Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Modify the Hearing Procedures Afforded to Members and Applicants for Membership and Harmonize Them With Similar Rules of Its Affiliates, 68930-68932 [E7-23594]
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Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices
calculated by Amex and published via
the facilities of the CTA on a 15-second
delayed basis throughout ISE’s trading
hours. As mentioned above, the Trust’s
Web site provides information relating
to the value of the Shares such as the
prior business day’s closing NAV, the
reported closing price, and daily trading
volume.
The Commission also believes that the
Exchange’s trading halt rules are
reasonably designed to prevent trading
in the Shares when transparency is
impaired. If the listing market halts
trading when the IIV is not being
calculated or disseminated, the
Exchange would halt trading in the
Shares pursuant to ISE Rule 2123(e).
The Commission notes that, if the
Shares should be delisted by the listing
exchange, the Exchange would no
longer have authority to trade the Shares
pursuant to this order.
In support of this proposal, the
Exchange has made the following
representations:
1. The Exchange believes that its
surveillance procedures are adequate to
properly monitor Exchange trading of
the Shares in all trading sessions and to
deter and detect violations of Exchange
rules.
2. Prior to the commencement of
trading, the Exchange would inform
EAMs in a Regulatory Information
Circular of the special characteristics
and risks associated with trading the
Shares.
3. ISE would require its members to
deliver a prospectus or product
description to investors purchasing the
Shares prior to or concurrently with a
transaction in the Shares.
This approval order is based on the
Exchange’s representations.
The Commission finds good cause for
approving this proposal before the
thirtieth day after the publication of
notice thereof in the Federal Register.
As noted previously, the Commission
previously found that the listing and
trading of the Shares on Amex is
consistent with the Act and that the
trading of the Shares pursuant to UTP
by NYSE Arca and Nasdaq is consistent
with the Act.22 The Commission
presently is not aware of any regulatory
issue that should cause it to revisit these
findings or would preclude the trading
of the Shares on the Exchange pursuant
to UTP. Therefore, accelerating approval
of this proposal should benefit investors
by creating, without undue delay,
additional competition in the market for
the Shares.
22 See
supra at notes 5 and 6.
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18:57 Dec 05, 2007
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V. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,23 that the
proposed rule change (SR–ISE–2007–
102) as modified by Amendment No. 1,
be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23611 Filed 12–5–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56865; File No. SR–NSCC–
2007–06]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing of
Proposed Rule Change To Modify the
Hearing Procedures Afforded to
Members and Applicants for
Membership and Harmonize Them
With Similar Rules of Its Affiliates
November 29, 2007.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 30,
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. 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 proposed rule change seeks (1) to
modify NSCC’s rules regarding hearing
procedures afforded to members and
applicants for membership and (2)
where practicable or beneficial, to
harmonize them with similar rules of
NSCC’s affiliates, The Depository Trust
Company (‘‘DTC’’) and the Fixed
Income Clearing Corporation (‘‘FICC’’).
23 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
24 17
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Sfmt 4703
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.3
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(1) Minor Rule Violation Plan
In 1984, the Commission adopted
amendments to Rule 19d–1(c) under the
Act 4 that allow self-regulatory
organizations to adopt with Commission
approval plans for the disposition of
minor violations of rules.5
Currently under NSCC’s rules, a
member or applicant subject to
disciplinary action has a right to a
hearing before a panel comprised of
members of NSCC’s Credit and Market
Risk Management Committee regardless
of the severity of the action for which
the member or applicant is being
disciplined.6 Because some rule
violations are not sufficiently serious to
merit Board review, NSCC is proposing
to adopt a Minor Rule Violation Plan
within the meaning of Rule 19d–1(c)(2)
of the Act for those rule violations
NSCC deems minor. Consistent with
Rule 19d–1(c)(2) of the Act, NSCC
would designate those rule violations
for which a fine may be assessed in an
amount not to exceed $5,000 as minor
rule violations. If a member were to
dispute a fine imposed by NSCC by
filing a written request for hearing and
a written statement, NSCC management
would have the authority to waive the
fine. NSCC management would notify
the Board of Directors (or a Committee
authorized by the Board of Directors) of
its determination to waive the fine and
would provide the reasons for the
3 The Commission has modified the text of the
summaries prepared by NSCC.
