Self-Regulatory Organizations; The National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Use of the National Settlement Service, 42192-42193 [E7-14835]

Download as PDF 42192 Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Notices approved by the Commission.11 The Commission believes that the proposed changes to the Certificate are consistent with the Act. The Commission finds good cause to approve the proposal prior to the thirtieth day after the proposal was published for comment in the Federal Register. This approval allows the proposed rule change to take effect without delay. The proposed revisions to the Certificate do not make changes to the governance of FINRA not already contemplated by the proposed changes to FINRA’s By-Laws, which were published for comment and approved by the Commission.12 Therefore, interested persons were provided the opportunity to submit comments on essentially identical changes. For this reason, the Commission finds good cause, consistent with section 19(b)(2) of the Act, to grant accelerated approval to the proposed changes to the Certificate. The Commission finds good cause, consistent with section 19(b)(2) of the Act, to grant accelerated approval to the proposed change of the NASD’s name to FINRA because it is technical and does not impact members or other market participants. V. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act, that the proposed rule change (SR–NASD–2007– 053) is hereby approved on an accelerated basis.13 By the Commission. Nancy M. Morris, Secretary. [FR Doc. E7–14856 Filed 7–31–07; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–56125; File No. SR–NSCC– 2007–09] Self-Regulatory Organizations; The National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Use of the National Settlement Service jlentini on PROD1PC65 with NOTICES July 24, 2007. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on May 1, 2007, The National Securities Clearing Corporation (‘‘NSCC’’) filed 11 Id. 12 Id. 13 15 1 15 U.S.C. 78s(b)(2). U.S.C. 78s(b)(1). VerDate Aug<31>2005 20:12 Jul 31, 2007 Jkt 211001 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 permits NSCC to use the Federal Reserve Bank’s National Settlement Service (‘‘NSS’’) for the settlement of net-net credit balances. 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.2 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In 2003, as part of a larger initiative to create a centralized settlement system with its affiliate, The Depository Trust Company (‘‘DTC’’), NSCC required the use of NSS as the vehicle for all Settling Banks to satisfy their end of day net-net debits.3 In an effort to increase the efficiencies afforded by NSS, NSCC in conjunction with DTC is now modifying its rules to permit NSCC’s use of NSS to distribute net-net credits.4 Utilizing NSS as the payment mechanism for netnet credits will eliminate the need for NSCC to initiate wire payments for settlement monies owed by NSCC. However, should NSS not be available for any reason, NSCC will retain the capability to satisfy its settlement obligations using wire transfer. The proposed rule change is consistent with the requirements of section 17A of the Act and the rules and 2 The Commission has modified parts of these statements. 3 Securities Exchange Act Release No. 48744 (November 10, 2003), 68 FR 63831 (November 4, 2003) (File Nos. SR–NSCC–2003–19 and SR–DTC– 2003–11). 4 DTC has submitted a similar proposed rule change (File No. SR–DTC–2007–08) providing for the use of NSS for the distribution of net credits. PO 00000 Frm 00151 Fmt 4703 Sfmt 4703 regulations thereunder because it will not affect the safeguarding of funds or securities in NSCC’s custody and control or for which it is responsible. (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 The foregoing rule change has become effective pursuant to section 19(b)(3)(A)(iii) of the Act 5 and Rule 19b–4(f)(4) 6 promulgated thereunder because the proposal effects a change in an existing service of NSCC that (A) does not adversely affect the safeguarding of securities or funds in the custody or control of NSCC or for which it is responsible and (B) does not significantly affect the respective rights or obligations of NSCC or persons using the service. At any time within sixty days of the filing of the proposed rule change, the Commission could have summarily abrogated such rule change if it appeared to the Commission that such action was 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–2007–09 on the subject line. 5 15 6 17 E:\FR\FM\01AUN1.SGM U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(4). 01AUN1 Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Notices Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION the most significant aspects of such statements. [Release No. 34–56140; File No. SR–NYSE– 2007–55] A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of All submissions should refer to File Filing and Immediate Effectiveness of Number SR–NSCC–2007–09. This file Proposed Rule Change, as Modified by number should be included on the Amendment No. 1 Thereto, Relating to subject line if e-mail is used. To help the Rule 106 (Specialists’ Contact With Commission process and review your Listed Companies and Member comments more efficiently, please use Organizations) only one method. The Commission will post all comments on the Commission’s July 26, 2007. Pursuant to section 19(b)(1) of the Internet Web site (https://www.sec.gov/ Securities Exchange Act of 1934 rules/sro.shtml). Copies of the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 submission, all subsequent notice is hereby given that on June 28, amendments, all written statements 2007, the New York Stock Exchange with respect to the proposed rule LLC (‘‘NYSE’’ or ‘‘Exchange’’) filed with change that are filed with the the Securities and Exchange Commission, and all written Commission (‘‘Commission’’) the communications relating to the proposed rule change as described in proposed rule change between the Items I and II below, which Items have Commission and any person, other than been substantially prepared by the those that may be withheld from the Exchange. NYSE filed the proposal public in accordance with the pursuant to section 19(b)(3)(A) of the provisions of 5 U.S.C. 552, will be Act 3 and Rule 19b–4(f)(6) thereunder,4 available for inspection and copying in which renders the proposal effective the Commission’s Public Reference upon filing with the Commission. On Room, 100 F Street, NE., Washington, July 25, 2007, the Exchange submitted DC 20549, on official business days Amendment No. 1 to the proposed rule between the hours of 10 a.m. and 3 p.m. change. The Commission is publishing Copies of such filing also will be this notice to solicit comments on the available for inspection and copying at proposed rule change, as amended, from the principal office of NSCC. All interested persons. comments received will be posted I. Self-Regulatory Organization’s without change; the Commission does Statement of the Terms of Substance of not edit personal identifying the Proposed Rule Change information from submissions. You The Exchange proposes to amend should submit only information that you wish to make available publicly. All NYSE Rule 106 (Specialists’ Contact with Listed Companies and Member submissions should refer to File Number SR–NSCC–2007–09 and should Organizations). The text of the proposed rule change is available at NYSE, the be submitted on or before August 22, Commission’s Public Reference Room, 2007. and https://www.nyse.com. For the Commission by the Division of Market Regulation, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. [FR Doc. E7–14835 Filed 7–31–07; 8:45 am] jlentini on PROD1PC65 with NOTICES BILLING CODE 8010–01–P 42193 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange 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. The Exchange has prepared summaries, set forth in sections A, B, and C below, of U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 1. Purpose The Exchange seeks to amend NYSE Rule 106 in order to modify the requirements related to specialist contact with listed companies and with Exchange member organizations. The proposal takes into consideration the reality that a listed company’s, or a member organization’s, access to electronic information may result in such listed company or member organization declining to have meetings with the specialist. Therefore, the Exchange seeks to amend the rule to require the specialist unit to make itself available for contact with its listed companies and with certain Exchange member organizations. NYSE Rule 106 was adopted at a time when orders entered with the specialist were handled manually, and contact between a specialist unit and its listed companies was necessary to ensure that such listed companies were informed about the trading in its listed security on the Exchange trading floor.5 As a result, NYSE Rule 106(a) mandates interaction between a specialist unit and representatives of its listed companies. The rule is very specific as to the frequency of contact (quarterly) and the status of the issuer representative with whom the contact must be had (Secretary or higher). Further, the rule mandates that at least one of the quarterly meetings be in person. NYSE Rule 106(a) was intended to help foster a better understanding of the specialist function, the operations of the Exchange market, and the markets that are maintained in the listed company’s stock. The Exchange is mindful of the busy schedules kept by the highest ranking corporate employees in listed companies. As such, the Exchange believes that NYSE Rule 106 no longer takes into consideration the possibility that in today’s world of electronic messaging, Internet connectivity, and automated trading, a listed company may not need or want the type of contact with their specialist unit that is currently required by NYSE Rule 106(a). In addition to the listed companies’ ability to access public information, specialist units have internal departments that are responsible for 1 15 27 7 17 CFR 200.30–3(a)(12). VerDate Aug<31>2005 20:12 Jul 31, 2007 Jkt 211001 PO 00000 Frm 00152 Fmt 4703 Sfmt 4703 5 See Securities Exchange Act Release No. 27292 (September 26, 1989), 54 FR 41193 (October 5, 1989) (SR–NYSE–89–13). E:\FR\FM\01AUN1.SGM 01AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 72, Number 147 (Wednesday, August 1, 2007)]
[Notices]
[Pages 42192-42193]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14835]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56125; File No. SR-NSCC-2007-09]


