Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule To Make Technical Changes To Update and Align Provisions With Current Practice, 44902-44903 [E7-15542]
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44902
Federal Register / Vol. 72, No. 153 / Thursday, August 9, 2007 / Notices
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–15551 Filed 8–8–07; 8:45 am]
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
BILLING CODE 8010–01–P
(1) Off-the-Market Transactions
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56189; File No. SR–FICC–
2007–07]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
Proposed Rule To Make Technical
Changes To Update and Align
Provisions With Current Practice
August 2, 2007.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
June 21, 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 proposal pursuant to section
19(b)(3)(A)(i) and (ii) of the Act 2 and
Rule 19b–4(f)(1) and (2) 3 thereunder so
that the proposal was effective upon
filing with the Commission. The
Commission is publishing this notice to
solicit comments on the 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 rule change is to
make technical changes to certain
provisions of the Government Securities
Division (‘‘GSD’’) rules and the
Mortgage-Backed Securities Division
(‘‘MBSD’’) rules to update and to align
them with current practice.
mstockstill on PROD1PC66 with NOTICES
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
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(i) and (ii).
3 17 CFR 240.19b–4(f)(1) and (2).
1 15
VerDate Aug<31>2005
18:25 Aug 08, 2007
Jkt 211001
The definition of Off-the-Market
Transactions in the GSD rules is
outdated and does not allow for
adjustments in market conditions. FICC
proposes to amend this definition by (i)
Deleting the reference to ‘‘option
exercises’’ so that they are no longer
automatically considered to be Off-theMarket Transactions, (ii) establishing a
System Price 5 as the basis for
determining whether a transaction will
be an Off-the-Market Transactions, and
(iii) allowing FICC to establish the
percentage, based on factors such as
market conditions, by which the price of
a transaction must exceed or fall short
of the System Price in order to
constitute an Off-the-Market
Transaction.
(2) The Bond Market Association
The Bond Market Association
(‘‘BMA’’) has merged with the Securities
Industry Association to form the
Securities Industry and Financial
Markets Association (‘‘SIFMA’’). FICC is
proposing to revise the MBSD Clearing
Rules and MBSD EPN Rules to replace
references to the BMA and BMA
Guidelines with references to SIFMA
and SIFMA Guidelines.
(3) Omnibus Account Fees and Access
Fees
MBSD’s EPN Schedule of Charges
currently provides for Omnibus
Account fees and for Access fees. These
fees no longer exist. FICC is proposing
to amend the MBSD EPN Schedule of
Charges to delete the reference to
Omnibus Account fees and Access fees.
The proposed rule change is
consistent with section 17A of the Act,6
as amended, because it constitutes
technical changes that do not adversely
affect the safeguarding of securities or
4 The Commission has modified the text of the
summaries prepared by FICC.
5 Rule 1 defines System Price as ‘‘the uniform
price (expressed in dollars per unit of par value),
not including accrued interest, established by
[FICC] on each Business Day, based on current
market information, for each Eligible Netting
Security with a separate CUSIP Number.
Notwithstanding the above, the System Price for the
Generic CUSIP Number that underlies a GCF Net
Settlement Position shall be equal to principal
value.’’
6 15 U.S.C. 78q–1.
PO 00000
Frm 00084
Fmt 4703
Sfmt 4703
funds in the custody or control of FICC
or for which it is responsible.
(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 any written comments
received by FICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing
pursuant to section 19(b)(3)(A)(i) and
(ii) of the Act 7 and Rule 19b–4(f)(1) and
(2) 8 thereunder because the proposed
rule change constitutes a stated policy
and interpretation with respect to the
meaning of existing FICC rules and
changes a fee imposed by FICC. At any
time within sixty days of the filing of
the proposed rule change, the
Commission may summarily abrogate
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FICC–2007–07 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.
7 15
8 17
E:\FR\FM\09AUN1.SGM
U.S.C. 78s(b)(3)(A)(i) and (ii).
CFR 240.19b–4(f)(1) and (2).
