the provisions specific to the financial activity reporting service within IPS, which service is referenced in Section 1 of the current rule in the list of types of data that may be transmitted through IPS. Section 9,‘‘In Force Transactions’’ Section 9 will set forth the provisions specific to the In Force Transactions services within IPS. Section 10, ‘‘InsurExpress’’ Section 10 will set forth the provisions specific to the InsurExpress service within IPS. This service was the subject of a proposed rule change regarding the insurance service that was proposed to be offered under the name ‘‘Portal.’’7 The proposed rule change is consistent with the requirements of Section 17A of the Act and the rules and regulations thereunder because in clarifying NSCC’s Rules to more accurately and clearly set forth the nature of the insurance processing services already offered by NSCC, the proposed rule change effects a change in an existing service of NSCC that (i) does not adversely affect the safeguarding of securities or funds in the custody or control of NSCC and (ii) does not significantly affect the respective rights or obligations of NSCC or those members using the service. B. Self-Regulatory Organization’s Statement on Burden on Competition NSCC does not believe that the proposed rule change will have any 6 Securities Exchange Act Release No. 47644 (April 7, 2003), 68 FR 17850 (April 11, 2003) [File No. SR–NSCC–2003–04]. 7 Securities Exchange Act Release No. 48896 (December 9, 2003), 68 FR 70553 (December 18, 2003) [File No. SR–NSCC–2003–18]. E:\FR\FM\20DEN1.SGM 20DEN1 Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Notices 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 The foregoing rule change has become effective upon filing pursuant to Section 19(b)(3)(A)(iii) of the Act8 and Rule 19b–4(f)(4) thereunder9 because the proposed rule effects a change in an existing service of NSCC that (i) Does not adversely affect the safeguarding of securities or funds in the custody or control of NSCC and (ii) does not significantly affect the respective rights or obligations of NSCC or those members using the service. At any time within sixty days of the filing of such 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. 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: 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–NSCC–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-NSCC–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 8 15 9 17 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(4). VerDate Aug<31>2005 20:03 Dec 19, 2006 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– 2006–14 and should be submitted on or before January 10, 2007. For the Commission by the Division of Market Regulation, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–21717 Filed 12–19–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54935; File No. SR–OCC– 2006–10] Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Accelerated Approval of a Proposed Rule Change Relating to Cash-Settled Foreign Currency Options December 13, 2006. I. Introduction On June 8, 2006, The Options Clearing Corporation (‘‘OCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) proposed rule change SR–OCC–2006–10 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’).1 On October 26, 2006, OCC amended the proposed rule change. Notice of the 10 17 1 15 Jkt 211001 PO 00000 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). Frm 00147 Fmt 4703 Sfmt 4703 76417 proposal was published in the Federal Register on November 17, 2006.2 No comment letters were received. For the reasons discussed below, the Commission is granting approval of the proposed rule change. II. Description The proposed rule change will enable OCC to accommodate a request from the Philadelphia Stock Exchange, Inc. (‘‘Phlx’’) that OCC clear and settle cashsettled foreign currency options (‘‘CashSettled FCOs’’). While OCC’s By-Laws and Rules currently provide for the clearance and settlement of Cash-Settled FCOs, changes to OCC’s By-Laws are needed in connection with the CashSettled FCOs that are to be traded by Phlx.3 The first change is to reflect the different expiration date of the CashSettled FCOs as compared with the expiration date provided for in OCC’s By-Laws. The definition of ‘‘expiration date’’ in Article XXII, Section 1 of OCC’s By-Laws provides that Cash-Settled FCOs generally expire on the Monday specified by the relevant exchange at or before trading begins. To accommodate the Cash-Settled FCOs proposed to be traded by Phlx, the definition will be amended to provide for an expiration date on the Saturday following the third Friday of the expiration month, which is the same as the expiration date for equity and index options. OCC is also providing for expirations on such other dates as an exchange may determine, which is consistent with the definition of ‘‘expiration date’’ applicable to index options. OCC is also amending Article VI, Section 22 of its By-Laws to make clear that Cash-Settled FCOs will not clear through OCC’s International Clearing System.4 OCC amended the proposed rule change on October 26, 2006, to amend Article XXII, Section 4 of OCC’s ByLaws to conform the provisions relating to unavailability or inaccuracy of the spot price for Cash-Settled FCOs to the comparable provisions of Article XVII of OCC’s By-Laws relating to the unavailability or inaccuracy of the current index value or other value or price used to determine the exercise settlement amount for index options. 2 Securities Exchange Act Release No. 54721, (November 8, 2006), 71 FR 67004. 3 For a description of the Phlx proposed rule change, see Securities Exchange Act Release No. 54652 (October 26, 2006) 71 FR 64597 (November 2, 2006) [File No. SR-Phlx-2006–34]. Currently, there are no cash-settled FCOs traded at any options exhange. 4 Interpretation .02 of Article VI, Section 22 of OCC’s By-Laws currently provides, ‘‘All classes of foreign currency options and cross-rate foreign currency options are cleared through ICS.’’ E:\FR\FM\20DEN1.SGM 20DEN1

