Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Allow As-Of Fixed Income Trades To Be Processed in the Continuous Net Settlement System, 46528-46529 [E7-16329]
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46528
Federal Register / Vol. 72, No. 160 / Monday, August 20, 2007 / Notices
and aligns revenue collected from
members with license costs charged to
ISE under its agreement with Russell.
IV. Conclusion
It is therefore ordered, pursuant to
section 19(b)(2) of the Act, that the
proposed rule change (SR–ISE–2007–49)
is approved.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–16258 Filed 8–17–07; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56250; File No. SR–NSCC–
2007–11]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing of
Proposed Rule Change To Allow As-Of
Fixed Income Trades To Be Processed
in the Continuous Net Settlement
System
August 14, 2007.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
July 12, 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 by NSCC. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested parties.
pwalker on PROD1PC71 with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
NSCC is seeking to modify its
procedures to allow as-of fixed income
trades to be processed in NSCC’s
Continuous Net Settlement (‘‘CNS’’)
system.
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
10 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
VerDate Aug<31>2005
16:53 Aug 17, 2007
Jkt 211001
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.2
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
When NSCC revised and updated
CNS in 2004 (referred to as the ‘‘CNS
Rewrite’’), it provided the capability on
any settlement day to take in and
process transactions due for settlement
that day provided the trades are
recorded or compared prior to an
established cut-off time in the morning.3
This capability is currently provided for
as-of equity transactions but has not yet
been expanded to as-of fixed income
transactions.4 Rather, settlement of as-of
fixed income corporate debt, municipal,
and unit investment trust (‘‘UIT’’) trades
(corporate debt, municipal, and UIT
trades are collectively referred to as
‘‘CMU’’ trades) matched on or after their
designated settlement date currently
occurs on the business day following
the day they are compared. Given that
settlement risks associated with CMU
trades would be reduced if they settled
on an accelerated basis in the same
manner that as-of equity trades are
settled, NSCC is proposing to enhance
its fixed income processing to permit
same day settlement of as-of fixed
income transactions.5 To accomplish
this, NSCC proposes to amend
Procedure II (Trade Comparison and
Recording Service) so that CNS-eligible
as-of CMU trades matched on or after
their originally designated settlement
date would be processed in CNS on the
day they are submitted for comparison
so long as they compare prior to the cutoff time established for same day
settlement, which currently is 11:30
a.m.6 As-of trades not eligible for CNS
processing will settle on a trade-fortrade basis. Trades that match after the
designated cut-off time will continue to
be assigned a settlement date on the
next business day.
In addition, because these trades are
effectively guaranteed upon
2 The Commission has modified the text of the
summaries prepared by NSCC.
3 Securities Exchange Act Release No. 50026 (July
15, 2004), 69 FR 43650 [File No. SR–NSCC–2004–
01].
4 NSCC’s systems did not have the capacity for
same day settling trades for fixed income
transactions in 2004.
5 The settlement of cash and next day CMU trades
which are compared by NSCC will continue to be
the responsibility of the parties to the trades.
6 In addition, references in Procedure VII (CNS
Accounting Operation) that currently note that debt
securities are not eligible for such accelerated
settlement would be removed.
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
comparison, risk associated with the
trades will be mitigated through the
existing component of the Clearing
Fund formula, as set forth in Procedure
XV (Clearing Fund Formula and Other
Matters), that is designed to mitigate the
risk to NSCC associated with trades that
are processed on a settlement cycle
shorter than three days. Under this
component, activity specified for a
shortened settlement cycle is isolated
and a charge is calculated.7
NSCC believes that 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
it should facilitate the prompt and
accurate clearance and settlement of
securities by increasing automated trade
processing and by expanding the types
of trades eligible for CNS netting.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
NSCC does not believe that the
proposed rule change would 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 were not and are
not intended to be solicited with respect
to the proposed rule change, and none
have been received. NSCC will notify
the Commission of any written
comments it receives.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
As the Commission may designate up to
ninety days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(a) By order approve such proposed
rule change, or
(b) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
7 The component calculates a charge based on the
average of a member’s charges for the specified
activity on the three days with the highest charges
calculated for the specified activity over the most
recent twenty day period. Securities Exchange Act
Release No. 54816 (November 27, 2006), 71 FR
69604 [File No. SR–NSCC–2006–09].
8 15 U.S.C. 78q–1.
E:\FR\FM\20AUN1.SGM
20AUN1
Federal Register / Vol. 72, No. 160 / Monday, August 20, 2007 / Notices
arguments concerning the foregoing,
including whether the proposed rule
change, as amended, is consistent with
the Act. Comments may be submitted by
any of the following methods:
Electronic Comments
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–16329 Filed 8–17–07; 8:45 am]
BILLING CODE 8010–01–P
• 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–2007–11 on the
subject line.
