Self-Regulatory Organizations; The Depository Trust Company, Fixed Income Clearing Corporation, and National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Relating to Economic Sanctions and Embargo Programs Administered and Enforced by the Office of Foreign Assets Control, 48333-48335 [E9-22730]

Download as PDF Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices while maintaining all other elements of this pricing tier. 2. Statutory Basis NASDAQ believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,5 in general, and with Section 6(b)(4) of the Act,6 in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility or system which NASDAQ operates or controls. NASDAQ is reducing the level of liquidity provision required to receive a favorable rebate for orders in stocks listed on NASDAQ, AMEX or NYSE, resulting in potential price reductions for members with large volumes of liquidity provided. The impact of the changes upon the net fees paid by a particular market participant will depend upon a number of variables, including its monthly volume, the order types it uses, and the prices of its quotes and orders (i.e., its propensity to add or remove liquidity and to set the best bid and offer). NASDAQ notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive. NASDAQ believes that its fees remain competitive with other venues and are reasonable and equitably allocated to those members on the basis of whether they opt to direct orders to NASDAQ. B. Self-Regulatory Organization’s Statement on Burden on Competition NASDAQ does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. sroberts on DSKD5P82C1PROD with NOTICES 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act 7 and subparagraph (f)(2) of Rule 19b-4 thereunder.8 At any time within 60 days of the filing of the proposed rule change, 5 15 U.S.C. 78f. U.S.C. 78f(b)(4). 7 15 U.S.C. 78s(b)(3)(a)(ii). 8 17 CFR 240.19b–4(f)(2). 6 15 VerDate Nov<24>2008 21:23 Sep 21, 2009 Jkt 217001 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 Number SR–NASDAQ–2009–082 on the subject line. Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NASDAQ–2009–082. 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 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 offices 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– NASDAQ–2009–082, and should be PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 48333 submitted on or before October 13, 2009. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–22733 Filed 9–21–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60660; File Nos. SR–DTC– 2009–14, SR–NSCC–2009–07, SR–FICC– 2009–09] Self-Regulatory Organizations; The Depository Trust Company, Fixed Income Clearing Corporation, and National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Relating to Economic Sanctions and Embargo Programs Administered and Enforced by the Office of Foreign Assets Control September 11, 2009. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on August 26, 2009, The Depository Trust Company (‘‘DTC’’), the National Securities Clearing Corporation (‘‘NSCC’’), and 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, NSCC, and DTC (collectively, ‘‘Clearing Agencies’’). The Clearing Agencies filed the proposed rule changes pursuant to Section 19(b)(3)(A)(iii) of the Act 2 and Rule 19b–4(f)(4) thereunder 3 so that the proposals were effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule changes from interested persons. I. Self-Regulatory Organizations’ Statement of Terms of Substance of the Proposed Rule Changes The Clearing Agencies are revising their rules to refine the obligations of their members or participants concerning the economic sanctions and embargo programs administered and enforced by the Office of Foreign Assets Control (‘‘OFAC’’) of the U.S. Department of the Treasury. 9 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 E:\FR\FM\22SEN1.SGM 22SEN1 48334 Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices II. Self-Regulatory Organizations’ Statement of Purpose of, and Statutory Basis for, the Proposed Rule Changes In their filings with the Commission, the Clearing Agencies included statements concerning the purpose of and basis for the proposed rule changes and discussed any comments they received on the proposed rule changes. The text of these statements may be examined at the places specified in Item IV below. The Clearing Agencies have prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. sroberts on DSKD5P82C1PROD with NOTICES A. Self-Regulatory Organizations’ Statement of Purpose of, and Statutory Basis for, the Proposed Rule Changes On March 31, 2009, April 1, 2009, and April 22, 2009, FICC, NSCC, and DTC, respectively, filed proposed rule changes with the Commission to establish new OFAC compliance obligations.4 Specifically, the rule changes established a new requirement that certain members or participants subject to the jurisdiction of the U.S. submit a ‘‘Confirmation of an OFAC Program’’ Letter (‘‘OFAC Letter’’) every two years. The OFAC Letter is intended to document that the U.S. member or participant has implemented a program to conduct appropriate risk-based OFAC screening and that the U.S. member or participant confirms that activity subject to OFAC sanctions regulations has been excluded from business conducted through the Clearing Agencies. The Clearing Agencies and Commission received two comment letters in response to those rule changes.5 Under this set of rule changes, the Clearing Agencies are revising the text of the OFAC