Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule To Make Technical and Updating Changes to Its Reconfirmation and Pricing Service, 13331-13332 [E7-5133]
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Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices
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)(ii) of the Act 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder 9 because it establishes or
changes a due, fee, or other charge
applicable only to a member imposed by
the self-regulatory organization.
Accordingly, the proposal is effective
upon Commission receipt of the filing.
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:
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of the filing also will be
available for inspection and copying at
the principal office of Nasdaq. 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–NASDAQ–2007–017 and
should be submitted on or before April
11, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5089 Filed 3–20–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55478; File No. SR–NSCC–
2007–03]
jlentini on PROD1PC65 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–NASDAQ–2007–017 on the
subject line.
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule To Make Technical and Updating
Changes to Its Reconfirmation and
Pricing Service
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–NASDAQ–2007–017. 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
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
January 26, 2007, 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 proposal 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 rule change from
interested parties.
March 15, 2007.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the rule change is to
make technical and updating changes to
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4).
13331
its Reconfirmation and Pricing Service
(‘‘RECAPS’’).
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
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
RECAPS is a mandated service for all
full-service NSCC members that
reconfirms and reprices members’ fails
in RECAP-eligible securities that
represent positions that are currently
failing outside of NSCC’s Continuous
Net Settlement (‘‘CNS’’) system. It thus
provides a mechanism for reducing
outstanding non-CNS member fails. The
proposed revisions to the procedures
reflect enhancements to the service,
confirming processing changes with
current processes, and deletion of
obsolete reports.
RECAPS is currently offered
quarterly. The processing cycle begins
on a Tuesday and ends with
successfully matched trades settling the
following Tuesday. On the first Tuesday
of the processing cycle, members submit
CUSIP files for fails designated for
processing through the service. The data
on these files is used to obtain current
prices for the designated securities. On
Friday, members submit eligible aged
fails to NSCC until a designated cut-off
time. On Saturday, NSCC distributes
RECAPS contract sheets, RECAPS CNS
and Non-CNS Compared Summaries,
Balance Orders (for matched
transactions in Balance Order
securities), and RECAPS CNS Projection
Reports and Advisory Listings. On
Monday, members take action on all
unmatched items. On Tuesday, the final
day of the RECAPS cycle, all matched
fails are scheduled to settle.
The process enhancements eliminate
the need for submission of CUSIP files
on Tuesday since current price
information can be obtained on Friday
when members submit their fails for
reconfirming and pricing. In addition,
1 15
8 15
9 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Aug<31>2005
17:08 Mar 20, 2007
Jkt 211001
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
4 The Commission has modified the text of the
summaries prepared by NSCC.
E:\FR\FM\21MRN1.SGM
21MRN1
13332
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices
the process enhancements enable the
distribution of reports at an earlier time
on Saturday and enable fails to settle on
the next settlement day after they match
(e.g., fails matched on Friday will settle
on Monday and fails matched on
Monday will settle on Tuesday).
Furthermore, the RECAPS CNS
Projection Report is being eliminated
because the relevant information will be
provided on the existing CNS Projection
Report. Similarly, to conform to current
trade processing practices where NSCC
has eliminated Balance Order and
Receive and Deliver tickets,5 RECAPS
Balance Orders and RECAPS Trade-forTrade Receive and Deliver Orders will
be evidenced by the information
contained on the RECAPS Non-CNS
Compared Trade Summary.
Finally, the RECAPS procedure is
being revised to clarify that reconfirmed
fails in securities where the original fail
price was less than one penny per share
will settle on a trade-for-trade basis as
a ‘‘Special Trade’’ with the RECAPS
value being the original comparison
value (as opposed to the systemgenerated price of one cent per share).
Clarifying language also is being added
to distinguish between information that
appears on the RECAPS CNS Compared
Trade Summary and information on the
RECAPS Non-CNS Compared Trade
Summary.
Since the RECAPS procedures
provides for NSCC to determine the
processing schedule for each RECAPS
cycle, NSCC advises its participants of
the RECAPS calendar and the
processing schedule through Important
Notices. Members have been advised on
the proposed scheduling changes
outlined above, as well as the other
enhancements described in this filing,
in Important Notice A#6323, P&S#5893
dated October 26, 2006.
The proposed rule change is
consistent with Section 17A of the Act,6
as amended, because the updated
procedures and operational
enhancements will further facilitate the
accurate clearance and settlement of
securities transactions, particularly, the
settlement of aged fails.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
jlentini on PROD1PC65 with NOTICES
NSCC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
5 Balance Order and Receiver and Deliver tickets
were eliminated as part of the CNS Rewrite in 2004.
Securities Exchange Act Release No. 50026 (July 15,
2004), 69 FR 43650 (July 21, 2004) [File No. SR–
NSCC–2004–01].
6 15 U.S.C. 78q–1.
VerDate Aug<31>2005
17:08 Mar 20, 2007
Jkt 211001
(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. On October 26,
2006, members were advised by
Important Notice A#6323, P&S#5893, of
the proposed enhancements to RECAPS.