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities; Proposed Request and
Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages that will require
• Send paper comments in triplicate
clearance by the Office of Management
to Nancy M. Morris, Secretary,
and Budget (OMB) in compliance with
Securities and Exchange Commission,
Public Law 104–13, the Paperwork
100 F Street, NE., Washington, DC
Reduction Act of 1995, effective October
20549–1090.
1, 1995. The information collection
packages that may be included in this
All submissions should refer to File
notice are for new information
Number SR–NSCC–2007–11. This file
collections, approval of existing
number should be included on the
information collections, revisions to
subject line if e-mail is used. To help the OMB-approved information collections,
Commission process and review your
and extensions (no change) of OMBcomments more efficiently, please use
approved information collections.
only one method. The Commission will
SSA is soliciting comments on the
post all comments on the Commission’s accuracy of the agency’s burden
Internet Web site (https://www.sec.gov/
estimate; the need for the information;
rules/sro.shtml). Copies of the
its practical utility; ways to enhance its
submission, all subsequent
quality, utility, and clarity; and on ways
to minimize burden on respondents,
amendments, all written statements
including the use of automated
with respect to the proposed rule
collection techniques or other forms of
change that are filed with the
information technology. Written
Commission, and all written
comments and recommendations
communications relating to the
regarding the information collection(s)
proposed rule change between the
Commission and any person, other than should be submitted to the OMB Desk
Officer and the SSA Reports Clearance
those that may be withheld from the
Officer. The information can be mailed,
public in accordance with the
faxed or e-mailed to the individuals at
provisions of 5 U.S.C. 552, will be
the addresses and fax numbers listed
available for inspection and copying in
below:
the Commission’s Public Reference
(OMB), Office of Management and
Section, 100 F Street, NE., Washington,
Budget, Attn: Desk Officer for SSA,
DC 20549, on official business days
Fax: 202–395–6974, E-mail address:
between the hours of 10 a.m. and 3 p.m.
OIRA_Submission@omb.eop.gov.
Copies of such filing also will be
(SSA), Social Security Administration,
available for inspection and copying at
DCBFM, Attn: Reports Clearance
the principal office of NSCC and on
Officer, 1333 Annex Building, 6401
NSCC’s Web site at www.nscc.com/
Security Blvd., Baltimore, MD 21235,
legal. All comments received will be
Fax: 410–965–6400, E-mail address:
posted without change; the Commission
OPLM.RCO@ssa.gov.
does not edit personal identifying
I
information from submissions. You
The information collections listed
should submit only information that
you wish to make available publicly. All below are pending at SSA and will be
submitted to OMB within 60 days from
submissions should refer to File
Number SR–NSCC–2007–11 and should the date of this notice. Therefore, your
be submitted on or before September 10, comments should be submitted to SSA
within 60 days from the date of this
2007.
publication. You can obtain copies of
the collection instruments by calling the
pwalker on PROD1PC71 with NOTICES
Paper Comments
9 17
VerDate Aug<31>2005
16:53 Aug 17, 2007
Jkt 211001
PO 00000
CFR 200.30–3(a)(12).
Frm 00093
Fmt 4703
Sfmt 4703
46529
SSA Reports Clearance Officer at 410–
965–0454 or by writing to the address
listed above.
1. Incorporation by Reference of Oral
Findings of Fact and Rationale in
Wholly Favorable Written Decisions
(Bench Decision Regulation)—20 CFR
404.953 and 416.1453—0960–0694.
Sections 20 CFR 404.953 and 416.1453
of our regulations state that if an
Administrative Law Judge makes a
wholly favorable oral decision for a
claimant of Title II or Title XVI
payments at an administrative appeals
hearing, and if this oral decision
includes all findings and the rationale
for the decision, the records from the
oral hearing preclude the need for a
written decision. This is known as the
incorporation-by-reference process.
These regulations also state that if the
involved parties want a record of the
oral decision, they may submit a written
request for these records.
Type of Request: Extension of an
OMB-approved information collection.
Number of Respondents: 2,500.
Frequency of Response: 1.
Average Burden per Response: 5
minutes.
Estimated Annual Burden: 208 hours.
2. Request for Proof(s) from Custodian
of Records—20 CFR 404.703, 404.704,
404.720, 404.721, 404.723, 404.725, &
404.728—0960–NEW. SSA prepares the
SSA–L707 for individuals who need
help in obtaining evidence of death,
marriage, or divorce in connection with
claims for benefits. The information
collected on the SSA–L707 is used to
request and receive the needed
evidence. The respondents are
custodians of records including
statistics and religious entities,
coroners, funeral directors, attending
physicians, state agencies, etc.
Type of Request: Information
Collection in Use Without an OMB
Number.
