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]
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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.
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7 15
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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 (https://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 (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
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).
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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
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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
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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.
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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’’).
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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).
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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
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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
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]]>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.
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\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.
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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.
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\10\ 15 U.S.C. 78q-1(b)(3)(F).
\11\ 15 U.S.C. 78q-1(b)(3)(H).
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[[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.
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\12\ 15 U.S.C. 78q-1.
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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\
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\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\
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\15\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-4340 Filed 3-5-08; 8:45 am]
BILLING CODE 8011-01-P
