Self-Regulatory Organizations; National Securities Clearing Corporation; Order Approving Proposed Rule Change To Modify the Hearing Procedures Afforded to Members and Applicants for Membership and Harmonize Them With Similar Rules of Its Affiliates, 12242-12244 [E8-4340]

Download as PDF 12242 Federal Register / Vol. 73, No. 45 / Thursday, March 6, 2008 / Notices Valores (‘‘Bolsa’’) to enter into a surveillance sharing agreement. 2. Statutory Basis The proposed rule change is consistent with the provisions of Section 6 of the Act,6 in general, and with Section 6(b)(5) of the Act,7 in particular, in that the proposal is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, and, in general, to protect investors and the public interest. B. Self-Regulatory Organization’s Statement on Burden on Competition ISE does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received from Members, Participants or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 8 and Rule 19b– 4(f)(6) thereunder.9 A proposed rule change filed under 19b–4(f)(6) normally may not become operative prior to 30 days after the date of filing.10 However, Rule 19b– 4(f)(6)(iii) 11 permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay. The Commission believes that waiving the 30-day operative delay is consistent with the protection of 6 15 U.S.C. 78f. U.S.C. 78f(b)(5). 8 15 U.S.C. 78s(b)(3)(A). 9 17 CFR 240.19b–4(f)(6). 10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. ISE has complied with this requirement. 11 Id. mstockstill on PROD1PC66 with NOTICES 7 15 VerDate Aug<31>2005 16:57 Mar 05, 2008 Jkt 214001 investors and the public interest.12 Waiver of the 30-day operative period will extend the pilot program until August 27, 2008, which would otherwise expire on February 27, 2008, and allow the ISE to continue in its efforts to obtain a surveillance agreement with Bolsa. Accordingly, the Commission hereby grants the Exchange’s request and designates the proposal as operative upon filing. At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File No. SR–ISE–2008–10 on the subject line. Paper Comments • Send paper comments in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–ISE–2008–10. 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 (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 12 For purposes only of waiving the 30-day operative delay of this proposal, the Commission has considered the proposed rule’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). PO 00000 Frm 00173 Fmt 4703 Sfmt 4703 public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 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 ISE. 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–ISE– 2008–10 and should be submitted on or before March 27, 2008. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–4314 Filed 3–5–08; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–57404; File No. SR–NSCC– 2007–06] Self-Regulatory Organizations; National Securities Clearing Corporation; Order Approving Proposed Rule Change To Modify the Hearing Procedures Afforded to Members and Applicants for Membership and Harmonize Them With Similar Rules of Its Affiliates February 29, 2008. I. Introduction On April 30, 2007, the National Securities Clearing Corporation (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) proposed rule change SR–NSCC–2007– 06 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’).1 The proposed rule change was published for comment in the Federal Register on December 6, 2007.2 No comment letters were received on the proposal. This order approves the proposal. II. Description The proposed rule change (1) modifies NSCC’s rules regarding hearing procedures afforded to members and applicants for membership and (2) where practicable or beneficial, 13 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 Securities Exchange Act Release No. 56865 (Nov. 29, 2007), 72 FR 68930. 1 15 E:\FR\FM\06MRN1.SGM 06MRN1 Federal Register / Vol. 73, No. 45 / Thursday, March 6, 2008 / Notices harmonizes such rules with similar rules of NSCC’s affiliates, The Depository Trust Company (‘‘DTC’’) and the Fixed Income Clearing Corporation (‘‘FICC’’).3 A. Minor Rule Violation Plan mstockstill on PROD1PC66 with NOTICES In 1984, the Commission adopted amendments to Rule 19d–1(c) under the Act 4 that allow self-regulatory organizations with Commission approval to adopt 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 adopting a Minor Rule Violation Plan within the meaning of Rule 19d–1(c)(2) under the Act for those rule violations NSCC deems minor. Consistent with Rule 19d–1(c)(2) under the Act, NSCC is designating as minor rule violations those rule violations for which a fine may be assessed in an amount not to exceed $5,000. If a member disputes a fine imposed by NSCC by filing a written request for hearing and a written statement setting forth, among other things, the action or proposed action with respect to which a hearing is being requested and the basis for the objection to such action, 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 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 3 DTC and FICC have filed similar proposed rule changes. Securities Exchange Act Release No. 56863 (Nov. 29, 2007), 72 FR 68920, Securities Exchange Act Release No. 57406 (Feb. 29, 2008) [SR–DTC– 2007–06]. Securities Exchange Act Release No. 56864 (Nov. 29, 2007), 72 FR 68922, Securities Exchange Act Release No. 57405 (Feb. 29, 2008) [SR–FICC–2007–06]. 