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]

Download as PDF mstockstill on PROD1PC66 with NOTICES 68930 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. VerDate Aug<31>2005 18:57 Dec 05, 2007 Jkt 214001 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 PO 00000 Frm 00074 Fmt 4703 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. E:\FR\FM\06DEN1.SGM 06DEN1 Federal Register / Vol. 72, No. 234 / Thursday, December 6, 2007 / Notices 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’’). mstockstill on PROD1PC66 with NOTICES (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’’). VerDate Aug<31>2005 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 (http://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 E:\FR\FM\06DEN1.SGM 06DEN1 68932 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 (http://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 http:// 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). VerDate Aug<31>2005 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 06DEN1

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]


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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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will have any 
impact or impose any burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    Written comments relating to the proposed rule change have not 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 (http://
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 (http://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 
http://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\
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-23594 Filed 12-5-07; 8:45 am]
BILLING CODE 8011-01-P