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]
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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.
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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 (https://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 (https://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 https://
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
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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
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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
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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
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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 (https://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 (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 NSCC and on
NSCC’s Web site at https://
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.’’
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]]>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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 39096 (September 19,
1997), 62 FR 50416 (September 25, 1997) [File No. SR-NSCC-96-21].
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\6\ Securities Exchange Act Release No. 47644 (April 7, 2003),
68 FR 17850 (April 11, 2003) [File No. SR-NSCC-2003-04].
---------------------------------------------------------------------------
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 (https://
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 (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 NSCC and on
NSCC's Web site at https://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
