Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify the Rules of Its Government Securities Division With Respect to Obligations Associated With Brokered Repo Trades, 26662-26663 [E7-8913]

Download as PDF 26662 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices 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 Room. Copies of such filing also will be available for inspection and copying at the principal office of the CHX. 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–CHX–2007–05 and should be submitted on or before May 31, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–8960 Filed 5–9–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55701; File No. SR–FICC– 2007–02] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify the Rules of Its Government Securities Division With Respect to Obligations Associated With Brokered Repo Trades pwalker on PROD1PC71 with NOTICES May 3, 2007 Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on March 12, 2007, the Fixed Income Clearing Corporation (‘‘FICC’’) 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 FICC. FICC filed the proposed rule change pursuant to Section 19(b)(3)(A)(i) of the Act 2 and 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78s(b)(3)(A)(i). 1 15 VerDate Aug<31>2005 15:04 May 09, 2007 Jkt 211001 Rule 19b–4(f)(1) thereunder 3 so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The purpose of the proposed rule change is to add language to Section 3 to Rule 19 (Special Provisions for Brokered Repo Transactions) of FICC’s Government Securities Division (‘‘GSD’’) Rules to make explicit that blind broker repo trades assumed by FICC are included in the calculation of the parties to such trades’ receive and deliver obligations to FICC. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, FICC 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. FICC 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 In 2006, the Commission approved a clarifying change to FICC’s Rules relating to a longstanding practice by FICC of assuming brokers’ positions in certain blind broker repo transactions.5 As part of that filing, a new Section 5 was added to Rule 19 of the GSD Rules to expressly provide for this practice. FICC has determined that an additional change as set forth below is necessary to further clarify the GSD Rules with respect to obligations associated with brokered repo trades. Section 3 of GSD Rule 19 allows FICC to deem a repo brokered trade as compared based solely upon the submission of trade data by the broker despite an untimely submission of data by the dealer and states that such a trade would be included in the calculation of the margin and mark-to-market payments of the parties to the trade. 3 17 CFR 240.19b–4(f)(1). Commission has modified the text of the summaries prepared by FICC. 5 Securities Exchange Act Release No. 54487 (September 22, 2006), 71 FR 58025 (October 2, 2006) [File No. SR–FICC–2005–17]. 4 The PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 FICC is adding language to Section 3 to make it clear that such a trade is also included in the calculation of the parties’ receive and deliver obligations, which is consistent with the language in Section 5 of Rule 19. The proposed change is technical in nature and does not reflect a change in the practices or policies of GSD. The proposed rule change is consistent with the requirements of Section 17A of the Act 6 and the rules and regulations thereunder applicable to FICC because the proposed change is a clarification that does not adversely affect the safeguarding of securities and funds in the custody or control of the clearing agency or for which it is responsible and does not adversely affect the respective rights or obligations of the clearing agency or its members. (B) Self-Regulatory Organization’s Statement on Burden on Competition FICC 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. FICC will notify the Commission of any written comments received by FICC. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective upon filing pursuant to Section 19(b)(3)(A)(i) of the Act 7 and Rule 19b– 4(f)(1) 8 thereunder because it constitutes a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule of FICC. 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 6 15 U.S.C. 78q–1. U.S.C. 78s(b)(3)(A)(i). 8 17 CFR 240.19b–4(f)(1). 7 15 E:\FR\FM\10MYN1.SGM 10MYN1 Federal Register / Vol. 72, No. 90 / Thursday, May 10, 2007 / Notices 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–FICC–2007–02 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55704; File No. SR–ISE– 2007–25] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change as Modified by Amendment No. 1 Thereto Relating to Fee Changes May 3, 2007. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 • Send paper comments in triplicate (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 to Nancy M. Morris, Secretary, notice is hereby given that on April 17, Securities and Exchange Commission, 2007, the International Securities 100 F Street, NE., Washington, DC Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) 20549–1090. filed with the Securities and Exchange Commission (‘‘Commission’’) the All submissions should refer to File proposed rule change as described in Number SR–FICC–2007–02. This file Items I, II, and III below, which Items number should be included on the have been prepared substantially by the subject line if e-mail is used. To help the Exchange. On May 2, 2007, the ISE Commission process and review your submitted Amendment No. 1 to the comments more efficiently, please use