Number of Respondents: 600.
Frequency of Response: 1.
Average Burden per Response: 10
minutes.
Estimated Annual Burden: 100 hours.
3. Request for Evidence from Doctor
or Hospital—20 CFR 404 Subpart I and
20 CFR 416 Subpart P—0960–0722.
Claimants are required to provide
medical evidence of their impairment(s)
in pursuing a disability claim. SSA uses
these forms to request medical evidence
from sources (doctors and hospitals)
where the claimant has been treated,
seen or otherwise evaluated. The
respondents are doctors and hospitals
where the claimant has been evaluated.
Type of Request: Revision of an OMBapproved information collection.
Number of Responses: 400,000.
E:\FR\FM\20AUN1.SGM
20AUN1
]]>Agencies
[Federal Register Volume 72, Number 160 (Monday, August 20, 2007)]
[Notices]
[Pages 46528-46529]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-16329]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56250; File No. SR-NSCC-2007-11]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change To Allow As-Of
Fixed Income Trades To Be Processed in the Continuous Net Settlement
System
August 14, 2007.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 12, 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 by NSCC. 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).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NSCC is seeking to modify its procedures to allow as-of fixed
income trades to be processed in NSCC's Continuous Net Settlement
(``CNS'') system.
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.\2\
---------------------------------------------------------------------------
\2\ 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
When NSCC revised and updated CNS in 2004 (referred to as the ``CNS
Rewrite''), it provided the capability on any settlement day to take in
and process transactions due for settlement that day provided the
trades are recorded or compared prior to an established cut-off time in
the morning.\3\ This capability is currently provided for as-of equity
transactions but has not yet been expanded to as-of fixed income
transactions.\4\ Rather, settlement of as-of fixed income corporate
debt, municipal, and unit investment trust (``UIT'') trades (corporate
debt, municipal, and UIT trades are collectively referred to as ``CMU''
trades) matched on or after their designated settlement date currently
occurs on the business day following the day they are compared. Given
that settlement risks associated with CMU trades would be reduced if
they settled on an accelerated basis in the same manner that as-of
equity trades are settled, NSCC is proposing to enhance its fixed
income processing to permit same day settlement of as-of fixed income
transactions.\5\ To accomplish this, NSCC proposes to amend Procedure
II (Trade Comparison and Recording Service) so that CNS-eligible as-of
CMU trades matched on or after their originally designated settlement
date would be processed in CNS on the day they are submitted for
comparison so long as they compare prior to the cut-off time
established for same day settlement, which currently is 11:30 a.m.\6\
As-of trades not eligible for CNS processing will settle on a trade-
for-trade basis. Trades that match after the designated cut-off time
will continue to be assigned a settlement date on the next business
day.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 50026 (July 15, 2004),
69 FR 43650 [File No. SR-NSCC-2004-01].
\4\ NSCC's systems did not have the capacity for same day
settling trades for fixed income transactions in 2004.
\5\ The settlement of cash and next day CMU trades which are
compared by NSCC will continue to be the responsibility of the
parties to the trades.
\6\ In addition, references in Procedure VII (CNS Accounting
Operation) that currently note that debt securities are not eligible
for such accelerated settlement would be removed.
---------------------------------------------------------------------------
In addition, because these trades are effectively guaranteed upon
comparison, risk associated with the trades will be mitigated through
the existing component of the Clearing Fund formula, as set forth in
Procedure XV (Clearing Fund Formula and Other Matters), that is
designed to mitigate the risk to NSCC associated with trades that are
processed on a settlement cycle shorter than three days. Under this
component, activity specified for a shortened settlement cycle is
isolated and a charge is calculated.\7\
---------------------------------------------------------------------------
\7\ The component calculates a charge based on the average of a
member's charges for the specified activity on the three days with
the highest charges calculated for the specified activity over the
most recent twenty day period. Securities Exchange Act Release No.
54816 (November 27, 2006), 71 FR 69604 [File No. SR-NSCC-2006-09].
---------------------------------------------------------------------------
NSCC believes that 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 it should facilitate
the prompt and accurate clearance and settlement of securities by
increasing automated trade processing and by expanding the types of
trades eligible for CNS netting.
---------------------------------------------------------------------------
\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 would 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 were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received. NSCC
will notify the Commission of any written comments it receives.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) As the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
(a) By order approve such proposed rule change, or
(b) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
[[Page 46529]]
arguments concerning the foregoing, including whether the proposed rule
change, as amended, 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-2007-11 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-2007-11. 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 filing also will be available for
inspection and copying at the principal office of NSCC and on NSCC's
Web site at www.nscc.com/legal. 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-2007-11 and should be submitted on or before
September 10, 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. E7-16329 Filed 8-17-07; 8:45 am]
BILLING CODE 8010-01-P
