Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Harmonizing Administrative Provisions With Affiliated Clearing Agencies, 77844-77845 [E6-22084]

Download as PDF 77844 Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices administering the service, among other things. B. Self-Regulatory Organization’s Statement on Burden on Competition Nasdaq does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. As a general matter, the Commission has long held the view that ‘‘competition and innovation are essential to the health of the securities markets. Indeed, competition is one of the hallmarks of the national market system.’’ 7 The Commission has also stated ‘‘that the notion of competition is inextricably tied with the notion of economic efficiency, and the Act seeks to encourage market behavior that promotes such efficiency, lower costs, and better service in the interest of investors and the general public.’’ 8 The Commission goes on to state its belief ‘‘that the appropriate analysis to determine a proposal’s competitive impact is to weigh the proposal’s overall benefits and costs to competition based on the particular facts involved, such as examining whether the proposal would promote economically efficient execution of securities and fair competition between and among exchange markets and other market centers, as well as fair competition between the participants of a particular market.’’ 9 The Nasdaq Custom Data Feeds service is designed to increase the efficiency of executions by enabling vendors to provide market data in the manner they deem most cost efficient. Vendors will only utilize the service if they conclude that it is economically beneficial to them and to their users. There is significant competition for the provision of market data to brokerdealers and other market data consumers, as well as competition for the orders that generate the data. Nasdaq fully expects its competitors to quickly copy this innovative new service as they have copied other Nasdaq data products in the past. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received from Members, Participants or Others jlentini on PROD1PC65 with NOTICES Written comments were neither solicited nor received. 7 Securities Exchange Act Release No. 43863 (January 19, 2001), 66 FR 8020 (January 26, 2001). 8 Securities Exchange Act Release No. 54155 (July 20, 2006), 71 FR 41291 at 41298. 9 Id. VerDate Aug<31>2005 20:43 Dec 26, 2006 Jkt 211001 III. 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: For the Commission, by the Division of Market Regulation, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–22087 Filed 12–26–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–NASDAQ–2006–056 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. [Release No. 34–54958; File No. SR–NSCC– 2006–13] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Harmonizing Administrative Provisions With Affiliated Clearing Agencies December 18, 2006. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on November 3, 2006, the National Securities Clearing Corporation All submissions should refer to File (‘‘NSCC’’) filed with the Securities and Number SR–NASDAQ–2006–056. This Exchange Commission (‘‘Commission’’) file number should be included on the subject line if e-mail is used. To help the the proposed rule change as described in Items I, II, and III below, which Items Commission process and review your have been prepared primarily by NSCC. comments more efficiently, please use 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 the Act 2 and Rule 19b-4(f)(4) 3 Internet Web site (http://www.sec.gov/ thereunder so that the proposal was rules/sro.shtml). Copies of the effective upon filing with the submission, all subsequent Commission. The Commission is amendments, all written statements publishing this notice to solicit with respect to the proposed rule comments on the proposed rule change change that are filed with the from interested persons. Commission, and all written I. Self-Regulatory Organization’s communications relating to the Statement of the Terms of Substance of proposed rule change between the Commission and any person, other than the Proposed Rule Change those that may be withheld from the The purpose of this filing is to public in accordance with the harmonize various administrative provisions of 5 U.S.C. 552, will be aspects of NSCC’s rules with the rules of its clearing agency affiliates, the available for inspection and copying in Fixed Income Clearing Corporation the Commission’s Public Reference Room. Copies of such filing also will be (‘‘FICC’’) and The Depository Trust Company (‘‘DTC’’). available for inspection and copying at the principal office of Nasdaq. II. Self-Regulatory Organization’s All comments received will be posted Statement of the Purpose of, and Statutory Basis for, the Proposed Rule without change; the Commission does Change not edit personal identifying information from submissions. You In its filing with the Commission, should submit only information that NSCC included statements concerning you wish to make available publicly. All the purpose of and basis for the submissions should refer to File proposed rule change and discussed any Number SR–NASDAQ–2006–056 and comments it received on the proposed should be submitted on or before rule change. The text of these statements January 17, 2007. may be examined at the places specified 1 15 U.S.C. 78s(b)(1). U.S.C. 78s(b)(3)(A)(iii). 