Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Its Ability To Receive Transaction Data From Trade Reporting Facilities That Are Facilities of a Self-Regulatory Organization, 28752-28753 [E7-9762]

Download as PDF 28752 Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NASD–2006–044 and should be submitted on or before June 12, 2007. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.46 Jill M. Peterson, Assistant Secretary. [FR Doc. E7–9742 Filed 5–21–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–55770; File No. SR–NSCC– 2007–05] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Its Ability To Receive Transaction Data From Trade Reporting Facilities That Are Facilities of a Self-Regulatory Organization May 15, 2007. jlentini on PROD1PC65 with NOTICES Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’), 1 notice is hereby given that on March 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 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. 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 clarify NSCC’s Rule 7, ‘‘Comparison and Trade Recording Operation,’’ in order to make clear that NSCC may accept transaction data on behalf of NSCC members from trade reporting facilities that are affiliated 46 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78s(b)(3)(A)(i). 3 17 CFR 240.19b–4(f)(1). with and operated as a facility of a selfregulatory organization (‘‘Trade Reporting Facilities’’ or ‘‘TRFs’’). 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 The purpose of this filing is to clarify NSCC’s Rule 7, ‘‘Comparison and Trade Recording Operation,’’ in order to make clear that NSCC may accept transaction data on behalf of NSCC Members from Trade Reporting Facilities. Background NSCC’s Rule 7 permits NSCC in its discretion to accept transaction data from self-regulatory organizations (‘‘SROs’’), as defined in the Securities Exchange Act of 1934 (and, similarly, from derivatives clearing organizations registered or deemed registered with the Commodities Futures Trading Commission). Such data may be provided directly by an SRO or through subsidiary or affiliated organizations. In conjunction with the recent separation of the National Association of Securities Dealers, Inc. (‘‘NASD’’) and The Nasdaq Stock Market, Inc. (‘‘Nasdaq’’), the Commission approved the establishment by NASD and Nasdaq of the NASD/Nasdaq Trade Reporting Facility, which provides NASD members with an alternative means for reporting transactions in exchangelisted securities effected otherwise than on an exchange. Since then, NASD has established several additional new TRFs in conjunction with other registered securities exchanges, each of which provides NASD members with alternate means for reporting transactions in exchange-listed securities effected otherwise than on an exchange. All of these TRFs will operate as joint ventures with the relevant exchanges, but NASD, the ‘‘SRO Member’’ of each such venture, will have sole regulatory 1 15 VerDate Aug<31>2005 18:21 May 21, 2007 4 The Commission has modified the text of the summaries prepared by NSCC. Jkt 211001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 responsibility for each TRF. As such, the TRFs are facilities ‘‘of NASD and subject to NASD’s registration as a national securities association.’’5 At the current time, NASD filed proposed rule changes with the Commission relating to the establishment of the following TRFs: The NASD/Nasdaq TRF; the NASD/ National Securities Exchange (NSX) TRF; the NASD/Boston Stock Exchange (BSE) TRF; and the NASD/New York Stock Exchange (NYSE) TRF. Currently, all the TRFs are operational. The rules governing the operations of these facilities are contained in NASD Rule 4000 and 6100 Series for the NASD/ Nasdaq TRF, NASD Rule 4000C and 6000C Series for the NASD/NSX TRF, NASD Rule 4000D and 6000D Series for the NASD/BSE TRF, and NASD Rule 4000E and 6000E Series for the NASD/ NYSE TRF. With the exception of the NASD/NYSE TRF, the applicable rules permit the TRFs, at the option of their NASD member participant, to submit the data relating to reported trades to NSCC for clearance and settlement. In order to accommodate the NASD and to promote the efficient processing of securities transactions, NSCC proposes to clarify its Rule 7, Section 5 6 to make clear that it may accept transaction data from such TRFs as facilities of the NASD, the applicable SRO. For this purpose, the proposed clarification provides that the TRF be affiliated with and operated as a facility of the SRO and that the rules and operation of the TRF be the subject of a rule change of the SRO that has been duly filed with the Commission and is effective.7 By allowing NSCC to receive transaction data for clearing purposes from these facilities with respect to NSCC’s members, broker-dealers will be able to report transactions for both reporting/regulatory and clearing purposes in a single report to the TRFs. 5 See e.g., Securities Exchange Act Release Nos. 54084 (June 30, 2006), 71 FR 38935 (July 10, 2006) [SR–NASD–2005–087] (establishment of the NASD/ Nasdaq TRF); 54715 (November 6, 2006), 71 FR 66354 (November 14, 2006) [SR–NASD–2006–108] (establishment of the NASD/NSX TRF); and 54931 (December 13, 2006), 71 FR 76409 (December 20, 2006) [SR–NASD–2006–115] (establishment of the NASD/BSE TRF). 6 Rule 7, Section 5 is proposed to be renumbered as part of other changes pending pursuant to File No. SR–NSCC–2006–04. 7 NASD filed a proposed rule change relating to the establishment of the NASD/NYSE TRF for immediate effectiveness, asserting that such proposed rule change was ‘‘non-controversial’’ because it was substantially similar to the rules relating to the other TRFs, which were subject to notice and comment and approved by the Commission. Securities Exchange Act Release No. 55325 (February 21, 2007), 72 FR 8820 (February 27, 2007) [SR–NASD–2007–011]. E:\FR\FM\22MYN1.SGM 22MYN1 Federal Register / Vol. 72, No. 98 / Tuesday, May 22, 2007 / Notices The proposed rule change is consistent with the requirements of Section 17A of the Act 8 and the rules and regulations thereunder applicable to NSCC 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 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. 