09AUN1
Federal Register / Vol. 72, No. 153 / Thursday, August 9, 2007 / Notices
All submissions should refer to File
Number SR–FICC–2007–07. 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, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filings also will be
available for inspection and copying at
the principal office of FICC and on
FICC’s Web site at https://ficc.com/
commondocs/rule.filings/rule.filing.0707.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–2007–07 and should
be submitted on or before August 30,
2007.
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–15542 Filed 8–8–07; 8:45 am]
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 8,
2007, the International Securities
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
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 substantially prepared by the
ISE. On August 1, 2007, the Exchange
filed Amendment No. 1 to the proposed
rule change.3 The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as amended, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE proposes, on a one-year pilot
basis, a quote mitigation plan for the
Exchange’s Competitive Market Makers
(‘‘CMMs’’). The text of the proposed rule
change is available at ISE, the
Commission’s Public Reference Room,
and https://www.iseoptions.com.
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
ISE 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 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
BILLING CODE 8010–01–P
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on PROD1PC66 with NOTICES
[Release No. 34–56201; File No. SR–ISE–
2007–45]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing of Proposed Rule
Change as Modified by Amendment
No. 1 Thereto Relating to a Quote
Mitigation Plan for Competitive Market
Makers
August 3, 2007.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
9 17
CFR 200.30–3(a)(12).
VerDate Aug<31>2005
18:25 Aug 08, 2007
Jkt 211001
The Exchange is proposing a quote
mitigation plan for its CMMs on a pilot
basis for one (1) year in no more than
twenty (20) securities (‘‘Pilot Program
Securities’’) designated by the
Exchange. With the explosion of
quotation traffic—exacerbated by the
penny pilot—the Exchange continues to
seek ways to mitigate the generation of
quotations. At least two exchanges have
adopted quote mitigation plans that
relieve some market makers of the
obligation to quote in every series of
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 replaced the original filing in
its entirety.
2 17
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Frm 00085
Fmt 4703
Sfmt 4703
44903
every class of options in which they are
a market maker.4
Under ISE’s current rules, a CMM
must enter continuous quotations in all
the series of at least 60 percent of the
options classes for the group or ‘‘bin’’ to
which it is appointed, or 60 options
classes in the Group, whichever is less.
Further, once a CMM enters a quote in
an options class to which it is
appointed, it must continuously quote
in all series of that options class until
the close of trading that day. ISE
proposes to amend its rule so that a
CMM will be required to enter
continuous quotations in just 60 percent
of the series, rather than in all series, of
the options classes overlying the Pilot
Program Securities, to which the CMM
is appointed. Once a CMM enters a
quote in a series, it must continue to
quote in that series until the close of
trading that day. The Exchange notes
that ISE Rule 804(e)(2)(iii), which states
that a CMM may be called upon to
submit quotes in one or more series of
options to which it is appointed in the
interest of maintaining fair and orderly
markets, shall continue to apply under
the proposed pilot program.
Under the proposal, the Exchange will
issue a circular to CMMs identifying the
initial Pilot Program Securities. The
Exchange notes that the Pilot Program
Securities selected by the Exchange are
subject to change based on the quoting
activity in these securities. The
proposed pilot will consist of up to 20
of the most active classes, in terms of
the number of quotes generated, that are
in the Exchange’s Penny Pilot Program.5
Each time a change takes place in the
Pilot Program Securities, the Exchange
will issue circulars to notify CMMs of
this change and shall provide them with
adequate notice in order for them to
make any required systems changes.
The Exchange believes the proposed
pilot is a good first step towards
adopting an internal quote mitigation
plan that is beneficial both to the
Exchange and its members without
adversely affecting the quality of the
Exchange’s markets.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
section 6(b) of the Act,6 in general, and
furthers the objectives of section 6(b)(5)
4 See Phlx Rule 1014(b)(ii)(D)(1); see also Amex
Rule 994(c)(iv).
5 See Securities Exchange Act Release Nos. 55161
(January 24, 2007), 72 FR 4754 (February 1, 2007)
(SR–ISE–2006–62); 56151 (July 26, 2007), 72
FRlll (August lll, 2007) (SR–ISE–2007–68).
