Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating To Modifying the Appendix of the GSD-CME Cross-Margining Agreement, Deletion of the GSD-TCC Cross-Margining Arrangement, and Technical Changes and Corrections, 10321-10322 [E9-5057]
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<![CDATA[
Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
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 the filing also will be available
for inspection and copying at the
principal office of the Exchange. 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–2009–007 and
should be submitted on or before March
31, 2009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–4965 Filed 3–9–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59498; File No. SR–FICC–
2009–01]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating To
Modifying the Appendix of the GSD–
CME Cross-Margining Agreement,
Deletion of the GSD–TCC CrossMargining Arrangement, and Technical
Changes and Corrections
March 4, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
January 13, 2009, the Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared primarily by FICC.
FICC filed the proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
the Act 2 and Rule 19b–4(f)(4)
thereunder 3 so that the proposal was
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4).
1 15
VerDate Nov<24>2008
15:20 Mar 09, 2009
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change will amend
the appendix of the cross-margining
agreement between FICC and the
Chicago Mercantile Exchange, Inc.
(‘‘CME’’) (‘‘FICC/CME Agreement’’), and
to make additional technical changes
and corrections.
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
FICC is proposing to amend its
Divisions’ rules as follows:
1. Revisions to Appendix A of the CrossMargining Agreement With the Chicago
Mercantile Exchange, Inc.
Through its Government Securities
Division (‘‘GSD’’), FICC currently
participates in a cross-margining
arrangement with the CME. The FICC/
CME Agreement, which governs the
arrangement, contains an Appendix A,
which requires the parties to list other
cross-margining or loss sharing
arrangements to which they are parties
and the order in which they will be
considered when the parties calculate
their available resources under the
FICC/CME Agreement. The FICC/CME
Agreement further provides that the
parties may amend Appendix A without
prior approval of the other party by
giving notice to the other party.4
FICC has notified CME that it has
amended Appendix A of the Agreement
to: (1) Remove references to the crossmargining agreement with The Clearing
Corporation (‘‘TCC’’) as that agreement
is no longer in effect, (2) remove a
reference to a multilateral netting
contract and limited cross-guaranty
agreement with the now-defunct
Emerging Markets Clearing Corporation,
(3) change the priority of the
multilateral cross-guaranty agreements
that FICC participates, and (4) make
reference to the upcoming portfolio
margining between GSD and FICC’s
Mortgage-Backed Securities Division
(‘‘MBSD’’). This rule change
incorporates these changes into the
FICC/CME Agreement, which is a part
of the GSD’s rules.
2. Correction to MBSD Rules
FICC is also correcting a reference in
MBSD’s rules to reflect actual practice.
While MBSD’s fee schedule accurately
labels a ‘‘fee’’ for non-compliance with
MBSD trade input requirements, its
rules incorrectly label this a ‘‘fine.’’ The
proposed rule change corrects the fine
reference.
3. Clarifications to GSD’s Schedule of
Time Frames
FICC is updating its Schedule of Time
Frames to correct the time during which
FICC’s comparison, netting, settlement,
and margining output normally is made
available to members and to make clear
that the funds-only settlement process
occurs through the Federal Reserve’s
National Settlement Service.
FICC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 5
and the rules and regulations
thereunder because it will make certain
rule corrections and address the crossmargining agreements and therefore will
support the prompt and accurate
clearance and settlement of securities
transactions.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FICC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(4) 7 thereunder because it
effects a change in an existing service of
a registered clearing agency that does
5 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A)(iii).
7 17 CFR 240.19b–4(f)(4).
6 15
4 Recitals
Jkt 217001
PO 00000
F and G of the FICC/CME Agreement.
Frm 00104
Fmt 4703
Sfmt 4703
10321
E:\FR\FM\10MRN1.SGM
10MRN1
10322
Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices
not adversely affect the safeguarding of
securities and funds in the custody or
control of the clearing agency or for
which it is responsible and does not
significantly affect the respective rights
or obligations of the clearing agency or
persons using the service. 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–FICC–2009–01 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
Station Place, 100 F Street, NE.,
Washington, DC 20549–1090.
All submissions should refer to File No.
SR–FICC–2009–01. 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, 450 Fifth Street, NW.,
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
VerDate Nov<24>2008
15:20 Mar 09, 2009
Jkt 217001
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–2009–01 and should be
submitted on or before March 31, 2009.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–5057 Filed 3–9–09; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59492; File No. SR–ISE–
2009–08]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change, as
Modified by Amendment No. 1, by
International Securities Exchange, LLC
Relating to Changes to the Third
Amended and Restated Limited
Liability Company Operating
Agreement of Direct Edge Holdings
LLC
March 3, 2009.
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 February
27, 2009, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change, as described
in Items I, II, and III below, which items
have been prepared by the selfregulatory organization. On March 3,
2009, the Exchange filed Amendment
No. 1 to the proposed rule change. The
Commission is publishing this notice to
solicit comments on the proposed rule
change, as modified by Amendment No.
