Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change Relating to Applicant and Member Disqualification Criteria, 40893-40895 [E8-16230]
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Federal Register / Vol. 73, No. 137 / Wednesday, July 16, 2008 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 35 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
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change, or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–FINRA–2008–025 on the
subject line.
mstockstill on PROD1PC66 with NOTICES
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FINRA–2008–025. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
VerDate Aug<31>2005
17:00 Jul 15, 2008
Jkt 214001
Copies of such filing also will be
available for inspection and copying at
the principal office of FINRA. 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–FINRA–2008–025 and
should be submitted on or before
August 6, 2008.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–16232 Filed 7–15–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58128; File No. SR–FICC–
2007–04]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change
Relating to Applicant and Member
Disqualification Criteria
July 9, 2008.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
April 30, 2007, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change and on February
7, 2008, and March 19, 2008, amended
the proposed rule change as described
in Items I, II, and III below, which Items
have been prepared substantially by
FICC. The Commission is publishing
this notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change would
amend FICC’s Government Securities
Division’s (‘‘GSD’’) and Mortgage
Backed Securities Division’s (‘‘MBSD’’)
(collectively, ‘‘Divisions’’) rules
concerning applicant and member
disqualification criteria.
PO 00000
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FICC 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. FICC has prepared
summaries, set forth in Sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of this filing is for FICC
to amend GSD’s and MBSD’s rules
concerning applicant and member
disqualification criteria in order to make
the Divisions’ rules consistent with the
rules of FICC’s affiliated clearing
agencies, the National Securities
Clearing Corporation (‘‘NSCC’’) and The
Depository Trust Company (‘‘DTC’’).
The proposed rule changes cover the
following areas:
1. Management Consideration of
Disqualification Criteria 2
GSD’s membership qualification rules
currently require FICC’s Board of
Directors to determine whether the
presence of certain negative factors
affecting a membership application
should constitute the basis for denying
membership to such applicant.
Information that might disqualify an
applicant (referred to in GSD’s rules as
‘‘disqualification criteria’’) include the
applicant being subject to a statutory
disqualification 3 or conviction of
various crimes such as bribery. The
disqualification criteria in GSD’s rules
similarly apply as standards for
continued membership.
FICC proposes to change GSD’s
disqualification criteria to allow FICC’s
management, instead of FICC’s Board, to
determine whether the presence of a
potential disqualifier should prevent an
entity from obtaining or continuing
membership in GSD. Such change
would conform to the rules of MBSD,
DTC, and NSCC, which allow such
determinations to be made by
management.
2. Associated and Affiliated Persons
GSD’s and MBSD’s respective rules
also apply certain applicant and
2 GSD
6 17
CFR 200.30–3(a)(12).
1 U.S.C. 78s(b)(1).
Frm 00064
Fmt 4703
Sfmt 4703
40893
Rule 2A, Section 3(d).
15 U.S.C. 78c(a)(39) (definition of ‘‘statutory
disqualification’’).
3 See
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40894
Federal Register / Vol. 73, No. 137 / Wednesday, July 16, 2008 / Notices
member disqualification criteria to
persons ‘‘associated’’ (in GSD’s rules) or
‘‘affiliated’’ (in MBSD’s rules) with the
applicant or member firm. FICC states
that it is not always practical for it to
ascertain which individuals are
‘‘associated’’ or ‘‘affiliated’’ with a
particular entity and therefore proposes
to amend these rules to conform them
to its internal surveillance procedures
and make them consistent across both
Divisions. Accordingly, references to
persons ‘‘associated’’ or ‘‘affiliated’’
with the member or applicant would be
changed to references to ‘‘controlling
management,’’ which will include those
officers of the applicant or member that
are currently screened by FICC’s Risk
Management department pursuant to
internal procedures.4 In addition, FICC
proposes to add language to its rules
that would require applicants to inform
FICC as to any member of its controlling
management that is or becomes subject
to statutory disqualification.
mstockstill on PROD1PC66 with NOTICES
3. Monitoring of Objective
Disqualification Criteria
Under the proposal, GSD’s
disqualification criteria would be
amended to reflect an approach that
such criteria should be objectively and
practically monitored. Specifically,
FICC proposes to delete one
disqualification criterion that refers to
an applicant being subject to ‘‘closer
than normal’’ surveillance by a
regulatory body. FICC states that this
event might not be reported in a
regulatory background check.
In addition, MBSD’s rules currently
contain only two criteria that may be the
basis for denial of a membership
application, including: (i) An
applicant’s subjection to a statutory
disqualification or similar order by
another examining authority and (ii) an
applicant or an associated person of the
applicant making a misstatement of a
material fact in connection with its
membership application or thereafter.
