Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Create Service To Facilitate the Exchange of Account Related Information on an Automated Basis Between Members, 2319-2320 [E7-585]

Download as PDF Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Notices 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–CBOE–2007–02. 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 Commissions 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 Room. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–CBOE–2007–02 and should be submitted on or before February 8, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–615 Filed 1–17–07; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55082; File No. SR–NSCC– 2006–18] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Create Service To Facilitate the Exchange of Account Related Information on an Automated Basis Between Members pwalker on PROD1PC71 with NOTICES January 10, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 The proposed rule change seeks to modify NSCC’s Rules to provide for a service to facilitate the exchange of account related information on an automated basis during the movement of correspondent broker accounts between members or during other material events that result in the bulk movement of accounts between members. 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 Currently, when a correspondent firm chooses to move its book of business from one NSCC member to another, there is no standard method for transmitting the detailed customer data between the members. This information is currently exchanged through tapes, CDs, and other means and is dependent on the proprietary data format and values defined by the clearing firm from which the correspondent is moving. The process is time-consuming and prone to incorrect interpretation of data values. It is made more inefficient because clearing firms maintain separate code for each other clearing firm for which they convert data. 3 The amendment added the number of the new rule inadvertently omitted in the original filing. 4 The Commission has modified the text of the summaries prepared by NSCC. 13 17 CFR 200.30–3(a)(12) 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 17:52 Jan 17, 2007 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P VerDate Aug<31>2005 notice is hereby given that on December 21, 2006, the National Securities Clearing Corporation (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) and on January 5, 2007, amended 3 the proposed rule change described in Items I, II, and III below, which items have been prepared primarily by NSCC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties. Jkt 211001 PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 2319 NSCC proposes to modify its rules to create the Account Information Transmission Service (‘‘AIT’’) to facilitate the exchange of account related information during the movement of correspondent broker accounts between members or during other material events that result in the bulk movement of accounts between members. AIT will provide members with a standard mechanism to transmit customer data that will reduce the potential for lost and incorrectly interpreted data and will provide members with a secure facility for the exchange of data. The standard data model also will allow for the adoption of a single code base that is applicable for all conversion events. NSCC believes the single standard format could reduce costs, increase accuracy, and accelerate delivery time. NSCC proposes to develop and introduce AIT in two phases. The first phase will be to create the mechanism by which members may transmit data between themselves. Subject to final approval, NSCC intends to implement the first phase on Monday, February 12, 2007. The second phase will involve the development of standardized data formats. NSCC will notify the Commission of phase two enhancements prior to their implementation. Since AIT is only an information transmission service, NSCC is also proposing to amend its rules to clarify that NSCC will neither be responsible for the accuracy or completeness of any information transmitted through AIT nor for any omissions or delays that may occur in the transmission of AIT data. Finally, NSCC is proposing a $200 monthly subscription fee for participation in AIT during phase one. NSCC will reevaluate AIT service fees as subsequent enhancements are completed. NSCC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act 5 and the rules and regulations thereunder because by reducing costs, increasing accuracy, and accelerating delivery time of bulk movement of accounts between members, it will enable NSCC to facilitate the prompt and accurate clearance and settlement of securities transactions. (B) Self-Regulatory Organization’s Statement on Burden on Competition NSCC does not believe that the proposed rule change will have any impact or impose any burden on competition. 5 15 E:\FR\FM\18JAN1.SGM U.S.C. 78q–1. 18JAN1 2320 Federal Register / Vol. 72, No. 11 / Thursday, January 18, 2007 / Notices (C) Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The SIA Data Conversion Privacy Working Group initially requested NSCC provide this service. No written comments relating to the proposed rule change have been solicited or received. On November 3, 2006, NSCC notified members of the terms of AIT by Important Notice A#6334, P&S#5904. 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 Within thirty-five 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 ninety 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 such proposed rule change or (B) institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments 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 filings 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/legal/2006/2006-18amendment.pdf. 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– 2006–18 and should be submitted on or before February 2, 2007. For the Commission by the Division of Market Regulation, pursuant to delegated authority.6 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–585 Filed 1–17–07; 8:45 am] 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: BILLING CODE 8011–01–P Electronic Comments Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Rule 13 (Definitions of Orders) pwalker on PROD1PC71 with NOTICES • 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–2006–18 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55084; File No. SR–NYSE– 2006–90] January 10, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Paper Comments notice is hereby given that on December • Send paper comments in triplicate 27, 2006, the New York Stock Exchange to Nancy M. Morris, Secretary, LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with Securities and Exchange Commission, the Securities and Exchange 100 F Street, NE., Washington, DC Commission (‘‘Commission’’) the 20549–1090. proposed rule change as described in All submissions should refer to File Items I and II below, which Items have Number SR–NSCC–2006–18. This file been substantially prepared by the selfnumber should be included on the regulatory organization. The Exchange subject line if e-mail is used. To help the filed the proposed rule change pursuant Commission process and review your to Section 19(b)(3)(A) of the Act 3 and comments more efficiently, please use only one method. The Commission will 6 17 CFR 200.30–3(a)(12). post all comments on the Commission’s 1 15 U.S.C.78s(b)(1). 2 17 CFR 240.19b–4. Internet Web site (https://www.sec.gov/ 3 15 U.S.C.78s(b)(3)(A). rules/sro.shtml). Copies of the VerDate Aug<31>2005 17:52 Jan 17, 2007 Jkt 211001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 Rule 19b–4(f)(6) thereunder,4 which renders the proposed rule change effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NYSE proposes to amend Exchange Rule 13.30 to clarify that Stop Orders in Exchange Traded Funds (as defined below) are elected on quotes and trades. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is seeking to amend Exchange Rule 13.30 to clarify that Stop Orders (‘‘STP’’) in Investment Company Units,5 Trust Issued Receipts,6 and securities treated similarly (i.e., streetTRACKS Gold Shares, See Exchange Rule 1300) (collectively Exchange-Traded Funds (‘‘ETFs’’)) are elected on both quotes and trades. Prior to December 1, 2000, STP 7 Orders in ETFs were elected only on trades. At that time a STP Order to buy ETFs was elected and became a market order only when a transaction in the security occurred at or above the stop price, after the order was routed to the Display Book or was manually represented by a Floor broker in the 4 17 CFR 240.19b–4(f)(6). Company Units are defined in Rule 703.16 of the NYSE Listed Company Manual. 6 Trust Issued Receipts are defined in Exchange Rule 1200. 7 At that time, order types available to customers included both Stop Orders and Stop Limit Orders. Subsequently, on November 27, 2006, the Commission approved the Exchange’s proposal to eliminate Stop Limit Orders as an acceptable order type on the Exchange. See Securities Exchange Act Release No. 54820 (November 27, 2006), 71 FR 70824 (December 6, 2006) (SR–NYSE–2006–65). Stop Limit Orders are therefore not addressed in this filing. 5 Investment E:\FR\FM\18JAN1.SGM 18JAN1