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 proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A)(iii) of
the Act 7 and Rule 19b–4(f)(4) 8
thereunder because it effects a change in
an existing service of NSCC that: (i)
Does not adversely affect the
safeguarding of securities or funds in
the custody of NSCC or for which it is
responsible; and (ii) does not
significantly affect the respective rights
or obligations of NSCC or persons using
the service. At any time within sixty
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:
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://
nscc.com/legal/2007/2007-03.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–2007–03 and should
be submitted on or before April 11,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5133 Filed 3–20–07; 8:45 am]
BILLING CODE 8010–01–P
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–2007–03 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–2007–03. This file
number should be included on the
subject line if e-mail is used. To help the
7 15
8 17
PO 00000
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(4).
Frm 00097
Fmt 4703
Sfmt 4703
9 17
CFR 200.30–3(a)(12).
E:\FR\FM\21MRN1.SGM
21MRN1
]]>Agencies
[Federal Register Volume 72, Number 54 (Wednesday, March 21, 2007)]
[Notices]
[Pages 13331-13332]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5133]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55478; File No. SR-NSCC-2007-03]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule To Make Technical and Updating Changes to Its Reconfirmation and
Pricing Service
March 15, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 26, 2007, 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 proposal 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 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 rule change is to make technical and updating
changes to its Reconfirmation and Pricing Service (``RECAPS'').
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
RECAPS is a mandated service for all full-service NSCC members that
reconfirms and reprices members' fails in RECAP-eligible securities
that represent positions that are currently failing outside of NSCC's
Continuous Net Settlement (``CNS'') system. It thus provides a
mechanism for reducing outstanding non-CNS member fails. The proposed
revisions to the procedures reflect enhancements to the service,
confirming processing changes with current processes, and deletion of
obsolete reports.
RECAPS is currently offered quarterly. The processing cycle begins
on a Tuesday and ends with successfully matched trades settling the
following Tuesday. On the first Tuesday of the processing cycle,
members submit CUSIP files for fails designated for processing through
the service. The data on these files is used to obtain current prices
for the designated securities. On Friday, members submit eligible aged
fails to NSCC until a designated cut-off time. On Saturday, NSCC
distributes RECAPS contract sheets, RECAPS CNS and Non-CNS Compared
Summaries, Balance Orders (for matched transactions in Balance Order
securities), and RECAPS CNS Projection Reports and Advisory Listings.
On Monday, members take action on all unmatched items. On Tuesday, the
final day of the RECAPS cycle, all matched fails are scheduled to
settle.
The process enhancements eliminate the need for submission of CUSIP
files on Tuesday since current price information can be obtained on
Friday when members submit their fails for reconfirming and pricing. In
addition,
[[Page 13332]]
the process enhancements enable the distribution of reports at an
earlier time on Saturday and enable fails to settle on the next
settlement day after they match (e.g., fails matched on Friday will
settle on Monday and fails matched on Monday will settle on Tuesday).
Furthermore, the RECAPS CNS Projection Report is being eliminated
because the relevant information will be provided on the existing CNS
Projection Report. Similarly, to conform to current trade processing
practices where NSCC has eliminated Balance Order and Receive and
Deliver tickets,\5\ RECAPS Balance Orders and RECAPS Trade-for-Trade
Receive and Deliver Orders will be evidenced by the information
contained on the RECAPS Non-CNS Compared Trade Summary.
---------------------------------------------------------------------------
\5\ Balance Order and Receiver and Deliver tickets were
eliminated as part of the CNS Rewrite in 2004. Securities Exchange
Act Release No. 50026 (July 15, 2004), 69 FR 43650 (July 21, 2004)
[File No. SR-NSCC-2004-01].
---------------------------------------------------------------------------
Finally, the RECAPS procedure is being revised to clarify that
reconfirmed fails in securities where the original fail price was less
than one penny per share will settle on a trade-for-trade basis as a
``Special Trade'' with the RECAPS value being the original comparison
value (as opposed to the system-generated price of one cent per share).
Clarifying language also is being added to distinguish between
information that appears on the RECAPS CNS Compared Trade Summary and
information on the RECAPS Non-CNS Compared Trade Summary.
Since the RECAPS procedures provides for NSCC to determine the
processing schedule for each RECAPS cycle, NSCC advises its
participants of the RECAPS calendar and the processing schedule through
Important Notices. Members have been advised on the proposed scheduling
changes outlined above, as well as the other enhancements described in
this filing, in Important Notice A6323, P&S5893 dated
October 26, 2006.
The proposed rule change is consistent with Section 17A of the
Act,\6\ as amended, because the updated procedures and operational
enhancements will further facilitate the accurate clearance and
settlement of securities transactions, particularly, the settlement of
aged fails.
---------------------------------------------------------------------------
\6\ 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.
(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. On October 26, 2006, members were advised
by Important Notice A6323, P&S5893, of the proposed
enhancements to RECAPS. 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 proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-
4(f)(4) \8\ thereunder because it effects a change in an existing
service of NSCC that: (i) Does not adversely affect the safeguarding of
securities or funds in the custody of NSCC or for which it is
responsible; and (ii) does not significantly affect the respective
rights or obligations of NSCC or persons using the service. At any time
within sixty 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(i).
\8\ 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 (https://
www.sec.gov/rules/sro.shtml) or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NSCC-2007-03 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-2007-03. 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://nscc.com/legal/2007/2007-03.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-2007-03 and should be
submitted on or before April 11, 2007.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-5133 Filed 3-20-07; 8:45 am]
BILLING CODE 8010-01-P