MBSD proposes to add GSD’s remaining
disqualification criteria, which would
result in the Divisions’ having identical
disqualification criteria.
Finally, FICC proposes adding a
provision to both Divisions’ rules that
would clarify FICC’s right to deny
membership to an applicant or member
if FICC learns of any factor or
circumstance that might impact the
suitability of that particular applicant or
member as a participant.
4 Proposed GSD Rule 1 and MBSD Article I (‘‘The
term ‘controlling management’ shall mean the Chief
Executive Officer, the Chief Financial Officer, and
the Chief Operations Officer, or their equivalents,
of an applicant of Participant.’’).
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17:00 Jul 15, 2008
Jkt 214001
4. Additional Changes
FICC proposes to make the following
changes to provide additional
uniformity among the Divisions’ rules,
NSCC, and DTC:
• Adding to both Divisions’
disqualification criteria violations of the
Investment Company Act and
Investment Advisers Act,5 since those
statutes apply to their current
membership base.
• Amending GSD’s definition of ‘‘selfregulatory organization’’ to include
those entities that are foreign
equivalents. The same definition for
‘‘self-regulatory organization’’ would be
added to MBSD’s rules.
• Removing the word ‘‘willful’’ from
both Divisions’ disqualification criteria
concerning an applicant’s or an
applicant’s controlling management’s
violation of the specified federal statutes
or any rule or regulation promulgated
thereunder. FICC believes that a
violation of these provisions, whether or
not willful, should be considered as a
potential disqualification criterion.
• Deleting references in GSD’s rules
to Section 153 of Chapters 25 and 47 of
Title 18 of the United States Code
(‘‘Code’’) because the crimes covered by
these statutes (i.e., embezzlement,
forgery, false statements, etc.) are
captured by the current disqualification
criteria. References to those portions of
the Code that deal with mail and wire
fraud (Sections 1341, 1342 and 1343)
would remain. This provision, as
proposed, would also be added to
MBSD’s rules.
Conforming changes would be made
to the cease to act provisions of GSD’s
rules (Rule 21, ‘‘Restrictions on Access
to Services’’) in order to ensure
consistency within the rules and across
the Divisions.
FICC states that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder because they provide
consistency and transparency with
respect to the applicant and member
disqualification criteria in the GSD and
MBSD rules, thereby promoting the
prompt and accurate clearance and
settlement of securities transactions.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FICC believes that the proposed rule
change does not impact or impose any
burden on competition.
5 15 U.S.C. 80a–1 et seq. and 15 U.S.C. 80b–1 et
seq., respectively.
6 15 U.S.C. 78q–1.
PO 00000
Frm 00065
Fmt 4703
Sfmt 4703
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
FICC has not solicited or received
written comments relating to the
proposed rule change. FICC will notify
the Commission of any written
comments it receives.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
ninety days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve such proposed
rule change or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
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-FICC–2007–04 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–FICC–2007–04. 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
E:\FR\FM\16JYN1.SGM
16JYN1
Federal Register / Vol. 73, No. 137 / Wednesday, July 16, 2008 / Notices
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
Room, 100 F Street, NE., Washington,
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m.
Copies of such filing also will be
available for inspection and copying at
FICC’s principal office and on FICC’s
Web site at <https://ficc.com/gov/
gov.docs.jsp?NS-query=#rf>. 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 No.
SR–FICC–2007–04 and should be
submitted on or before August 6, 2008.
For the Commission by the Division of
Trading and Markets pursuant to delegated
authority.7
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8–16230 Filed 7–15–08; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–58129; File No. SR–ISE–
2008–21]
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is proposing to amend
certain Exchange rules that govern an
Exchange member’s conduct of doing
business with the public. Specifically,
the proposed rule change would require
members to integrate the responsibility
for supervision of their public customer
options business into their overall
supervisory and compliance programs.
In addition, the proposal would require
members to strengthen their supervisory
procedures and internal controls as
related to their public customer options
business. The text of the proposed rule
change is available at ISE’s Web site at
https://www.ise.com, the Office of the
Secretary, ISE, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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. The
Exchange has prepared summaries, set
forth in sections A, B and C below, of
the most significant aspects of such
statements.
Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
July 9, 2008.
mstockstill on PROD1PC66 with NOTICES
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
International Securities Exchange, LLC
Relating to an Exchange Member’s
Conduct of Doing Business With the
Public
I. Integration of Options Supervision
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 27,
2008, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which items have been
substantially prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
The purpose of the proposed rule
change is to create a supervisory
structure for options that is similar to
that required by New York Stock
Exchange, Inc. (‘‘NYSE’’) Rule 342 and
National Association of Securities
Dealers, Inc. (‘‘NASD’’) Rule 3010. The
proposed rule change would also
conform ISE rules to those of the
Chicago Board Options Exchange
(‘‘CBOE’’) which has recently
eliminated the requirement that
members qualified to do a public
customer business in options must
designate a single person to act as a
Senior Registered Options Principal
(‘‘SROP’’) for the member and that each
such member designate a specific
individual as a Compliance Registered
7 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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17:44 Jul 15, 2008
Jkt 214001
Purpose
PO 00000
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40895
Options Principal (‘‘CROP’’).3 Instead,
the rule requires members to integrate
the SROP and CROP functions into their
overall supervisory and compliance
programs.