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 rule change has become effective upon filing pursuant to Section 19(b)(3)(A)(i) of the Act 9 and Rule 19b– 4(f)(1) 10 thereunder because it constitutes a stated policy, practice, or interpretation with respect to the meaning, administration, or enforcement of an existing rule of NSCC. 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. jlentini on PROD1PC65 with NOTICES 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 8 15 U.S.C. 78q–1. U.S.C. 78s(b)(3)(A)(i). 10 17 CFR 240.19b–4(f)(1). 9 15 VerDate Aug<31>2005 18:21 May 21, 2007 Jkt 211001 28753 adopted programs to reduce the incidental capture of sea turtles in their shrimp fisheries comparable to the Paper Comments program in effect in the United States. • Send paper comments in triplicate The Department also certified that the to Nancy M. Morris, Secretary, fishing environments in 24 other Securities and Exchange Commission, countries and one economy, Hong Kong, 100 F Street, NE., Washington, DC do not pose a threat of the incidental 20549–1090. taking of sea turtles protected under All submissions should refer to File Section 609. Shrimp imports from any Number SR–NSCC–2007–05. This file nation not certified were prohibited number should be included on the effective May 1, 2007 pursuant to subject line if e-mail is used. To help the Section 609. Commission process and review your DATES: Effective Date: May 22, 2007. comments more efficiently, please use FOR FURTHER INFORMATION CONTACT: only one method. The Commission will Clayton Stanger, Office of Marine post all comments on the Commission’s Conservation, Bureau of Oceans and Internet Web site (https://www.sec.gov/ International Environmental and rules/sro.shtml). Copies of the Scientific Affairs, Department of State, submission, all subsequent Washington, DC 20520–7818; telephone: amendments, all written statements (202) 647–2335. with respect to the proposed rule SUPPLEMENTARY INFORMATION: Section change that are filed with the 609 of Public Law 101–162 prohibits Commission, and all written imports of certain categories of shrimp communications relating to the unless the President certifies to the proposed rule change between the Congress not later than May 1 of each Commission and any person, other than year either: (1) That the harvesting those that may be withheld from the nation has adopted a program governing public in accordance with the the incidental capture of sea turtles in provisions of 5 U.S.C. 552, will be its commercial shrimp fishery available for inspection and copying in comparable to the program in effect in the Commission’s Public Reference the United States and has an incidental Section, 100 F Street, NE., Washington, take rate comparable to that of the DC 20549. The text of the proposed rule United States; or (2) that the fishing change is available at NSCC, the environment in the harvesting nation Commission’s Public Reference Room, does not pose a threat of the incidental and https://www.nscc.com/legal/2007/ taking of sea turtles. The President has 2007-05.pdf. All comments received delegated the authority to make this will be posted without change; the certification to the Department of State. Commission does not edit personal Revised State Department guidelines for identifying information from making the required certifications were submissions. You should submit only published in the Federal Register on information that you wish to make July 2, 1999 (Vol. 64, No. 130, Public available publicly. All submissions Notice 3086). should refer to File Number SR–NSCC– On May 1, 2007, the Department 2007–05 and should be submitted on or certified 16 nations on the basis that before June 11, 2007. their sea turtle protection programs are For the Commission by the Division of comparable to that of the United States: Market Regulation, pursuant to delegated Belize, Colombia, Costa Rica, Ecuador, authority.11 El Salvador, Guatemala, Guyana, Nancy M. Morris, Honduras, Madagascar, Mexico, Secretary. Nicaragua, Nigeria, Pakistan, Panama, Suriname, and Venezuela. [FR Doc. E7–9762 Filed 5–21–07; 8:45 am] The Department also certified 24 BILLING CODE 8010–01–P shrimp harvesting nations and one economy as having fishing environments that do not pose a danger DEPARTMENT OF STATE to sea turtles. Sixteen nations have [Public Notice 5802] shrimping grounds only in cold waters where the risk of taking sea turtles is Certifications Pursuant to Section 609 negligible. They are: Argentina, of Public Law 101–162 Belgium, Canada, Chile, Denmark, Finland, Germany, Iceland, Ireland, the SUMMARY: On May 1, 2007, the Netherlands, New Zealand, Norway, Department of State certified, pursuant Russia, Sweden, the United Kingdom, to Section 609 of Public Law 101–162 and Uruguay. Eight nations and one (‘‘Section 609’’), that 16 nations have economy only harvest shrimp using 11 17 CFR 200.30–3(a)(12). small boats with crews of less than five Number SR–NSCC–2007–05 on the subject line. PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\22MYN1.SGM 22MYN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 98 (Tuesday, May 22, 2007)]
[Notices]
[Pages 28752-28753]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-9762]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-55770; File No. SR-NSCC-2007-05]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Its Ability To Receive Transaction Data From 
Trade Reporting Facilities That Are Facilities of a Self-Regulatory 
Organization