Letter to address the concerns expressed in the comment letters. In addition, NSCC is amending the language of Rule 2, Section 4, of NSCC’s Rules and Procedures to exclude Third Party Administrator Members and Investment Manager/ Agent Member from the requirement to submit an OFAC Letter, and FICC is amending Article III, Rule 1, Section 7, of FICC’s Mortgage Backed Securities Division’s rules to exclude EPN–Only Members from the requirement to submit an OFAC Letter. imposed additional obligations that were inconsistent with OFAC guidance and industry standards. After consultation with OFAC and the Commission and after further discussions with the commenters, the Clearing Agencies have agreed to modify the language of this provision in order to clarify that all Clearing Agencies’ members or participants subject to the jurisdiction of the U.S. (‘‘U.S. Members’’) are required to screen customer information for OFAC compliance but that the screening of customers alone may not be sufficient to address the U.S. Member’s OFAC obligations. 2. Certification of Exclusion from Business Both commentators indicated that the language within the third paragraph of the OFAC Letter was too broad and was inconsistent with the requirement that U.S. members or participants implement a risk-based OFAC program. The Clearing Agencies intended this provision to be consistent with the U.S. member’s or participant’s risk-based OFAC program; it was not the Clearing Agencies’ intent to impose a greater burden. Accordingly, the Clearing Agencies, in consultation with OFAC and the Commission, have modified the language in the third paragraph to clarify that U.S. members or participants will not submit transactions they know are subject to OFAC sanctions regulations. When determining the U.S. members’ or participants’ knowledge of activity that is subject to OFAC sanctions regulations, the Clearing Agencies will utilize standards established pursuant to the OFAC Economic Sanctions Enforcement Guidelines.6 These guidelines include willfully or recklessly violating OFAC sanctions regulations where the U.S. member or participant had actual knowledge or reason to know of the violation. The Clearing Agencies will rely on determinations made by OFAC or other competent authorities to determine whether members or participants are in compliance with this obligation. 1. Certification of OFAC Screening Both comment letters asserted that paragraph two of the OFAC Letter 3. Filing the OFAC Letter and the Associated Fine The commenters indicated that the time period for when U.S. members or participants must file the OFAC Letter 4 Securities Exchange Act Release No. 59917 (May 14, 2009), 74 FR 23907 (May 21, 2009). 5 NSCC received one comment letter from the American Bankers Association (‘‘ABA’’) and one comment letter issued jointly by the Securities Industry and Financial Markets Association (‘‘SIFMA’’) and The Clearing House. 6 The OFAC Economic Sanctions Enforcement Guidelines are set forth in 31 CFR Part 501 Appendix A. OFAC has proposed revisions to the Economic Sanctions Enforcement Guidelines which are available online at https://www.ustreas.gov/ offices/enforcement/ofac/policy/ enf_guide_09082008.pdf. VerDate Nov<24>2008 21:23 Sep 21, 2009 Jkt 217001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 was unclear. In an effort to clarify the time period, the Clearing Agencies will make the OFAC Letter available for execution by U.S. members or participants on or before October 1, 2009. NSCC must receive a validly executed OFAC Letter from all U.S. members or participants on or before March 31, 2010, in order for U.S. members or participants to satisfy the obligations imposed under these proposed rules. U.S. members or participants that fail to provide the Clearing Agencies with the OFAC Letter by March 31, 2010, will be subject to a $5,000 fine for failure to provide the initial OFAC Letter. This fine is imposed for failure to provide documentation required under the Clearing Agencies’ rules and the Clearing Agencies reserve the right to impose further fines or penalties up to and including ceasing to act on behalf of the member or participant for violation of the rules relating to the obligation of the member or participant to comply with OFAC sanctions regulations. The OFAC Letter must be executed every two years from the date on which the current OFAC Letter was executed. Therefore, if the OFAC Letter executed by the member or participant is dated March 1, 2010, the U.S. member or participant must execute and provide the Clearing Agencies with an updated OFAC Letter on or before March 1, 2012. Because of the potential for different renewal dates, the Clearing Agencies will remind each individual U.S. member or participant of the expiration of its current OFAC Letter approximately ninety (90) days prior to the date due for the updated OFAC Letter. Additionally, the Clearing Agencies will send out an Important Notice every two years that will remind U.S. members or participants of this obligation generally. Although the combination of the Important Notice and the individual reminders are intended to remind U.S. members or participants about the obligation to execute the updated OFAC Letter, it is ultimately the responsibility of the U.S. member or participant to satisfy the requirements of the Clearing Agencies’ rules regarding the OFAC Letter. The execution of the OFAC Letter is the legal responsibility of the U.S. member or participant and not the responsibility of the Chief Compliance Officer, OFAC