Agencies

[Federal Register Volume 71, Number 244 (Wednesday, December 20, 2006)]
[Notices]
[Pages 76415-76417]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21717]


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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 Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change described in Items I, II, and III below, which items have been 
prepared primarily by NSCC. NSCC filed the proposed rule change 
pursuant to Section 19(b)(3)(A)(iii) of the Act\2\ and Rule 19b-4(f)(4) 
thereunder\3\ 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 parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to make clarifying and 
technical changes to NSCC's Rule 57 regarding NSCC's Insurance 
Processing Service (``IPS'').

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 these 
statements.\4\
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    \4\ The Commission has modified the text of the summaries 
prepared by NSCC.

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[[Page 76416]]

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

    The purpose of the proposed rule change is to make clarifying and 
technical changes to Rule 57 of NSCC's Rules regarding IPS. NSCC 
proposes to reformat Rule 57 for clarity. References to services or 
functionalities that are not currently offered would be deleted and to 
those that have changed since the rule was initially written would be 
revised accordingly. These changes are explained below.
    Reformatting of Rule 57 Rule 57 is being reorganized such that (i) 
Section 1 of the rule now consolidates all of the general provisions 
that will generally apply to all IPS services and (ii) each subsequent 
section (Sections 2 through 10) applies to a separate service offering 
within IPS. This differs from the format of the current rule in which 
some of the services are referenced in a list contained in Section 1 of 
the rule and certain other of the services are described in separate, 
individual sections of the rule.
    Section 1 Section 1 will contain all of the general provisions that 
apply to all services within IPS. Most of these general provisions are 
contained in Sections 1 and 2 of the current Rule 57 and with some 
exceptions are repeated in subsequent sections of the current rule with 
respect to specific services.
    The statement currently contained in Addendum D of NSCC's Rules, 
which states that that NSCC does not guarantee money settlement of IPS 
transactions, is being restated in Subsection (l) of Section 1 of the 
rule. Repositioning the statement in the rule which governs the 
insurance services will help clarify to applicants and members that IPS 
is not a ``guaranteed service.''
    The last two sentences of current Subsection (d) of Section 2 of 
Rule 57, which state that NSCC would adjust IPS data on the instruction 
of a participant, are being deleted. Because NSCC acts as a pass-
through of IPS data, it would not generally be expected to make 
adjustments on such data.
    Provisions contained in Sections 1 and 2, which are specific to a 
particular service offering within IPS, of the current Rule 57 are 
being deleted and moved to subsequent sections that are dedicated to 
that particular service offering. For example, the material regarding 
application information is being moved to Section 3, ``Applications and 
Premiums.''
    Section 2, ``Commissions and Compensation'' Section 2 will set 
forth the provisions specific to the commission service offered in IPS, 
which provisions are currently in Section 3. The service, currently 
named ``Commissions and Charge Backs,'' is being renamed ``Commissions 
and Compensation'' to reflect that the service currently accommodates 
other types of compensation payable between insurance carriers and 
distributors such as bonus amounts. General provisions that are not 
specific to the Commissions and Charge Backs service and that apply 
generally to all IPS services are being deleted from this section and 
placed in Section 1 as discussed above.
    Sections 3(d) and (e) of the current rule, which state that NSCC 
may offer members the ability to cancel commission transactions, are 
being deleted. At the time the commission service was originally 
proposed, NSCC anticipated that it would develop such an 
enhancement.\5\ The enhancement has not been developed and there are no 
plans to develop it at this time.
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    \5\ Securities Exchange Act Release No. 39096 (September 19, 
1997), 62 FR 50416 (September 25, 1997) [File No. SR-NSCC-96-21].
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    The provisions in the current rule regarding the date on which 
commission transactions may settle are being rewritten to use 
terminology consistent with analogous provisions elsewhere in the 
rules.
    Section 3, ``Applications and Premiums'' Section 3 will set forth 
the provisions that are specific to the applications and premiums 
