Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Related to Fees Charged to the CDS Clearing and Depository Services, Inc., 13846-13847 [E7-5350]
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13846
Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices
it meets this requirement because it
deems the Shares to be equity securities,
thus rendering trading in the Shares
subject to the Exchange’s existing rules
governing the trading of equity
securities.
The Commission further believes that
the proposal is consistent with Section
11A(a)(1)(C)(iii) of the Act,21 which sets
forth Congress’ finding that it is in the
public interest and appropriate for the
protection of investors and the
maintenance of fair and orderly markets
to assure the availability to brokers,
dealers, and investors of information
with respect to quotations for and
transactions in securities. Quotations for
and last sale information regarding the
Shares are publicly available on the
Web site of the Funds and Amex. Such
Web sites also disseminate information
about the current and most recent NAV
per Share, the Bid-Ask Price of the
Shares, and discount and premium
information of the Bid-Ask Price against
the NAV. The Index Sponsor calculates
and publishes through the facilities of
the CT and major market data vendors
the intra-day values of each Index at
least every 15 seconds during regular
trading hours and the closing levels of
each Index. In addition, Amex
disseminates through the CT for each of
the Funds on a per-Share basis an
updated Indicative Fund Value, which
generally reflects the cash required for
creations and redemptions of Shares, at
least every 15 seconds during the
trading day. The Administrator
calculates and simultaneously
disseminates once each business day to
all market participants the NAV per
Share and publishes the most recent
Cash Deposit Amount on a per-Share
basis. Also, the daily settlement prices
of and other applicable information
regarding the DX Contracts, including
futures quotes and last sale information,
are publicly available on NYBOT’s Web
site and on the Web sites of various
market data vendors, automated
quotation systems, and other financial
information services.
The Commission notes that, if the
Shares should be delisted by the listing
exchange, the Exchange would no
longer have authority to trade the Shares
pursuant to this order.
In support of this proposal, the
Exchange has made the following
representations:
(1) The Exchange’s surveillance
procedures are adequate to address any
concerns associated with the trading of
the Shares on a UTP basis.
(2) The Exchange would inform its
members in an Information Circular of
the special characteristics and risks
associated with trading the Shares,
including suitability recommendation
requirements.
(3) The Exchange would require its
members to deliver a prospectus to
investors purchasing Shares prior to or
concurrently with a transaction in such
Shares and will note this prospectus
delivery requirement in the Information
Circular.
This approval order is conditioned on
the Exchange’s adherence to the
foregoing representations.
The Commission finds good cause for
approving this proposal before the
thirtieth day after the publication of
notice thereof in the Federal Register.
As noted above, the Commission
previously found that the listing and
trading of the Shares on Amex is
consistent with the Act. The
Commission presently is not aware of
any regulatory issue that should cause it
to revisit that finding or would preclude
the trading of the Shares on the
Exchange pursuant to UTP. Therefore,
accelerating approval of this proposal
should benefit investors by creating,
without undue delay, additional
competition in the market for such
Shares.
V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,22 that the
proposed rule change (SR–NASDAQ–
2007–023) be, and it hereby is, approved
on an accelerated basis.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.23
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5348 Filed 3–22–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55490; File No. SR–NSCC–
2007–02]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change Related to Fees Charged
to the CDS Clearing and Depository
Services, Inc.
March 19, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
22 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
23 17
21 15
U.S.C. 78k–1(a)(1)(C)(iii).
VerDate Aug<31>2005
16:41 Mar 22, 2007
Jkt 211001
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January 26, 2007, 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.
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
The proposed rule change would
permit NSCC, effective February 1,
2007, to cease to charge fees for
‘‘Covered Services’’ in ‘‘Omnibus
Accounts’’ (as each term is defined
below) to the CDS Clearing and
Depository Services, Inc. (‘‘CDS’’),
formerly the Canadian Depository for
Securities Ltd., in exchange for CDS
agreeing not to charge NSCC for such
services.2
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 such statements.3
(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 facilitate the efficient
processing of cross-border securities
transactions between the U.S. and
Canada. CDS is a participant in both
NSCC and DTC. CDS holds securities in
the name of Cede & Co., DTC’s nominee
name, in one or more omnibus accounts
at DTC, and also has a clearance account
at NSCC (collectively the ‘‘CDS
Omnibus Accounts’’).4
2 The Depository Trust Company (‘‘DTC’’) has
submitted a similar proposed rule change (File No.
SR–DTC–2007–02).
3 The Commission has modified parts of these
statements.