proposed rule change.3 ISE has only one method. The Commission will designated this proposal as one post all comments on the Commission’s establishing or changing a due, fee, or Internet Web site (https://www.sec.gov/ other charge imposed by ISE under rules/sro.shtml). Copies of the Section 19(b)(3)(A)(ii) of the Act 4 and submission, all subsequent Rule 19b–4(f)(2) thereunder,5 which amendments, all written statements renders the proposal effective upon with respect to the proposed rule filing with the Commission. The change that are filed with the Commission is publishing this notice to Commission, and all written solicit comments on the proposed rule communications relating to the change, as amended, from interested proposed rule change between the persons. Commission and any person, other than those that may be withheld from the I. Self-Regulatory Organization’s public in accordance with the Statement of the Terms of Substance of provisions of 5 U.S.C. 552, will be the Proposed Rule Change available for inspection and copying in The ISE is proposing to amend its the Commission’s Public Reference Schedule of Fees to establish fees for Section, 100 F Street, NE., Washington, transactions in options on a new DC 20549. The text of the proposed rule category of Premium Products.6 The text change is available at FICC, the of the proposed rule change is available Commission’s Public Reference Room, at the Exchange, the Commission’s and https://www.ficc.com/commondocs/ Public Reference Room, and https:// rule.filings/rule.filing.07–02.pdf. All www.iseoptions.com. comments received will be posted II. Self-Regulatory Organization’s without change; the Commission does Statement of the Purpose of, and not edit personal identifying Statutory Basis for, the Proposed Rule information from submissions. You Change should submit only information that you wish to make available publicly. All In its filing with the Commission, the submissions should refer to File Exchange included statements Number SR–FICC–2007–02 and should concerning the purpose of and basis for be submitted on or before May 31, 2007. the proposed rule change, and discussed pwalker on PROD1PC71 with NOTICES Paper Comments For the Commission by the Division of Market Regulation, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–8913 Filed 5–9–07; 8:45 am] BILLING CODE 8010–01–P 9 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 15:04 May 09, 2007 Jkt 211001 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Amendment No. 1 makes clarifications to the purpose section of the proposed rule change and technical formatting corrections to the Schedule of Fees contained in Exhibit 5. 4 15 U.S.C. 78s(b)(3)(A)(ii). 5 17 CFR 240.19b–4(f)(2). 6 ‘‘Premium Products’’ is defined in the Schedule of Fees as the products enumerated therein. 2 17 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 26663 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. ISE 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 proposing to amend its Schedule of Fees to establish fees for transactions in options on a new category of Premium Products, foreign currency options, referred to in the Exchange’s Schedule of Fees as FX options.7 The Exchange began trading in FX options on April 17, 2007. All of the applicable execution fees covered by this filing are identical to fees charged by the Exchange for all other Premium Products. Specifically, the Exchange is proposing to adopt an execution fee and a comparison fee for all transactions in FX options.8 The amount of the execution fee and comparison fee for all ISE Market Maker transactions shall be equal to the execution fee and comparison fee currently charged by the Exchange for ISE Market Maker transactions in equity options.9 The amount of the execution fee and comparison fee for products covered by this filing shall be $0.15 and $0.03 per contract, respectively, for all Public Customer Orders 10 and Firm Proprietary orders. Finally, the amount of the execution fee and comparison fee for all non-ISE Market Maker transactions shall be $0.16 and $0.03 per contract, respectively. Since FX options are not multiply-listed, the Payment for Order Flow fee shall not apply. In addition to the execution fees noted above, the Exchange also proposes to charge ISE market makers a monthly access fee of $500 for the right to quote in FX options. In order to promote trading in FX options, the Exchange proposes to waive, through October 17, 2007: (1) All transaction 7 See Securities Exchange Act Release No. 55575 (April 3, 2007), 72 FR 17963 (April 10, 2007) (SR– ISE–2006–59) (order approving the listing and trading of foreign currency options). 8 These fees will be charged only to Exchange members. 9 The execution fee is currently between $.21 and $.12 per contract side, depending on the Exchange Average Daily Volume, and the comparison fee is currently $.03 per contract side. 10 ‘‘Public Customer Order’’ is defined in Exchange Rule 100(a)(39) as an order for the account of a Public Customer. ‘‘Public Customer’’ is defined in Exchange Rule 100(a)(38) as a person that is not a broker or dealer in securities. E:\FR\FM\10MYN1.SGM 10MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 90 (Thursday, May 10, 2007)]
[Notices]
[Pages 26662-26663]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-8913]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55701; File No. SR-FICC-2007-02]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Clarify the Rules of Its Government Securities Division With Respect to 
Obligations Associated With Brokered Repo Trades