1, from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to make
changes to the Third Amended and
Restated Limited Liability Company
Operating Agreement of Direct Edge
Holdings LLC (‘‘Third Amended and
Restated DE Operating Agreement’’) to
8 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
preserve the right of the DB US
Financial Markets Holding Corporation,
LabMorgan Corporation, Merrill Lynch
L.P. Holdings, Inc., Nomura Securities
International, Inc., and Sun Partners
LLC (together, the ‘‘ISE Stock Exchange
Consortium Members’’), who were
formerly minority unitholders of the ISE
Stock Exchange, LLC, as defined below,
to retain the right to designate a
Manager to Direct Edge Holdings Board
of Managers 3 on an ongoing basis. The
text of the proposed rule change is
available on the Exchange’s Web site
https://www.ise.com, at the principal
office of the Exchange, 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
self-regulatory organization 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
1. Purpose
On December 23, 2008, the ISE closed
a transaction whereby, among other
things, ISE Stock Exchange, LLC (‘‘ISE
Stock Exchange’’), a Delaware limited
liability company, merged with and into
Maple Merger Sub, LLC (‘‘Maple Merger
Sub’’), a Delaware limited liability
company and a wholly owned
subsidiary of Direct Edge Holdings LLC
(‘‘Direct Edge’’), with Maple Merger Sub
being the surviving entity.4 As part of
the same transaction, ISE Holdings
purchased equity interests in Direct
Edge such that subsequent to
completing the transaction, ISE
Holdings owns a 31.54% equity interest
in Direct Edge. Following the closing of
the transaction and the merger of ISE
3 Pursuant to Section 7.1(a) of the Third Amended
and Restated DE Operating Agreement, each
Manager is designated as a ‘‘manager’’ of Direct
Edge within the meaning of the Securities and [sic]
Exchange Act of 1934 (the ‘‘Exchange Act’’).
4 See Exchange Act Release No. 59135 (December
22, 2008), 73 FR 79954 (December 30, 2008)(SR–
ISE–2008–85)(Order approving a proposed rule
change, as modified by amendment no. 1, relating
to the purchase by International Securities
Exchange Holdings, Inc. (‘‘ISE Holdings’’) of an
ownership interest in Direct Edge).
E:\FR\FM\10MRN1.SGM
10MRN1
]]>Agencies
[Federal Register Volume 74, Number 45 (Tuesday, March 10, 2009)]
[Notices]
[Pages 10321-10322]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-5057]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59498; File No. SR-FICC-2009-01]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating To Modifying the Appendix of the GSD-CME Cross-Margining
Agreement, Deletion of the GSD-TCC Cross-Margining Arrangement, and
Technical Changes and Corrections
March 4, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 13, 2009, the
Fixed Income Clearing Corporation (``FICC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I, II, and III below, which Items have been prepared
primarily by FICC. FICC filed the proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act \2\ and Rule 19b-4(f)(4) thereunder
\3\ so that the proposal was effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(iii).
\3\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will amend the appendix of the cross-
margining agreement between FICC and the Chicago Mercantile Exchange,
Inc. (``CME'') (``FICC/CME Agreement''), and to make additional
technical changes and corrections.
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
FICC is proposing to amend its Divisions' rules as follows:
1. Revisions to Appendix A of the Cross-Margining Agreement With the
Chicago Mercantile Exchange, Inc.
Through its Government Securities Division (``GSD''), FICC
currently participates in a cross-margining arrangement with the CME.
The FICC/CME Agreement, which governs the arrangement, contains an
Appendix A, which requires the parties to list other cross-margining or
loss sharing arrangements to which they are parties and the order in
which they will be considered when the parties calculate their
available resources under the FICC/CME Agreement. The FICC/CME
Agreement further provides that the parties may amend Appendix A
without prior approval of the other party by giving notice to the other
party.\4\
---------------------------------------------------------------------------
\4\ Recitals F and G of the FICC/CME Agreement.
---------------------------------------------------------------------------
FICC has notified CME that it has amended Appendix A of the
Agreement to: (1) Remove references to the cross-margining agreement
with The Clearing Corporation (``TCC'') as that agreement is no longer
in effect, (2) remove a reference to a multilateral netting contract
and limited cross-guaranty agreement with the now-defunct Emerging
Markets Clearing Corporation, (3) change the priority of the
multilateral cross-guaranty agreements that FICC participates, and (4)
make reference to the upcoming portfolio margining between GSD and
FICC's Mortgage-Backed Securities Division (``MBSD''). This rule change
incorporates these changes into the FICC/CME Agreement, which is a part
of the GSD's rules.
2. Correction to MBSD Rules
FICC is also correcting a reference in MBSD's rules to reflect
actual practice. While MBSD's fee schedule accurately labels a ``fee''
for non-compliance with MBSD trade input requirements, its rules
incorrectly label this a ``fine.'' The proposed rule change corrects
the fine reference.
3. Clarifications to GSD's Schedule of Time Frames
FICC is updating its Schedule of Time Frames to correct the time
during which FICC's comparison, netting, settlement, and margining
output normally is made available to members and to make clear that the
funds-only settlement process occurs through the Federal Reserve's
National Settlement Service.
FICC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \5\ and the rules and
regulations thereunder because it will make certain rule corrections
and address the cross-margining agreements and therefore will support
the prompt and accurate clearance and settlement of securities
transactions.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
FICC does not believe that the proposed rule change will have any
impact or impose any burden on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(4) \7\ thereunder
because it effects a change in an existing service of a registered
clearing agency that does
[[Page 10322]]
not adversely affect the safeguarding of securities and funds in the
custody or control of the clearing agency or for which it is
responsible and does not significantly affect the respective rights or
obligations of the clearing agency or persons using the service. 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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
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-2009-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File No. SR-FICC-2009-01. 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, 450 Fifth Street,
NW., 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-2009-01 and should be
submitted on or before March 31, 2009.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-5057 Filed 3-9-09; 8:45 am]
BILLING CODE 8011-01-P