3 17 CFR 240.19b-4(f)(4). 2 15 10 17 PO 00000 CFR 200.30–3(a)(12). Frm 00128 Fmt 4703 Sfmt 4703 E:\FR\FM\27DEN1.SGM 27DEN1 Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Notices 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 1. OFAC Status and Securities Eligibility NSCC’s Rule 3 sets forth criteria relating to the eligibility of securities and other financial instruments that underlie contracts that may be cleared through NSCC. NSCC proposes to add new Section 11 to this rule that will contain language that is similar to language in FICC’s and DTC’s rules. Specifically, the revised rule would provide that securities or other financial instruments of an issuer listed on the Office of Foreign Assets Control (‘‘OFAC’’) list of specially designated nationals distributed by the U.S. Department of the Treasury or of an issuer that is incorporated in a country that is on the OFAC list of countries subject to comprehensive sanctions may not be: (a) Submitted to NSCC by a member for processing or (b) requested by members for inclusion on lists of securities or other financial instruments maintained by NSCC pursuant to Rule 3. jlentini on PROD1PC65 with NOTICES 2. Forms Currently, NSCC’s Rule 28 states that the delivery of forms of lists, notices, and other documents may be delivered by the use of any media, such as magnetic tape, discs, or cards, as shall be prescribed in NSCC’s Procedures. NSCC proposes to remove the language ‘‘such as magnetic tape, discs or cards’’ because such modes of delivery are outdated. 3. Signatures NSCC proposes to amend Rule 32 with respect to acceptable forms of signatures. Currently, this rule permits NSCC to accept documents from members that have been executed using mechanically reproduced facsimile signatures. The proposed rule change modernizes this rule by permitting NSCC, at its option, to rely on any other electronic, optical, or other similar forms of signatures in lieu of original signatures. The new language is adapted from similar language contained in the rule of DTC and both of FICC’s divisions (the Government Securities Division and the Mortgage-Backed Securities Division). In addition, NSCC will revise the title of this rule from ‘‘Facsimile 4 The Commission has modified the text of the summaries prepared by NSCC. VerDate Aug<31>2005 20:43 Dec 26, 2006 Jkt 211001 Signatures’’ to ‘‘Signatures’’ in order to remain consistent with the abovementioned changes. NSCC believes that the proposed rule changes are consistent with the requirements of the Act and the rules and regulations thereunder because they are concerned solely with the administration of NSCC and do not affect the safeguarding of securities or funds in the custody or control of NSCC or for which it is responsible. B. Self-Regulatory Organization’s Statement on Burden on Competition NSCC believes that the proposed rule change will have no 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 NSCC has not solicited or received written comments relating to the proposed rule change. NSCC will notify the Commission of any written comments it receives. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(iii) 5 of the Act and Rule 19b–4(f)(4) 6 thereunder because it effects a change in an existing service of a registered clearing agency that does not adversely affect the safeguarding of securities or funds in the custody or control of the clearing agency or for which it is responsible and does not significantly affect the respective rights or obligations of the clearing agency or person using the service. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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: 5 15 6 17 PO 00000 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b-4(f)(4). Frm 00129 Fmt 4703 Sfmt 4703 77845 Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–NSCC–2006–13 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington DC 20549–1090. All submissions should refer to File No. SR–NSCC–2006–13. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C 552, will be available for inspection and copying in the Commission’s Public Reference Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will be available for inspection and copying at NSCC’s principal office and on NSCC’s Web site at http:// www.nscc.com/legal/index.html. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submission should refer to File No. SR– NSCC–2006–13 and should be submitted on or before January 17, 2007. For the Commission by the Division of Market Regulation, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E6–22084 Filed 12–26–06; 8:45 am] BILLING CODE 8011–01–P 7 17 E:\FR\FM\27DEN1.SGM CFR 200.30–3(a)(12). 27DEN1