Compliance Officer, or other representative responsible for managing the OFAC compliance program (‘‘Authorized OFAC Officer’’) of the U.S. member or participant. Therefore, the fine is imposed against the U.S. member or participant and is E:\FR\FM\22SEN1.SGM 22SEN1 Federal Register / Vol. 74, No. 182 / Tuesday, September 22, 2009 / Notices the legal obligation of the U.S. member or participant and not the Authorized OFAC Officer. To clarify this point, the OFAC Letter has been updated to indicate that the Authorized OFAC Officer is signing on behalf of the U.S. member or participant. The Clearing Agencies believe that proposed rule changes are consistent with the requirements of Section 17A of the Act 7 and the rules and regulations thereunder because they will enhance the Clearing Agencies’ compliance with applicable laws thereby reducing risks and associated costs to the Clearing Agencies and their members and participants. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others As part of the process of amending the OFAC Letter, the Clearing Agencies solicited and received comments from representatives of the industry groups that submitted comments to SR–NSCC– 2009–03. The Clearing Agencies will notify the Commission of any additional written comments they receive. sroberts on DSKD5P82C1PROD with NOTICES III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule changes have become effective upon filing pursuant to Section 19(b)(3)(A)(iii) of the Act 8 and Rule 19b–4(f)(4) 9 thereunder because each of the proposed rule changes effects a change in an existing service of one of the Clearing Agencies that (i) does not adversely affect the safeguarding of securities or funds in the custody or control of the Clearing Agencies or for which it is responsible and (ii) does not significantly affect the respective rights of the clearing agencies or persons using the service. At any time within sixty days of the filing of such rule changes, the Commission may summarily abrogate such rule changes 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. U.S.C. 78q–1. U.S.C. 78s(b)(3)(A)(iii). 9 17 CFR 240.19b–4(f)(4). VerDate Nov<24>2008 21:23 Sep 21, 2009 Jkt 217001 Electronic Comments For the Commission by the Division of Trading and Markets, pursuant to delegated authority.10 Florence E. Harmon, Deputy Secretary. [FR Doc. E9–22730 Filed 9–21–09; 8:45 am] • Use the Commission’s Internet BILLING CODE 8010–01–P comment form (https://www.sec.gov/ rules/sro.shtml) or • Send an e-mail to ruleDEPARTMENT OF TRANSPORTATION comments@sec.gov. Please include File No. SR–DTC–2009–14, SR–NSCC–2009– National Highway Traffic Safety 07, or SR–FICC–2009–09 on the subject Administration line. Paper Comments The Clearing Agencies believe that the proposed rule change will not have any impact or impose any burden on competition. 8 15 Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule changes are consistent with the Act. Comments may be submitted by any of the following methods: should refer to File No. SR–DTC–2009– 14, SR–NSCC–2009–07, or SR–FICC– 2009–09 and should be submitted on or before October 13, 2009. [Docket No. NHTSA–2009–0059] B. Self-Regulatory Organization’s Statement on Burden on Competition 7 15 IV. Solicitation of Comments 48335 • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File No. SR–DTC–2009–14, SR–NSCC–2009–07, or SR–FICC–2009–09. At least one of these file numbers 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 Section, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filings also will be available for inspection and copying at DTC’s, NSCC’s, and FICC’s principal offices and on DTC’s, NSCC’s, and FICC’s Web sites, respectively at <https://ficc.com/gov/gov.docs. jsp?NSquery=#rf>, <https://www.dtcc.com/ legal/rule_filings/nscc/2009.php>, and <https://www.dtc.org/impNtc/mor/ index.html>. 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 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 Reports, Forms, and Recordkeeping Requirements AGENCY: National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT). ACTION: Request for public comment. SUMMARY: Before a Federal agency can collect certain information from the public, it must receive approval from the Office of Management and Budget (OMB). Under procedures established by the Paperwork Reduction Act of 1995, Federal agencies must solicit public comment on proposed collections of information, including extensions and reinstatement of previously approved collections. This document describes a request for emergency clearance for a collection of information associated with product plan information to assist the agency in establishing corporate average fuel economy standards for model years 2012 through 2016 passenger cars and light trucks. The establishment of those standards is required by the Energy Policy and Conservation Act, as amended by the Energy Independence and Security Act (EISA) of 2007, Public Law 110–140. DATES: Comments must be received on or before November 23, 2009. ADDRESSES: Comments must refer to the docket notice number cited at the beginning of this notice, and be submitted to: Mr. Ken Katz, Fuel Economy Division, Office of International Policy, Fuel Economy and Consumer Programs, at (202) 366–0846, facsimile (202) 493–2290, electronic mail: ken.katz@dot.gov. For legal issues, call Ms. Dorothy Nakama, Office of the Chief Counsel, at (202) 366–2992. It is requested, but not required, that 2 copies of the comment be provided. 10 17 E:\FR\FM\22SEN1.SGM CFR 200.30–3(a)(12). 22SEN1

