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]

Download as PDF sroberts on PROD1PC70 with NOTICES 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 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 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 23MRN1 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 (http://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 (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 the principal office of NSCC and on NSCC’s Web site at http://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 E:\FR\FM\23MRN1.SGM 23MRN1

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]


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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).
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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\
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    \2\ The Depository Trust Company (``DTC'') has submitted a 
similar proposed rule change (File No. SR-DTC-2007-02).
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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\
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    \3\ The Commission has modified parts of these statements.
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(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.

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[[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\
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    \5\ Securities Exchange Act Release No. 52784 (November 16, 
2005), 70 FR 70902 (November 23, 2005) [File No. SR-DTC-2005-08].
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    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.
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    \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 (http://
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 (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 the principal office of NSCC and on 
NSCC's Web site at http://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\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-5350 Filed 3-22-07; 8:45 am]
BILLING CODE 8010-01-P