Agencies

[Federal Register Volume 71, Number 248 (Wednesday, December 27, 2006)]
[Notices]
[Pages 77844-77845]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22084]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-54958; File No. SR-NSCC-2006-13]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Relating to Harmonizing Administrative Provisions With 
Affiliated Clearing Agencies

December 18, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 3, 2006, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change as described in Items I, II, and III below, which Items have 
been prepared primarily by 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) \3\ thereunder so that the proposal was effective upon filing 
with the Commission. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \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 this filing is to harmonize various administrative 
aspects of NSCC's rules with the rules of its clearing agency 
affiliates, the Fixed Income Clearing Corporation (``FICC'') and The 
Depository Trust Company (``DTC'').

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

[[Page 77845]]

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 the text of the summaries 
prepared by NSCC.
---------------------------------------------------------------------------

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

1. OFAC Status and Securities Eligibility
    NSCC's Rule 3 sets forth criteria relating to the eligibility of 
securities and other financial instruments that underlie contracts that 
may be cleared through NSCC. NSCC proposes to add new Section 11 to 
this rule that will contain language that is similar to language in 
FICC's and DTC's rules. Specifically, the revised rule would provide 
that securities or other financial instruments of an issuer listed on 
the Office of Foreign Assets Control (``OFAC'') list of specially 
designated nationals distributed by the U.S. Department of the Treasury 
or of an issuer that is incorporated in a country that is on the OFAC 
list of countries subject to comprehensive sanctions may not be: (a) 
Submitted to NSCC by a member for processing or (b) requested by 
members for inclusion on lists of securities or other financial 
instruments maintained by NSCC pursuant to Rule 3.
2. Forms
    Currently, NSCC's Rule 28 states that the delivery of forms of 
lists, notices, and other documents may be delivered by the use of any 
media, such as magnetic tape, discs, or cards, as shall be prescribed 
in NSCC's Procedures. NSCC proposes to remove the language ``such as 
magnetic tape, discs or cards'' because such modes of delivery are 
outdated.
3. Signatures
    NSCC proposes to amend Rule 32 with respect to acceptable forms of 
signatures. Currently, this rule permits NSCC to accept documents from 
members that have been executed using mechanically reproduced facsimile 
signatures. The proposed rule change modernizes this rule by permitting 
NSCC, at its option, to rely on any other electronic, optical, or other 
similar forms of signatures in lieu of original signatures. The new 
language is adapted from similar language contained in the rule of DTC 
and both of FICC's divisions (the Government Securities Division and 
the Mortgage-Backed Securities Division). In addition, NSCC will revise 
the title of this rule from ``Facsimile Signatures'' to ``Signatures'' 
in order to remain consistent with the above-mentioned changes.
    NSCC believes that the proposed rule changes are consistent with 
the requirements of the Act and the rules and regulations thereunder 
because they are concerned solely with the administration of NSCC and 
do not affect the safeguarding of securities or funds in the custody or 
control of NSCC or for which it is responsible.

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

    NSCC believes that the proposed rule change will have no 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

    NSCC has not solicited or received written comments relating to the 
proposed rule change. NSCC will notify the Commission of any written 
comments it receives.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(iii) \5\ of the Act and Rule 19b-4(f)(4) \6\ thereunder 
because it effects a change in an existing service of a registered 
clearing agency that does not adversely affect the safeguarding of 
securities or funds in the custody or control of the clearing agency or 
for which it is responsible and does not significantly affect the 
respective rights or obligations of the clearing agency or person using 
the service. At any time within 60 days of the filing of the proposed 
rule change, the Commission may summarily abrogate such rule change if 
it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-NSCC-2006-13 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington DC 20549-1090.
    All submissions should refer to File No. SR-NSCC-2006-13. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C 552, will be available for inspection and copying 
in the Commission's Public Reference Section, 100 F Street, NE., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at NSCC's principal office and on NSCC's Web 
site at http://www.nscc.com/legal/index.html. All comments received 
will be posted without change; the Commission does not edit personal 
identifying information from submissions. You should submit only 
information that you wish to make available publicly. All submission 
should refer to File No. SR-NSCC-2006-13 and should be submitted on or 
before January 17, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E6-22084 Filed 12-26-06; 8:45 am]
BILLING CODE 8011-01-P