4 For purposes of this rule filing, the term ‘‘CDS
Omnibus Accounts’’ shall not include CDS’s
additional accounts established pursuant to the
Multiple Account Number Agreement, dated
October 27, 2006 between CDS and NSCC and the
Additional Account Agreement, dated October 27,
2006 between DTC and CDS.
E:\FR\FM\23MRN1.SGM
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Federal Register / Vol. 72, No. 56 / Friday, March 23, 2007 / Notices
sroberts on PROD1PC70 with NOTICES
CDS operates the New York Link
Service, which enables CDS Participants
to clear and settle transactions with DTC
Participants through sponsored
accounts maintained by CDS with DTC
and NSCC. Through such sponsored
accounts, CDS Participants may clear
and settle transactions on a trade for
trade basis or on a continuous net
settlement basis through the facilities of
DTC and NSCC. DTC operates the
Canadian-Link Service, which enables
DTC Participants to clear and settle
transactions with CDS Participants
through an omnibus account maintained
by DTC at CDS.5
In order to more efficiently facilitate
cross-border clearance and settlement
DTC, NSCC, and CDS have agreed not
to charge each other for Covered
Services 6 in Omnibus Accounts.
Currently, DTC, NSCC, and CDS
charge fees in accordance with their
respective standard fee schedules for
securities clearing, settlement, and asset
servicing in their respective Omnibus
Accounts. The proposed rule change
would provide that instead of invoicing
each other each month for services in
the Omnibus Accounts, DTC and NSCC
will no longer charge CDS for Covered
Services in Omnibus Accounts in
exchange for CDS no longer charging
DTC and NSCC for similar services. As
most of the activity processed in each of
the Omnibus Accounts relates to
reciprocal services which are charged to
DTC, NSCC, and CDS at different rates
(e.g., DTC would be charged in
accordance with the standard CDS fee
schedule and vice versa) not charging
each other for Covered Services will
ensure that the fees of NSCC and CDS
are more equitably aligned.
DTC, NSCC, and CDS will continue to
charge their respective participants for
activity in the Omnibus Accounts.
This proposed rule change is
consistent with the requirements
Section 17A of the Act and the rules and
regulations thereunder because it
recognizes that most of the activity in
the Omnibus Accounts represents the
processing of reciprocal activity in
similar services used by each of the
5 Securities Exchange Act Release No. 52784
(November 16, 2005), 70 FR 70902 (November 23,
2005) [File No. SR–DTC–2005–08].
6 ‘‘Covered Services’’ includes such services as:
(a) Messaging and conversion of messages, (b)
clearing, (c) monthly account charges, (d)
deliveries/receives, (e) deposits and withdrawals, (f)
custody, (g) asset servicing (dividends,
reorganizations), (h) tax services, including U.S.
and Canadian tax withholding, as applicable, and
non-U.S. Tax Relief and Foreign Currency Payments
via the Elective Dividend Service (EDS), (i)
communications/networking, (j) money settlement
(and roll-up), (k) reconciliation, and (l) any other
services agreed to between DTC, NSCC, and CDS in
writing.
VerDate Aug<31>2005
16:41 Mar 22, 2007
Jkt 211001
entities which are charged to DTC,
NSCC, and CDS at different rates. As
such, it provides for a more equitable
allocation of fees charged by DTC and
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.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change
changes fees charged clearing members
by NSCC, it has become effective
pursuant to Section 19(b)(3)(A)(ii) of the
Act 7 and Rule 19b–4(f)(2) 8 thereunder.
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:
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–2007–02 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–2007–02. 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 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.org.
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–2007–02 and should
be submitted on or before April 13,
2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–5350 Filed 3–22–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–55484; File No. SR–
NYSEArca–2006–67]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and Order
Granting Accelerated Approval of a
Proposed Rule Change as Modified by
Amendment No. 1 Thereto To Trade
Shares of the PowerShares DB U.S.
Dollar Index Funds Pursuant to
Unlisted Trading Privileges
March 16, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934, as
amended, (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
9 17
7 15
U.S.C. 78s(b)(3)(A)(ii).
8 17 CFR 240.19b–4(f)(2).
PO 00000
Frm 00113
Fmt 4703
Sfmt 4703
13847
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 72, Number 56 (Friday, March 23, 2007)]
[Notices]
[Pages 13846-13847]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-5350]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-55490; File No. SR-NSCC-2007-02]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Related to Fees Charged to the CDS Clearing and Depository
Services, Inc.