6 15 U.S.C. 78f(b).
E:\FR\FM\09AUN1.SGM
09AUN1
]]>Agencies
[Federal Register Volume 72, Number 153 (Thursday, August 9, 2007)]
[Notices]
[Pages 44902-44903]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15542]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56189; File No. SR-FICC-2007-07]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule To Make
Technical Changes To Update and Align Provisions With Current Practice
August 2, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 21, 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 proposal pursuant to section 19(b)(3)(A)(i) and
(ii) of the Act \2\ and Rule 19b-4(f)(1) and (2) \3\ thereunder so that
the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the rule
change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(i) and (ii).
\3\ 17 CFR 240.19b-4(f)(1) and (2).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the rule change is to make technical changes to
certain provisions of the Government Securities Division (``GSD'')
rules and the Mortgage-Backed Securities Division (``MBSD'') rules to
update and to align them with current practice.
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
(1) Off-the-Market Transactions
The definition of Off-the-Market Transactions in the GSD rules is
outdated and does not allow for adjustments in market conditions. FICC
proposes to amend this definition by (i) Deleting the reference to
``option exercises'' so that they are no longer automatically
considered to be Off-the-Market Transactions, (ii) establishing a
System Price \5\ as the basis for determining whether a transaction
will be an Off-the-Market Transactions, and (iii) allowing FICC to
establish the percentage, based on factors such as market conditions,
by which the price of a transaction must exceed or fall short of the
System Price in order to constitute an Off-the-Market Transaction.
---------------------------------------------------------------------------
\5\ Rule 1 defines System Price as ``the uniform price
(expressed in dollars per unit of par value), not including accrued
interest, established by [FICC] on each Business Day, based on
current market information, for each Eligible Netting Security with
a separate CUSIP Number. Notwithstanding the above, the System Price
for the Generic CUSIP Number that underlies a GCF Net Settlement
Position shall be equal to principal value.''
---------------------------------------------------------------------------
(2) The Bond Market Association
The Bond Market Association (``BMA'') has merged with the
Securities Industry Association to form the Securities Industry and
Financial Markets Association (``SIFMA''). FICC is proposing to revise
the MBSD Clearing Rules and MBSD EPN Rules to replace references to the
BMA and BMA Guidelines with references to SIFMA and SIFMA Guidelines.
(3) Omnibus Account Fees and Access Fees
MBSD's EPN Schedule of Charges currently provides for Omnibus
Account fees and for Access fees. These fees no longer exist. FICC is
proposing to amend the MBSD EPN Schedule of Charges to delete the
reference to Omnibus Account fees and Access fees.
The proposed rule change is consistent with section 17A of the
Act,\6\ as amended, because it constitutes technical changes that do
not adversely affect the safeguarding of securities or funds in the
custody or control of FICC or for which it is responsible.
---------------------------------------------------------------------------
\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 any written
comments received by FICC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to section 19(b)(3)(A)(i) and (ii) of the Act \7\ and Rule
19b-4(f)(1) and (2) \8\ thereunder because the proposed rule change
constitutes a stated policy and interpretation with respect to the
meaning of existing FICC rules and changes a fee imposed by FICC. At
any time within sixty days of the filing of the proposed rule change,
the Commission may summarily abrogate such rule change if it appears to
the Commission that such action is necessary or appropriate in the
public interest, for the protection of investors, or otherwise in
furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(i) and (ii).
\8\ 17 CFR 240.19b-4(f)(1) and (2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml) or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-FICC-2007-07 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.
[[Page 44903]]
All submissions should refer to File Number SR-FICC-2007-07. 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, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filings also will be available for
inspection and copying at the principal office of FICC and on FICC's
Web site at https://ficc.com/commondocs/rule.filings/rule.filing.07-
07.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-2007-07 and should be submitted on or before August 30, 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. E7-15542 Filed 8-8-07; 8:45 am]
BILLING CODE 8010-01-P