services in IPS, which provisions are currently in Sections 2 and 4. 
The provisions of the current Sections 2 and 4 that are of general 
applicability to all IPS services are deleted from these sections and 
placed in Section 1 as discussed above.
    Section 2 (e) of the current rule, which states that NSCC will 
reject application data if it has four or more errors, is being 
deleted. The precise data requirements of the various services change 
from time to time as new fields are added or deleted or made mandatory 
or optional, and the data requirements therefore are more typically 
contained in the NSCC user guides and other documentation rather than 
being set forth in the text of the NSCC Rules.
    Section 4, ``Licensing and Appointments'' Section 4 will set forth 
the provisions specific to the licensing and appointments services 
within IPS. In the current rule, the reference to the licensing and 
appointments service is contained in Sections 1 and 4 in the list of 
types of data that may be transmitted through IPS.
    Section 5, ``Positions and Valuations'' Section 5 will set forth 
the provisions specific to the positions and valuations services within 
IPS. Section 5 of the current rule, which regards a product repository 
service which may be offered by NSCC, is being deleted. NSCC determined 
not to offer this service after the proposed rule change for the 
service had been filed and approved.\6\ NSCC has no plans to offer such 
a service at this time and would file a proposed rule change should it 
determine to do so after this provision is deleted from the rules.
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    \6\ Securities Exchange Act Release No. 47644 (April 7, 2003), 
68 FR 17850 (April 11, 2003) [File No. SR-NSCC-2003-04].
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    Section 6, ``ACATS/Transfers'' Section 6 will set forth the 
provisions specific to the ACATS transfer service within IPS and is 
reworded slightly differently from the current Section 6 in order to 
use terminology that is consistent with analogous terminology elsewhere 
in NSCC's rules.
    Section 7, ``Asset Pricing'' Section 6 sets forth the provisions 
specific to the asset pricing service within IPS.
    Section 8, ``Financial Activity Reporting'' Section 7 will set 
forth the provisions specific to the financial activity reporting 
service within IPS, which service is referenced in Section 1 of the 
current rule in the list of types of data that may be transmitted 
through IPS.
    Section 9,``In Force Transactions'' Section 9 will set forth the 
provisions specific to the In Force Transactions services within IPS.
    Section 10, ``InsurExpress'' Section 10 will set forth the 
provisions specific to the InsurExpress service within IPS. This 
service was the subject of a proposed rule change regarding the 
insurance service that was proposed to be offered under the name 
``Portal.''\7\
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    \7\ Securities Exchange Act Release No. 48896 (December 9, 
2003), 68 FR 70553 (December 18, 2003) [File No. SR-NSCC-2003-18].
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    The proposed rule change is consistent with the requirements of 
Section 17A of the Act and the rules and regulations thereunder because 
in clarifying NSCC's Rules to more accurately and clearly set forth the 
nature of the insurance processing services already offered by NSCC, 
the proposed rule change effects a change in an existing service of 
NSCC that (i) does not adversely affect the safeguarding of securities 
or funds in the custody or control of NSCC and (ii) does not 
significantly affect the respective rights or obligations of NSCC or 
those members using the service.

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

    NSCC does not believe that the proposed rule change will have any

[[Page 76417]]

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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(iii) of the Act\8\ and Rule 19b-4(f)(4) 
thereunder\9\ because the proposed rule effects a change in an existing 
service of NSCC that (i) Does not adversely affect the safeguarding of 
securities or funds in the custody or control of NSCC and (ii) does not 
significantly affect the respective rights or obligations of NSCC or 
those members using the service. At any time within sixty days of the 
filing of such 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.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(4).
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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-NSCC-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-NSCC-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 (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-2006-14 and should be submitted on 
or before January 10, 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. E6-21717 Filed 12-19-06; 8:45 am]
BILLING CODE 8011-01-P