March 19, 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 as 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
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change would permit NSCC, effective February 1,
2007, to cease to charge fees for ``Covered Services'' in ``Omnibus
Accounts'' (as each term is defined below) to the CDS Clearing and
Depository Services, Inc. (``CDS''), formerly the Canadian Depository
for Securities Ltd., in exchange for CDS agreeing not to charge NSCC
for such services.\2\
---------------------------------------------------------------------------
\2\ The Depository Trust Company (``DTC'') has submitted a
similar proposed rule change (File No. SR-DTC-2007-02).
---------------------------------------------------------------------------
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 such
statements.\3\
---------------------------------------------------------------------------
\3\ The Commission has modified parts of these statements.
---------------------------------------------------------------------------
(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 facilitate the
efficient processing of cross-border securities transactions between
the U.S. and Canada. CDS is a participant in both NSCC and DTC. CDS
holds securities in the name of Cede & Co., DTC's nominee name, in one
or more omnibus accounts at DTC, and also has a clearance account at
NSCC (collectively the ``CDS Omnibus Accounts'').\4\
---------------------------------------------------------------------------
\4\ For purposes of this rule filing, the term ``CDS Omnibus
Accounts'' shall not include CDS's additional accounts established
pursuant to the Multiple Account Number Agreement, dated October 27,
2006 between CDS and NSCC and the Additional Account Agreement,
dated October 27, 2006 between DTC and CDS.
---------------------------------------------------------------------------
[[Page 13847]]
CDS operates the New York Link Service, which enables CDS
Participants to clear and settle transactions with DTC Participants
through sponsored accounts maintained by CDS with DTC and NSCC. Through
such sponsored accounts, CDS Participants may clear and settle
transactions on a trade for trade basis or on a continuous net
settlement basis through the facilities of DTC and NSCC. DTC operates
the Canadian-Link Service, which enables DTC Participants to clear and
settle transactions with CDS Participants through an omnibus account
maintained by DTC at CDS.\5\
---------------------------------------------------------------------------
\5\ Securities Exchange Act Release No. 52784 (November 16,
2005), 70 FR 70902 (November 23, 2005) [File No. SR-DTC-2005-08].
---------------------------------------------------------------------------
In order to more efficiently facilitate cross-border clearance and
settlement DTC, NSCC, and CDS have agreed not to charge each other for
Covered Services \6\ in Omnibus Accounts.
---------------------------------------------------------------------------
\6\ ``Covered Services'' includes such services as: (a)
Messaging and conversion of messages, (b) clearing, (c) monthly
account charges, (d) deliveries/receives, (e) deposits and
withdrawals, (f) custody, (g) asset servicing (dividends,
reorganizations), (h) tax services, including U.S. and Canadian tax
withholding, as applicable, and non-U.S. Tax Relief and Foreign
Currency Payments via the Elective Dividend Service (EDS), (i)
communications/networking, (j) money settlement (and roll-up), (k)
reconciliation, and (l) any other services agreed to between DTC,
NSCC, and CDS in writing.
---------------------------------------------------------------------------
Currently, DTC, NSCC, and CDS charge fees in accordance with their
respective standard fee schedules for securities clearing, settlement,
and asset servicing in their respective Omnibus Accounts. The proposed
rule change would provide that instead of invoicing each other each
month for services in the Omnibus Accounts, DTC and NSCC will no longer
charge CDS for Covered Services in Omnibus Accounts in exchange for CDS
no longer charging DTC and NSCC for similar services. As most of the
activity processed in each of the Omnibus Accounts relates to
reciprocal services which are charged to DTC, NSCC, and CDS at
different rates (e.g., DTC would be charged in accordance with the
standard CDS fee schedule and vice versa) not charging each other for
Covered Services will ensure that the fees of NSCC and CDS are more
equitably aligned.
DTC, NSCC, and CDS will continue to charge their respective
participants for activity in the Omnibus Accounts.
This proposed rule change is consistent with the requirements
Section 17A of the Act and the rules and regulations thereunder because
it recognizes that most of the activity in the Omnibus Accounts
represents the processing of reciprocal activity in similar services
used by each of the entities which are charged to DTC, NSCC, and CDS at
different rates. As such, it provides for a more equitable allocation
of fees charged by DTC and 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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change changes fees charged clearing
members by NSCC, it has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \8\ thereunder. 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)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2007-02 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-2007-02. 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 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.org.
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-2007-02
and should be submitted on or before April 13, 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. E7-5350 Filed 3-22-07; 8:45 am]
BILLING CODE 8010-01-P