May 15, 2007.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''), \1\ notice is hereby given that on March 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 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 clarify NSCC's Rule 
7, ``Comparison and Trade Recording Operation,'' in order to make clear 
that NSCC may accept transaction data on behalf of NSCC members from 
trade reporting facilities that are affiliated with and operated as a 
facility of a self-regulatory organization (``Trade Reporting 
Facilities'' or ``TRFs'').

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

    The purpose of this filing is to clarify NSCC's Rule 7, 
``Comparison and Trade Recording Operation,'' in order to make clear 
that NSCC may accept transaction data on behalf of NSCC Members from 
Trade Reporting Facilities.
Background
    NSCC's Rule 7 permits NSCC in its discretion to accept transaction 
data from self-regulatory organizations (``SROs''), as defined in the 
Securities Exchange Act of 1934 (and, similarly, from derivatives 
clearing organizations registered or deemed registered with the 
Commodities Futures Trading Commission). Such data may be provided 
directly by an SRO or through subsidiary or affiliated organizations.
    In conjunction with the recent separation of the National 
Association of Securities Dealers, Inc. (``NASD'') and The Nasdaq Stock 
Market, Inc. (``Nasdaq''), the Commission approved the establishment by 
NASD and Nasdaq of the NASD/Nasdaq Trade Reporting Facility, which 
provides NASD members with an alternative means for reporting 
transactions in exchange-listed securities effected otherwise than on 
an exchange. Since then, NASD has established several additional new 
TRFs in conjunction with other registered securities exchanges, each of 
which provides NASD members with alternate means for reporting 
transactions in exchange-listed securities effected otherwise than on 
an exchange. All of these TRFs will operate as joint ventures with the 
relevant exchanges, but NASD, the ``SRO Member'' of each such venture, 
will have sole regulatory responsibility for each TRF. As such, the 
TRFs are facilities ``of NASD and subject to NASD's registration as a 
national securities association.''\5\
---------------------------------------------------------------------------