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. VerDate Aug<31>2005 16:57 Mar 05, 2008 Jkt 214001 decision to a panel comprised of NSCC officers (‘‘Minor Rule Violation Panel’’). B. Hearings for All Other Violations and Minor Rule Violation Appeals For matters involving (1) an alleged violation of an NSCC rule for which a fine in an amount of over $5,000 is assessed, (2) applicants for membership, (3) other disciplinary actions to which the Minor Rule Violation Plan would not apply, or (4) appeals from a Minor Rule Violation Panel decision adverse to a member or applicant, the member or applicant is 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 are final; however, the full Board of Directors retains the right to modify any sanction or reverse any decision of the panel that is 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 panel, the associated cost may be charged in whole or part to the member or applicant in the event that the decision is adverse to the member or applicant. The member or applicant is advised of the 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. C. Administrative Changes: Uniformity of Time Frames The rule changes will 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.7 Under the rule change, a member or applicant has five business days, or two business days in the case of a summary action taken against the member or applicant pursuant to Rule 46,8 from the date on which NSCC first informs it of a sanction or a denial of membership in which to request a hearing. Within seven business days, or three business days in the case of a summary action taken against the member or applicant, after filing a request for a 7 DTC rules do not impose an accelerated deadline for an Interested Person to request a hearing in the case of summary action taken against the Interested Person. A summary action is an action taken prior to a hearing to determine the propriety of the action. 8 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’’). PO 00000 Frm 00174 Fmt 4703 Sfmt 4703 12243 hearing with NSCC, the member or applicant is 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. D. 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’’).9 Each of those rules is pending deletion as part of rule filing SR–NSCC–2006–17. Accordingly, since this filing is approved prior to the approval of SR– NSCC–2006–17, the time frame for an applicant or member to request a hearing that appears in those rules is also deleted. III. Discussion The Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a registered clearing agency. In particular, the Commission believes the proposal is consistent with the requirements of Section 17A(b)(3)(F),10 which, among other things, requires that the rules of a clearing agency are designed to remove impediments to and perfect the mechanisms of a national system for the prompt and accurate clearance and settlement of securities transactions and with the requirements of Section 17A(b)(3)(H) 11 which, among other things, requires that the rules of a clearing agency provide a fair procedure with respect to the disciplining of participants and the denial of participation to any person seeking to be a participant. The Commission finds that the proposed rule change, which harmonizes NSCC’s hearing procedure rules with those of DTC and FICC and which adopts a Minor Rule Violation Plan, is consistent with those statutory obligations. 9 The current time frame for an applicant or member to request a hearing also appears in Rule 45 (‘‘Notices’’). This rule filing deletes that reference also. 10 15 U.S.C. 78q–1(b)(3)(F). 11 15 U.S.C. 78q–1(b)(3)(H). E:\FR\FM\06MRN1.SGM 06MRN1 12244 Federal Register / Vol. 73, No. 45 / Thursday, March 6, 2008 / Notices IV. Conclusion On the basis of the foregoing, the Commission finds that the proposal is consistent with the requirements of the Act and in particular with the requirements of Section 17A of the Act 12 and the rules and regulations thereunder. It is therefore ordered, pursuant to Section 19(b)(2) of the Act,13 that the proposed rule change (File No. SR– NSCC–2007–06) be, and hereby is, approved.14 For the Commission by the Division of Trading and Markets, pursuant to delegated authority.15 Florence E. Harmon, Deputy Secretary. [FR Doc. E8–4340 Filed 3–5–08; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION Small Business Size Standards: Waiver of the Nonmanufacturer Rule U.S. Small Business Administration. ACTION: Notice of intent to Waive the Nonmanufacturer Rule for All Other Miscellaneous Electrical Equipment and Component Manufacturing. AGENCY: mstockstill on PROD1PC66 with NOTICES SUMMARY: The U. S. Small Business Administration (SBA) is considering granting a request for a waiver of the Nonmanufacturer Rule for All Other Miscellaneous Electrical Equipment and Component Manufacturing. According to the request, no small business manufacturers supply these classes of products to the Federal government. If granted, the waiver would allow otherwise qualified regular dealers to supply the products of any domestic manufacturer on a Federal contract set aside for small businesses; servicedisabled veteran-owned small businesses or SBA’s 8(a) Business Development Program. DATES: Comments and source information must be submitted March 21, 2008. ADDRESSES: You may submit comments and source information to Pamela M. McClam, Program Analyst, U.S. Small Business Administration, Office of Government Contracting, 409 3rd Street, SW., Suite 8800, Washington, DC 20416. 