The SROP concept was first
introduced during the early years of
development of the listed options
market. Previously, members were
required to designate one or more
persons qualified as Registered Options
Principals (‘‘ROPs’’) to have supervisory
responsibilities with respect to the
firms’ options business. As the number
of ROPs at larger firms began to
increase, an additional requirement was
imposed that firms designate one of
their ROPs as the SROP. This was
intended to eliminate confusion as to
where the compliance and supervisory
responsibilities lay by centralizing in a
single supervisory officer overall
responsibility for the supervision of a
firm’s options activities.4 Subsequently,
following the recommendation of the
Commission, the options exchanges
required firms to designate a CROP to be
responsible for each firm’s overall
compliance program with respect to its
options activities.5 The CROP could be
the same person designated as a SROP.
Since the SROP and CROP
requirements were first imposed, the
supervisory function with respect to
options activities of most securities
firms has been integrated into the matrix
of supervisory and compliance
functions in respect of the firms’ other
securities activities. This not only
reflects the maturity of the options
market, but also recognizes the ways in
which the uses of options themselves
have become more integrated with other
securities in the implementation of
particular strategies. By permitting
supervision of a firm’s options activities
to be handled in the same manner as the
supervision of its securities and futures
activities, the proposed rule change
would ensure that supervisory
responsibility over each segment of a
firm’s business is assigned to the best
qualified persons in the firm, thereby
enhancing the overall quality of
supervision and compliance.
The proposed rule change would
allow firms the flexibility to assign such
supervisory and compliance
responsibilities, which formerly resided
with the SROP and/or CROP, to more
than one individual. For example, the
proposed rule change would permit a
3 See Securities and Exchange Act Release No.
56492 (September 21, 2007), 72 FR 54952
(September 27, 2007) (SR–CBOE–2007–106).
4 Securities and Exchange Commission, 96th
Cong., 1st Sess., Report of the Special Study of the
Options Markets (Comm. Print 1978) 316 fn. 11.
5 Id. at p. 335.
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]]>Agencies
[Federal Register Volume 73, Number 137 (Wednesday, July 16, 2008)]
[Notices]
[Pages 40893-40895]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16230]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-58128; File No. SR-FICC-2007-04]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing of Proposed Rule Change Relating to Applicant and
Member Disqualification Criteria
July 9, 2008.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on April 30, 2007, the Fixed
Income Clearing Corporation (``FICC'') filed with the Securities and
Exchange Commission (``Commission'') a proposed rule change and on
February 7, 2008, and March 19, 2008, amended the proposed rule change
as described in Items I, II, and III below, which Items have been
prepared substantially by FICC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change would amend FICC's Government Securities
Division's (``GSD'') and Mortgage Backed Securities Division's
(``MBSD'') (collectively, ``Divisions'') rules concerning applicant and
member disqualification criteria.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FICC 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. FICC has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of this filing is for FICC to amend GSD's and MBSD's
rules concerning applicant and member disqualification criteria in
order to make the Divisions' rules consistent with the rules of FICC's
affiliated clearing agencies, the National Securities Clearing
Corporation (``NSCC'') and The Depository Trust Company (``DTC''). The
proposed rule changes cover the following areas:
1. Management Consideration of Disqualification Criteria \2\
---------------------------------------------------------------------------
\2\ GSD Rule 2A, Section 3(d).
---------------------------------------------------------------------------
GSD's membership qualification rules currently require FICC's Board
of Directors to determine whether the presence of certain negative
factors affecting a membership application should constitute the basis
for denying membership to such applicant. Information that might
disqualify an applicant (referred to in GSD's rules as
``disqualification criteria'') include the applicant being subject to a
statutory disqualification \3\ or conviction of various crimes such as
bribery. The disqualification criteria in GSD's rules similarly apply
as standards for continued membership.
---------------------------------------------------------------------------
\3\ See 15 U.S.C. 78c(a)(39) (definition of ``statutory
disqualification'').
---------------------------------------------------------------------------
FICC proposes to change GSD's disqualification criteria to allow
FICC's management, instead of FICC's Board, to determine whether the
presence of a potential disqualifier should prevent an entity from
obtaining or continuing membership in GSD. Such change would conform to
the rules of MBSD, DTC, and NSCC, which allow such determinations to be
made by management.