Self-Regulatory Organizations; The National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Relating to Use of the National Settlement Service

July 24, 2007.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 1, 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 permits NSCC to use the Federal Reserve 
Bank's National Settlement Service (``NSS'') for the settlement of net-
net credit balances.

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.\2\
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    \2\ 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

    In 2003, as part of a larger initiative to create a centralized 
settlement system with its affiliate, The Depository Trust Company 
(``DTC''), NSCC required the use of NSS as the vehicle for all Settling 
Banks to satisfy their end of day net-net debits.\3\ In an effort to 
increase the efficiencies afforded by NSS, NSCC in conjunction with DTC 
is now modifying its rules to permit NSCC's use of NSS to distribute 
net-net credits.\4\ Utilizing NSS as the payment mechanism for net-net 
credits will eliminate the need for NSCC to initiate wire payments for 
settlement monies owed by NSCC. However, should NSS not be available 
for any reason, NSCC will retain the capability to satisfy its 
settlement obligations using wire transfer.
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 48744 (November 10, 
2003), 68 FR 63831 (November 4, 2003) (File Nos. SR-NSCC-2003-19 and 
SR-DTC-2003-11).
    \4\ DTC has submitted a similar proposed rule change (File No. 
SR-DTC-2007-08) providing for the use of NSS for the distribution of 
net credits.
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    The proposed rule change is consistent with the requirements of 
section 17A of the Act and the rules and regulations thereunder because 
it will not affect the safeguarding of funds or securities in NSCC's 
custody and control or for which it is responsible.

(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

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ promulgated 
thereunder because the proposal effects a change in an existing service 
of NSCC that (A) does not adversely affect the safeguarding of 
securities or funds in the custody or control of NSCC or for which it 
is responsible and (B) does not significantly affect the respective 
rights or obligations of NSCC or persons using the service. At any time 
within sixty days of the filing of the proposed rule change, the 
Commission could have summarily abrogated such rule change if it 
appeared to the Commission that such action was 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NSCC-2007-09 on the subject line.

[[Page 42193]]

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-2007-09. 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 Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of NSCC. 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-2007-09 and should be 
submitted on or before August 22, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-14835 Filed 7-31-07; 8:45 am]
BILLING CODE 8010-01-P

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