12 15 U.S.C. 78q–1. U.S.C. 78s(b)(2). 14 In approving the proposed rule change, the Commission considered the proposal’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12). FOR FURTHER INFORMATION CONTACT: Pamela M. McClam, Program Analyst, by telephone at (202) 205–7408; by FAX at (202) 481–4783; or by e-mail at Pamela.McClam@sba.gov. Section 8(a)(17) of the Small Business Act (Act), 15 U.S.C. 637(a)(17), requires that recipients of Federal contracts set aside for small businesses, service-disabled veteran-owned small businesses, or SBA’s 8(a) Business Development Program provide the product of a small business manufacturer or processor, if the recipient is other than the actual manufacturer or processor of the product. This requirement is commonly referred to as the Nonmanufacturer Rule. The SBA regulations imposing this requirement are found at 13 CFR 121.406(b). Section 8(a)(17)(b)(iv) of the Act authorizes SBA to waive the Nonmanufacturer Rule for any ‘‘class of products’’ for which there are no small business manufacturers or processors available to participate in the Federal market. As implemented in SBA’s regulations at 13 CFR 121.1202(c), in order to be considered available to participate in the Federal market for a class of products, a small business manufacturer must have submitted a proposal for a contract solicitation or received a contract from the Federal government within the last 24 months. The SBA defines ‘‘class of products’’ based on six digit coding system. The coding system is the Office of Management and Budget North American Industry Classification System (NAICS). The SBA is currently processing a request to waive the Nonmanufacturer Rule for All Other Miscellaneous Electrical Equipment and Component Manufacturing. North American Industry Classification System (NAICS) code 335999 product number (6210). The public is invited to comment or provide source information to SBA on the proposed waivers of the Nonmanufacturer Rule for this class of NAICS code within 15 days after date of publication in the Federal Register. SUPPLEMENTARY INFORMATION: Arthur E. Collins, Jr., Director for Government Contracting. [FR Doc. E8–4372 Filed 3–5–08; 8:45 am] BILLING CODE 8025–01–P 13 15 VerDate Aug<31>2005 16:57 Mar 05, 2008 Jkt 214001 PO 00000 Frm 00175 Fmt 4703 Sfmt 4703 DEPARTMENT OF STATE [Public Notice 6116] Bureau of Educational and Cultural Affairs (ECA) Request for Grant Proposals: Ngwang Choepel Fellows Program Announcement Type: New Grant. Funding Opportunity Number: ECA/ PE/C/WHA/EAP–08–53. Catalog of Federal Domestic Assistance Number: 00.000. Key Dates: Application Deadline: May 9, 2008. Executive Summary: The Office of Citizen Exchanges welcomes proposals in an open competition for the Ngwang Choepel Fellows program that focus on the themes of Cultural Preservation and Economic Self-sufficiency. The Office seeks proposals that train and assist Tibetans living in Tibetan communities in China by providing professional experience and exposure to American society and culture through internships, workshops and other learning activities hosted by U.S. institutions. The experiences will also provide Americans the opportunity to learn about Tibetan culture and the social and economic challenges that Tibetans face today. Applicants may propose programming for Tibetans who travel to the United States and/or for Americans who travel to Tibet. Programs designed for participants from Tibet should not be simply academic in nature, but should provide practical, hands-on experience in U.S. public or private sector settings that may be adapted to an individual’s institution upon return home. Proposals may combine elements of professional enrichment, job shadowing and internships appropriate to the language ability and interests of the participants. Americans who travel to Tibet will be expected to participate in activities that further the goals and objectives of the Tibet Policy Act of 2002, as described below. Applicants should ensure that their proposals comply with the Tibet Policy Act of 2002, particularly that their projects promote in all stages the active participation of Tibetans. Section 616(d) of the Foreign Relations Authorization Act, 2003 (Pub. L. 107–228) defines the Tibet Project Principles: (d) Tibet Project Principles—Projects in Tibet supported by international financial institutions, other international organizations, nongovernmental organizations, and the United States entities referred to in subsection (c), should (1) Be implemented only after conducting a thorough assessment of the needs of the E:\FR\FM\06MRN1.SGM 06MRN1