2. Associated and Affiliated Persons
GSD's and MBSD's respective rules also apply certain applicant and
[[Page 40894]]
member disqualification criteria to persons ``associated'' (in GSD's
rules) or ``affiliated'' (in MBSD's rules) with the applicant or member
firm. FICC states that it is not always practical for it to ascertain
which individuals are ``associated'' or ``affiliated'' with a
particular entity and therefore proposes to amend these rules to
conform them to its internal surveillance procedures and make them
consistent across both Divisions. Accordingly, references to persons
``associated'' or ``affiliated'' with the member or applicant would be
changed to references to ``controlling management,'' which will include
those officers of the applicant or member that are currently screened
by FICC's Risk Management department pursuant to internal
procedures.\4\ In addition, FICC proposes to add language to its rules
that would require applicants to inform FICC as to any member of its
controlling management that is or becomes subject to statutory
disqualification.
---------------------------------------------------------------------------
\4\ Proposed GSD Rule 1 and MBSD Article I (``The term
`controlling management' shall mean the Chief Executive Officer, the
Chief Financial Officer, and the Chief Operations Officer, or their
equivalents, of an applicant of Participant.'').
---------------------------------------------------------------------------
3. Monitoring of Objective Disqualification Criteria
Under the proposal, GSD's disqualification criteria would be
amended to reflect an approach that such criteria should be objectively
and practically monitored. Specifically, FICC proposes to delete one
disqualification criterion that refers to an applicant being subject to
``closer than normal'' surveillance by a regulatory body. FICC states
that this event might not be reported in a regulatory background check.
In addition, MBSD's rules currently contain only two criteria that
may be the basis for denial of a membership application, including: (i)
An applicant's subjection to a statutory disqualification or similar
order by another examining authority and (ii) an applicant or an
associated person of the applicant making a misstatement of a material
fact in connection with its membership application or thereafter. MBSD
proposes to add GSD's remaining disqualification criteria, which would
result in the Divisions' having identical disqualification criteria.
Finally, FICC proposes adding a provision to both Divisions' rules
that would clarify FICC's right to deny membership to an applicant or
member if FICC learns of any factor or circumstance that might impact
the suitability of that particular applicant or member as a
participant.
4. Additional Changes
FICC proposes to make the following changes to provide additional
uniformity among the Divisions' rules, NSCC, and DTC:
Adding to both Divisions' disqualification criteria
violations of the Investment Company Act and Investment Advisers
Act,\5\ since those statutes apply to their current membership base.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 80a-1 et seq. and 15 U.S.C. 80b-1 et seq.,
respectively.
---------------------------------------------------------------------------
Amending GSD's definition of ``self-regulatory
organization'' to include those entities that are foreign equivalents.
The same definition for ``self-regulatory organization'' would be added
to MBSD's rules.
Removing the word ``willful'' from both Divisions'
disqualification criteria concerning an applicant's or an applicant's
controlling management's violation of the specified federal statutes or
any rule or regulation promulgated thereunder. FICC believes that a
violation of these provisions, whether or not willful, should be
considered as a potential disqualification criterion.
Deleting references in GSD's rules to Section 153 of
Chapters 25 and 47 of Title 18 of the United States Code (``Code'')
because the crimes covered by these statutes (i.e., embezzlement,
forgery, false statements, etc.) are captured by the current
disqualification criteria. References to those portions of the Code
that deal with mail and wire fraud (Sections 1341, 1342 and 1343) would
remain. This provision, as proposed, would also be added to MBSD's
rules.
Conforming changes would be made to the cease to act provisions of
GSD's rules (Rule 21, ``Restrictions on Access to Services'') in order
to ensure consistency within the rules and across the Divisions.
FICC states that the proposed rule change is consistent with the
requirements of Section 17A of the Act \6\ and the rules and
regulations thereunder because they provide consistency and
transparency with respect to the applicant and member disqualification
criteria in the GSD and MBSD rules, thereby promoting the prompt and
accurate clearance and settlement of securities transactions.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
FICC believes that the proposed rule change does not 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
FICC has not solicited or received written comments relating to the
proposed rule change. FICC will notify the Commission of any written
comments it receives.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
(A) By order approve such proposed rule change or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File No. SR-FICC-2007-04 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-FICC-2007-04. 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
[[Page 40895]]
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 Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at FICC's principal office and on FICC's Web
site at <https://ficc.com/gov/gov.docs.jsp?NS-query=#rf>. 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 No. SR-FICC-2007-04 and should be
submitted on or before August 6, 2008.
For the Commission by the Division of Trading and Markets
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-16230 Filed 7-15-08; 8:45 am]
BILLING CODE 8010-01-P