4 17 CFR 240.19d–1(c).
5 Securities Exchange Act Release No. 21013
(June 1, 1984), 49 FR 23828 (June 8, 1984) [File No.
S7–983A].
6 If the action or proposed action of NSCC as to
which the hearing relates has been taken or has
been proposed to be taken by the Credit and Market
Risk Management Committee, the members of the
panel shall be drawn from members of the
Executive Committee of NSCC’s Board of Directors.
See Rule 37 (Hearing Procedures), Section 2.
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waiver. The Board or Committee could
in its discretion decide to reinstate any
fine waived by NSCC management. If
NSCC management were not to waive
the fine, the member could appeal the
decision to a panel comprised of NSCC
officers (‘‘Minor Rule Violation Panel’’).
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(2) Hearings for All Other Violations
and Minor Rule Violation Appeals
For matters involving (i) an alleged
violation of an NSCC rule for which a
fine in an amount of over $5,000 is
assessed, (ii) applicants for membership,
or (iii) other disciplinary actions to
which the Minor Rule Violation Plan
would not apply or for appeals from a
Minor Rule Violation Panel decision
adverse to a member or applicant, the
member or applicant would be entitled
to a hearing before a panel comprised of
three individuals of the NSCC Board of
Directors (or their designees) appointed
by the Chairman of the NSCC Board.
Decisions of the panel would be final;
however, the full Board of Directors
would retain the right to modify any
sanction or reverse any decision of the
Board panel that was adverse to the
member or applicant.
Currently with respect to hearings, a
member or applicant is afforded the
opportunity to be heard and may be
represented by counsel if desired. A
record is kept of the hearing, and at the
discretion of the Board panel, the
associated cost may be charged in whole
or part to the member or application in
the event that the decision is adverse to
the member or applicant. The member
or applicant is advised of the Board
panel’s decision within ten business
days after the conclusion of the hearing.
These procedures would also apply
with respect to the Minor Rule Violation
Plan.
(3) Administrative Changes: Uniformity
of Time Frames
The proposed rule changes seek to
implement uniform time periods among
NSCC, DTC, and FICC governing actions
a member or applicant would be
required to take in order to request a
hearing. The deadlines a member or
applicant must adhere to in order to
request a hearing currently vary
between NSCC, DTC, and FICC. Under
the proposed rule change, a member or
applicant would have five business
days, or two business days in the case
of summary action taken against the
member or applicant pursuant to Rule
46,7 from the date on which NSCC first
informs it of a sanction or a denial of
7 Examples
of a summary action are a suspension
of a member or restriction of a member’s access to
services as described in Rule 46 (‘‘Restrictions on
Access to Services’’).
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18:57 Dec 05, 2007
Jkt 214001
membership in which to request a
hearing.
Within seven business days, or three
business days in the case of a summary
action being taken against the member
or applicant, after filing a request for a
hearing with NSCC, the member or
applicant would be required to submit
to NSCC a clear and concise written
statement setting forth the action or
proposed action of NSCC with respect to
which the hearing is requested, the basis
for objection to such action, whether the
member or applicant intends to attend
the hearing, and whether the member or
applicant chooses to be represented by
counsel at the hearing. These proposed
time frames would be consistent with
time frames being proposed by DTC and
FICC.
(4) Pending Changes From NSCC Rule
Filing SR–NSCC–2006–17
The current time frame for an
applicant or member to request a
hearing appears in the following rules:
Rule 2 (‘‘Members’’), Rule 3 (‘‘Lists to Be
Maintained’’), Rule 51 (‘‘Fund
Member’’), Rule 54 (‘‘Settling Bank Only
Members’’), Rule 56 (‘‘Insurance Carrier/
Retirement Services Member’’), and
Rule 60 (‘‘TPA Member’’).8 Each of
those rules is pending deletion as part
of rule filing SR–NSCC–2006–17.