Agencies

[Federal Register Volume 72, Number 11 (Thursday, January 18, 2007)]
[Notices]
[Pages 2319-2320]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-585]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55082; File No. SR-NSCC-2006-18]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of Proposed Rule Change To Create Service 
To Facilitate the Exchange of Account Related Information on an 
Automated Basis Between Members

January 10, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on December 21, 2006, the National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission'') and on January 5, 2007, amended \3\ the proposed rule 
change described in Items I, II, and III below, which items have been 
prepared primarily by NSCC. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ The amendment added the number of the new rule inadvertently 
omitted in the original filing.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change seeks to modify NSCC's Rules to provide 
for a service to facilitate the exchange of account related information 
on an automated basis during the movement of correspondent broker 
accounts between members or during other material events that result in 
the bulk movement of accounts between members.

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.
---------------------------------------------------------------------------

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

    Currently, when a correspondent firm chooses to move its book of 
business from one NSCC member to another, there is no standard method 
for transmitting the detailed customer data between the members. This 
information is currently exchanged through tapes, CDs, and other means 
and is dependent on the proprietary data format and values defined by 
the clearing firm from which the correspondent is moving. The process 
is time-consuming and prone to incorrect interpretation of data values. 
It is made more inefficient because clearing firms maintain separate 
code for each other clearing firm for which they convert data.
    NSCC proposes to modify its rules to create the Account Information 
Transmission Service (``AIT'') to facilitate the exchange of account 
related information during the movement of correspondent broker 
accounts between members or during other material events that result in 
the bulk movement of accounts between members. AIT will provide members 
with a standard mechanism to transmit customer data that will reduce 
the potential for lost and incorrectly interpreted data and will 
provide members with a secure facility for the exchange of data. The 
standard data model also will allow for the adoption of a single code 
base that is applicable for all conversion events. NSCC believes the 
single standard format could reduce costs, increase accuracy, and 
accelerate delivery time.
    NSCC proposes to develop and introduce AIT in two phases. The first 
phase will be to create the mechanism by which members may transmit 
data between themselves. Subject to final approval, NSCC intends to 
implement the first phase on Monday, February 12, 2007. The second 
phase will involve the development of standardized data formats. NSCC 
will notify the Commission of phase two enhancements prior to their 
implementation.
    Since AIT is only an information transmission service, NSCC is also 
proposing to amend its rules to clarify that NSCC will neither be 
responsible for the accuracy or completeness of any information 
transmitted through AIT nor for any omissions or delays that may occur 
in the transmission of AIT data. Finally, NSCC is proposing a $200 
monthly subscription fee for participation in AIT during phase one. 
NSCC will reevaluate AIT service fees as subsequent enhancements are 
completed.
    NSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \5\ and the rules and 
regulations thereunder because by reducing costs, increasing accuracy, 
and accelerating delivery time of bulk movement of accounts between 
members, it will enable NSCC to facilitate the prompt and accurate 
clearance and settlement of securities transactions.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will have any 
impact or impose any burden on competition.

[[Page 2320]]

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    The SIA Data Conversion Privacy Working Group initially requested 
NSCC provide this service. No written comments relating to the proposed 
rule change have been solicited or received. On November 3, 2006, NSCC 
notified members of the terms of AIT by Important Notice 
A6334, P&S5904. 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

    Within thirty-five 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 ninety 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 such proposed rule change or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml) or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NSCC-2006-18 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-2006-18. 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 filings 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/legal/2006/2006-18-
amendment.pdf. 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-2006-18 and should be submitted on or before February 2, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-585 Filed 1-17-07; 8:45 am]
BILLING CODE 8011-01-P
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