May 3, 2007
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 12, 2007, the Fixed 
Income Clearing Corporation (``FICC'') 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 FICC. FICC filed the proposed rule change pursuant to Section 
19(b)(3)(A)(i) of the Act \2\ and Rule 19b-4(f)(1) thereunder \3\ so 
that the proposal was effective upon filing with the Commission. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(i).
    \3\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

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

    The purpose of the proposed rule change is to add language to 
Section 3 to Rule 19 (Special Provisions for Brokered Repo 
Transactions) of FICC's Government Securities Division (``GSD'') Rules 
to make explicit that blind broker repo trades assumed by FICC are 
included in the calculation of the parties to such trades' receive and 
deliver obligations to FICC.

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

    In its filing with the Commission, FICC 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. FICC 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 FICC.
---------------------------------------------------------------------------

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

    In 2006, the Commission approved a clarifying change to FICC's 
Rules relating to a longstanding practice by FICC of assuming brokers' 
positions in certain blind broker repo transactions.\5\ As part of that 
filing, a new Section 5 was added to Rule 19 of the GSD Rules to 
expressly provide for this practice. FICC has determined that an 
additional change as set forth below is necessary to further clarify 
the GSD Rules with respect to obligations associated with brokered repo 
trades.
---------------------------------------------------------------------------

    \5\ Securities Exchange Act Release No. 54487 (September 22, 
2006), 71 FR 58025 (October 2, 2006) [File No. SR-FICC-2005-17].
---------------------------------------------------------------------------

    Section 3 of GSD Rule 19 allows FICC to deem a repo brokered trade 
as compared based solely upon the submission of trade data by the 
broker despite an untimely submission of data by the dealer and states 
that such a trade would be included in the calculation of the margin 
and mark-to-market payments of the parties to the trade. FICC is adding 
language to Section 3 to make it clear that such a trade is also 
included in the calculation of the parties' receive and deliver 
obligations, which is consistent with the language in Section 5 of Rule 
19. The proposed change is technical in nature and does not reflect a 
change in the practices or policies of GSD.
    The proposed rule change is consistent with the requirements of 
Section 17A of the Act \6\ and the rules and regulations thereunder 
applicable to FICC because the proposed change is a clarification that 
does not adversely affect the safeguarding of securities and funds in 
the custody or control of the clearing agency or for which it is 
responsible and does not adversely affect the respective rights or 
obligations of the clearing agency or its members.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

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

    FICC 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. FICC will notify the Commission of any 
written comments received by FICC.

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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(i) of the Act \7\ and Rule 19b-4(f)(1) \8\ 
thereunder because it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule of FICC. 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(i).
    \8\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule

[[Page 26663]]

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-FICC-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-FICC-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. The text of the proposed rule change is 
available at FICC, the Commission's Public Reference Room, and https://
www.ficc.com/commondocs/rule.filings/rule.filing.07-02.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-FICC-2007-02 and should be 
submitted on or before May 31, 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. E7-8913 Filed 5-9-07; 8:45 am]
BILLING CODE 8010-01-P

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