Agencies

[Federal Register Volume 73, Number 45 (Thursday, March 6, 2008)]
[Notices]
[Pages 12242-12244]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-4340]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57404; File No. SR-NSCC-2007-06]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Order Approving Proposed Rule Change To Modify the Hearing 
Procedures Afforded to Members and Applicants for Membership and 
Harmonize Them With Similar Rules of Its Affiliates

February 29, 2008.

I. Introduction

    On April 30, 2007, the National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission'') proposed rule change SR-NSCC-2007-06 pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'').\1\ 
The proposed rule change was published for comment in the Federal 
Register on December 6, 2007.\2\ No comment letters were received on 
the proposal. This order approves the proposal.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 56865 (Nov. 29, 2007), 
72 FR 68930.
---------------------------------------------------------------------------

II. Description

    The proposed rule change (1) modifies NSCC's rules regarding 
hearing procedures afforded to members and applicants for membership 
and (2) where practicable or beneficial,

[[Page 12243]]

harmonizes such rules with similar rules of NSCC's affiliates, The 
Depository Trust Company (``DTC'') and the Fixed Income Clearing 
Corporation (``FICC'').\3\
---------------------------------------------------------------------------

    \3\ DTC and FICC have filed similar proposed rule changes. 
Securities Exchange Act Release No. 56863 (Nov. 29, 2007), 72 FR 
68920, Securities Exchange Act Release No. 57406 (Feb. 29, 2008) 
[SR-DTC-2007-06]. Securities Exchange Act Release No. 56864 (Nov. 
29, 2007), 72 FR 68922, Securities Exchange Act Release No. 57405 
(Feb. 29, 2008) [SR-FICC-2007-06].
---------------------------------------------------------------------------

A. Minor Rule Violation Plan

    In 1984, the Commission adopted amendments to Rule 19d-1(c) under 
the Act \4\ that allow self-regulatory organizations with Commission 
approval to adopt 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 adopting a Minor 
Rule Violation Plan within the meaning of Rule 19d-1(c)(2) under the 
Act for those rule violations NSCC deems minor. Consistent with Rule 
19d-1(c)(2) under the Act, NSCC is designating as minor rule violations 
those rule violations for which a fine may be assessed in an amount not 
to exceed $5,000. If a member disputes a fine imposed by NSCC by filing 
a written request for hearing and a written statement setting forth, 
among other things, the action or proposed action with respect to which 
a hearing is being requested and the basis for the objection to such 
action, 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 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.
---------------------------------------------------------------------------

B. Hearings for All Other Violations and Minor Rule Violation Appeals

    For matters involving (1) an alleged violation of an NSCC rule for 
which a fine in an amount of over $5,000 is assessed, (2) applicants 
for membership, (3) other disciplinary actions to which the Minor Rule 
Violation Plan would not apply, or (4) appeals from a Minor Rule 
Violation Panel decision adverse to a member or applicant, the member 
or applicant is 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 are final; 
however, the full Board of Directors retains the right to modify any 
sanction or reverse any decision of the panel that is 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 panel, the associated cost may be charged in whole or part to the 
member or applicant in the event that the decision is adverse to the 
member or applicant. The member or applicant is advised of the 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.

C. Administrative Changes: Uniformity of Time Frames

    The rule changes will 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.\7\ Under the rule change, a 
member or applicant has five business days, or two business days in the 
case of a summary action taken against the member or applicant pursuant 
to Rule 46,\8\ from the date on which NSCC first informs it of a 
sanction or a denial of membership in which to request a hearing.
---------------------------------------------------------------------------

    \7\ DTC rules do not impose an accelerated deadline for an 
Interested Person to request a hearing in the case of summary action 
taken against the Interested Person. A summary action is an action 
taken prior to a hearing to determine the propriety of the action.
    \8\ 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 taken against the member or applicant, after filing a 
request for a hearing with NSCC, the member or applicant is 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.

D. 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'').\9\ Each of 
those rules is pending deletion as part of rule filing SR-NSCC-2006-17. 
Accordingly, since this filing is approved prior to the approval of SR-
NSCC-2006-17, the time frame for an applicant or member to request a 
hearing that appears in those rules is also deleted.
---------------------------------------------------------------------------

    \9\ The current time frame for an applicant or member to request 
a hearing also appears in Rule 45 (``Notices''). This rule filing 
deletes that reference also.
---------------------------------------------------------------------------

III. Discussion

    The Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to a registered clearing agency. In particular, 
the Commission believes the proposal is consistent with the 
requirements of Section 17A(b)(3)(F),\10\ which, among other things, 
requires that the rules of a clearing agency are designed to remove 
impediments to and perfect the mechanisms of a national system for the 
prompt and accurate clearance and settlement of securities transactions 
and with the requirements of Section 17A(b)(3)(H) \11\ which, among 
other things, requires that the rules of a clearing agency provide a 
fair procedure with respect to the disciplining of participants and the 
denial of participation to any person seeking to be a participant. The 
Commission finds that the proposed rule change, which harmonizes NSCC's 
hearing procedure rules with those of DTC and FICC and which adopts a 
Minor Rule Violation Plan, is consistent with those statutory 
obligations.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78q-1(b)(3)(F).
    \11\ 15 U.S.C. 78q-1(b)(3)(H).

---------------------------------------------------------------------------

[[Page 12244]]

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act \12\ and the 
rules and regulations thereunder.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\13\ that the proposed rule change (File No. SR-NSCC-2007-06) be, 
and hereby is, approved.\14\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(2).
    \14\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------


Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-4340 Filed 3-5-08; 8:45 am]
BILLING CODE 8011-01-P