    \5\ See e.g., Securities Exchange Act Release Nos. 54084 (June 
30, 2006), 71 FR 38935 (July 10, 2006) [SR-NASD-2005-087] 
(establishment of the NASD/Nasdaq TRF); 54715 (November 6, 2006), 71 
FR 66354 (November 14, 2006) [SR-NASD-2006-108] (establishment of 
the NASD/NSX TRF); and 54931 (December 13, 2006), 71 FR 76409 
(December 20, 2006) [SR-NASD-2006-115] (establishment of the NASD/
BSE TRF).
---------------------------------------------------------------------------

    At the current time, NASD filed proposed rule changes with the 
Commission relating to the establishment of the following TRFs: The 
NASD/Nasdaq TRF; the NASD/National Securities Exchange (NSX) TRF; the 
NASD/Boston Stock Exchange (BSE) TRF; and the NASD/New York Stock 
Exchange (NYSE) TRF. Currently, all the TRFs are operational. The rules 
governing the operations of these facilities are contained in NASD Rule 
4000 and 6100 Series for the NASD/Nasdaq TRF, NASD Rule 4000C and 6000C 
Series for the NASD/NSX TRF, NASD Rule 4000D and 6000D Series for the 
NASD/BSE TRF, and NASD Rule 4000E and 6000E Series for the NASD/NYSE 
TRF. With the exception of the NASD/NYSE TRF, the applicable rules 
permit the TRFs, at the option of their NASD member participant, to 
submit the data relating to reported trades to NSCC for clearance and 
settlement.
    In order to accommodate the NASD and to promote the efficient 
processing of securities transactions, NSCC proposes to clarify its 
Rule 7, Section 5 \6\ to make clear that it may accept transaction data 
from such TRFs as facilities of the NASD, the applicable SRO. For this 
purpose, the proposed clarification provides that the TRF be affiliated 
with and operated as a facility of the SRO and that the rules and 
operation of the TRF be the subject of a rule change of the SRO that 
has been duly filed with the Commission and is effective.\7\ By 
allowing NSCC to receive transaction data for clearing purposes from 
these facilities with respect to NSCC's members, broker-dealers will be 
able to report transactions for both reporting/regulatory and clearing 
purposes in a single report to the TRFs.
---------------------------------------------------------------------------

    \6\ Rule 7, Section 5 is proposed to be renumbered as part of 
other changes pending pursuant to File No. SR-NSCC-2006-04.
    \7\ NASD filed a proposed rule change relating to the 
establishment of the NASD/NYSE TRF for immediate effectiveness, 
asserting that such proposed rule change was ``non-controversial'' 
because it was substantially similar to the rules relating to the 
other TRFs, which were subject to notice and comment and approved by 
the Commission. Securities Exchange Act Release No. 55325 (February 
21, 2007), 72 FR 8820 (February 27, 2007) [SR-NASD-2007-011].

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

[[Page 28753]]

    The proposed rule change is consistent with the requirements of 
Section 17A of the Act \8\ and the rules and regulations thereunder 
applicable to NSCC 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.
---------------------------------------------------------------------------

    \8\ 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. 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 rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(i) of the Act \9\ and Rule 19b-4(f)(1) \10\ 
thereunder because it constitutes a stated policy, practice, or 
interpretation with respect to the meaning, administration, or 
enforcement of an existing rule of NSCC. 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(i).
    \10\ 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 
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-2007-05 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-2007-05. 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 NSCC, the Commission's Public Reference Room, and https://
www.nscc.com/legal/2007/2007-05.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-2007-05 and should be submitted on 
or before June 11, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Nancy M. Morris,
Secretary.
[FR Doc. E7-9762 Filed 5-21-07; 8:45 am]
BILLING CODE 8010-01-P

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