Accordingly, in the event that this filing
is approved prior to SR–NSCC–2006–17,
the time frame for an applicant or
member to request a hearing that
appears in those rules will be deleted.
(5) Implementation of the Proposed
Changes
The proposed changes would be
implemented upon approval of this
proposed filing by the Commission.
Members would be advised of the
implementation through an NSCC
Important Notice.
NSCC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 9
and the rules and regulations
thereunder because the adoption of a
Minor Rule Violation Plan furthers the
statutory objective of providing a fair
procedure for disciplining members and
will provide NSCC with the ability to
impose meaningful sanctions for those
rule violations that do not necessarily
rise to a level meriting a full
disciplinary proceeding. Accordingly,
the proposed rule change promotes the
8 The current time frame for an applicant or
member to request a hearing also appears in Rule
45 (‘‘Notices’’). This proposed rule filing would
delete that reference also.
9 15 U.S.C. 78q–1.
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
68931
prompt and accurate clearance and
settlement of securities transactions.
(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 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
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
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–2007–06 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–2007–06. 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
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Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices
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 NSCC and on
NSCC’s Web site at https://
www.dtcc.com/downloads/legal/
rule_filings/2007/nscc/2007–06.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–2007–06 and should
be submitted on or before December 21,
2007.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.10
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7–23594 Filed 12–5–07; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–56851; File No. SR–NYSE–
2007–106]
mstockstill on PROD1PC66 with NOTICES
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change, as Modified by
Amendment No. 2, Relating to
Exchange Rule 103A(a)(3) To Address
Changes in the Way the Exchange
Delivers Education Programs to its
Members and To Clarify That the
Mandatory Education Requirement
Applies to All Individuals Qualified To
Use a Trading License
and Rule 19b–4 thereunder,2 notice is
hereby given that on November 16,
2007, the New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘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
Exchange. The NYSE has designated the
proposed rule change as one concerned
solely with the administration of the
Exchange pursuant to section
19(b)(3)(A)(iii) of the Act,3 and Rule
19b–4(f)(3) thereunder,4 which renders
the proposal effective upon filing with
the Commission. On November 26,
2007, the Exchange submitted
Amendment No. 1 to the proposed rule
change. The Exchange withdrew
Amendment No. 1 on November 27,
2007. The Exchange submitted
Amendment No. 2 to the proposed rule
change on November 27, 2007.5 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
NYSE is proposing to amend Rule
103A(a)(3) to address changes in the
way the Exchange delivers education
programs to its members and to clarify
that the mandatory education
requirement applies to all individuals
qualified to use a trading license, and
not just to members who are active on
the trading Floor.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NYSE 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. NYSE has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
November 28, 2007.
Pursuant to section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (‘‘Act’’)
10 17
1 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
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18:57 Dec 05, 2007
Jkt 214001
2 17
CFR 240.19b–4.
U.S.C. 78s(b)(3)(A)(ii).
4 17 CFR 240.19b–4(f)(3).
5 In Amendment No. 2, the Exchange made a
technical change to the rule text.
3 15
PO 00000
Frm 00076
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing to amend
NYSE Rule 103A to reflect certain
changes to how the Exchange delivers
its continuing education program, and
to reflect changes to the Exchange’s
membership structure, which affects
who must complete the program.
Since its inception, the Exchange’s
Floor Member Continuing Education
Program (‘‘FMCE Program’’), which
NYSE Regulation manages, has evolved
from providing semi-annual stand-up
presentations to delivering computerbased educational modules in a learning
laboratory. Because of limitations
associated with these delivery methods,
NYSE Regulation is currently upgrading
the FMCE Program to permit more
efficient and cost-effective delivery to
participants via the Internet.
In connection with these changes, the
Exchange is proposing to amend Rule
103A(a)(3) to remove the reference to
‘‘semi-annual’’ education programs, and
is proposing to shorten the time in
which program participants must
complete the program elements. In
addition, due to changes in the NYSE’s
membership structure, in which one
trading license may be used by multiple
qualified individuals over the course of
a year, the Exchange is proposing to
amend Rule 103A(a)(3) to clarify that
the education requirement applies to all
individuals qualified to use a trading
license, not just those who are actively
working as ‘‘members’’ on the Floor.
Background
NYSE Rule 103A requires the
Exchange to provide, and Exchange
Floor members to take, continuing
education. Over the years, the method
by which the Exchange delivered the
required education components has
evolved from in-person lectures to large
groups of members to individualized
computer-assisted training in a learning
laboratory setting. That evolution
reflected an ongoing assessment by the
Exchange of the most efficient way to
deliver timely continuing education and
training to a large group of Floor
members.
When the Exchange delivered the
FMCE Program in person or in a
learning laboratory, participants were
required to participate in these meetings
during extended business hours. The
current language of Rule 103A(a)(3)
reflects meeting room and laboratory
space limitations by requiring the
Exchange to deliver the FMCE Program
E:\FR\FM\06DEN1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 234 (Thursday, December 6, 2007)]
[Notices]
[Pages 68930-68932]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-23594]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-56865; File No. SR-NSCC-2007-06]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change To Modify the
Hearing Procedures Afforded to Members and Applicants for Membership
and Harmonize Them With Similar Rules of Its Affiliates
November 29, 2007.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on April 30, 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. 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\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change seeks (1) to modify NSCC's rules regarding
hearing procedures afforded to members and applicants for membership
and (2) where practicable or beneficial, to harmonize them with similar
rules of NSCC's affiliates, The Depository Trust Company (``DTC'') and
the Fixed Income Clearing Corporation (``FICC'').
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, 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.\3\
---------------------------------------------------------------------------
\3\ 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
(1) Minor Rule Violation Plan
In 1984, the Commission adopted amendments to Rule 19d-1(c) under
the Act \4\ that allow self-regulatory organizations to adopt with
Commission approval plans for the disposition of minor violations of
rules.\5\
---------------------------------------------------------------------------
\4\ 17 CFR 240.19d-1(c).
\5\ Securities Exchange Act Release No. 21013 (June 1, 1984), 49
FR 23828 (June 8, 1984) [File No. S7-983A].
---------------------------------------------------------------------------
Currently under NSCC's rules, a member or applicant subject to
disciplinary action has a right to a hearing before a panel comprised
of members of NSCC's Credit and Market Risk Management Committee
regardless of the severity of the action for which the member or
applicant is being disciplined.\6\ Because some rule violations are not
sufficiently serious to merit Board review, NSCC is proposing to adopt
a Minor Rule Violation Plan within the meaning of Rule 19d-1(c)(2) of
the Act for those rule violations NSCC deems minor. Consistent with
Rule 19d-1(c)(2) of the Act, NSCC would designate those rule violations
for which a fine may be assessed in an amount not to exceed $5,000 as
minor rule violations. If a member were to dispute a fine imposed by
NSCC by filing a written request for hearing and a written statement,
NSCC management would have the authority to waive the fine. NSCC
management would notify the Board of Directors (or a Committee
authorized by the Board of Directors) of its determination to waive the
fine and would provide the reasons for the
[[Page 68931]]
waiver. The Board or Committee could in its discretion decide to
reinstate any fine waived by NSCC management. If NSCC management were
not to waive the fine, the member could appeal the decision to a panel
comprised of NSCC officers (``Minor Rule Violation Panel'').
---------------------------------------------------------------------------
\6\ If the action or proposed action of NSCC as to which the
hearing relates has been taken or has been proposed to be taken by
the Credit and Market Risk Management Committee, the members of the
panel shall be drawn from members of the Executive Committee of
NSCC's Board of Directors. See Rule 37 (Hearing Procedures), Section
2.
---------------------------------------------------------------------------
(2) Hearings for All Other Violations and Minor Rule Violation Appeals
For matters involving (i) an alleged violation of an NSCC rule for
which a fine in an amount of over $5,000 is assessed, (ii) applicants
for membership, or (iii) other disciplinary actions to which the Minor
Rule Violation Plan would not apply or for appeals from a Minor Rule
Violation Panel decision adverse to a member or applicant, the member
or applicant would be entitled to a hearing before a panel comprised of
three individuals of the NSCC Board of Directors (or their designees)
appointed by the Chairman of the NSCC Board. Decisions of the panel
would be final; however, the full Board of Directors would retain the
right to modify any sanction or reverse any decision of the Board panel
that was adverse to the member or applicant.
Currently with respect to hearings, a member or applicant is
afforded the opportunity to be heard and may be represented by counsel
if desired. A record is kept of the hearing, and at the discretion of
the Board panel, the associated cost may be charged in whole or part to
the member or application in the event that the decision is adverse to
the member or applicant. The member or applicant is advised of the
Board panel's decision within ten business days after the conclusion of
the hearing. These procedures would also apply with respect to the
Minor Rule Violation Plan.
(3) Administrative Changes: Uniformity of Time Frames
The proposed rule changes seek to implement uniform time periods
among NSCC, DTC, and FICC governing actions a member or applicant would
be required to take in order to request a hearing. The deadlines a
member or applicant must adhere to in order to request a hearing
currently vary between NSCC, DTC, and FICC. Under the proposed rule
change, a member or applicant would have five business days, or two
business days in the case of summary action taken against the member or
applicant pursuant to Rule 46,\7\ from the date on which NSCC first
informs it of a sanction or a denial of membership in which to request
a hearing.
---------------------------------------------------------------------------
\7\ Examples of a summary action are a suspension of a member or
restriction of a member's access to services as described in Rule 46
(``Restrictions on Access to Services'').
---------------------------------------------------------------------------
Within seven business days, or three business days in the case of a
summary action being taken against the member or applicant, after
filing a request for a hearing with NSCC, the member or applicant would
be required to submit to NSCC a clear and concise written statement
setting forth the action or proposed action of NSCC with respect to
which the hearing is requested, the basis for objection to such action,
whether the member or applicant intends to attend the hearing, and
whether the member or applicant chooses to be represented by counsel at
the hearing. These proposed time frames would be consistent with time
frames being proposed by DTC and FICC.
(4) Pending Changes From NSCC Rule Filing SR-NSCC-2006-17
The current time frame for an applicant or member to request a
hearing appears in the following rules: Rule 2 (``Members''), Rule 3
(``Lists to Be Maintained''), Rule 51 (``Fund Member''), Rule 54
(``Settling Bank Only Members''), Rule 56 (``Insurance Carrier/
Retirement Services Member''), and Rule 60 (``TPA Member'').\8\ Each of
those rules is pending deletion as part of rule filing SR-NSCC-2006-17.
Accordingly, in the event that this filing is approved prior to SR-
NSCC-2006-17, the time frame for an applicant or member to request a
hearing that appears in those rules will be deleted.
---------------------------------------------------------------------------
\8\ The current time frame for an applicant or member to request
a hearing also appears in Rule 45 (``Notices''). This proposed rule
filing would delete that reference also.
---------------------------------------------------------------------------
(5) Implementation of the Proposed Changes
The proposed changes would be implemented upon approval of this
proposed filing by the Commission. Members would be advised of the
implementation through an NSCC Important Notice.
NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \9\ and the rules and
regulations thereunder because the adoption of a Minor Rule Violation
Plan furthers the statutory objective of providing a fair procedure for
disciplining members and will provide NSCC with the ability to impose
meaningful sanctions for those rule violations that do not necessarily
rise to a level meriting a full disciplinary proceeding. Accordingly,
the proposed rule change promotes the prompt and accurate clearance and
settlement of securities transactions.
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\9\ 15 U.S.C. 78q-1.
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(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 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
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
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-2007-06 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-2007-06. 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
[[Page 68932]]
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 NSCC and on NSCC's Web site at
https://www.dtcc.com/downloads/legal/rule_filings/2007/nscc/2007-
06.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-2007-06 and should be submitted on or before December 21, 2007.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23594 Filed 12-5-07; 8:45 am]
BILLING CODE 8011-01-P