Agencies

[Federal Register Volume 74, Number 182 (Tuesday, September 22, 2009)]
[Notices]
[Pages 48333-48335]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-22730]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60660; File Nos. SR-DTC-2009-14, SR-NSCC-2009-07, SR-
FICC-2009-09]


Self-Regulatory Organizations; The Depository Trust Company, 
Fixed Income Clearing Corporation, and National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Changes Relating to Economic Sanctions and Embargo Programs 
Administered and Enforced by the Office of Foreign Assets Control

September 11, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 26, 2009, The 
Depository Trust Company (``DTC''), the National Securities Clearing 
Corporation (``NSCC''), and 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, NSCC, 
and DTC (collectively, ``Clearing Agencies''). The Clearing Agencies 
filed the proposed rule changes pursuant to Section 19(b)(3)(A)(iii) of 
the Act \2\ and Rule 19b-4(f)(4) thereunder \3\ so that the proposals 
were effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule changes 
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 Organizations' Statement of Terms of Substance of 
the Proposed Rule Changes

    The Clearing Agencies are revising their rules to refine the 
obligations of their members or participants concerning the economic 
sanctions and embargo programs administered and enforced by the Office 
of Foreign Assets Control (``OFAC'') of the U.S. Department of the 
Treasury.

[[Page 48334]]

II. Self-Regulatory Organizations' Statement of Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    In their filings with the Commission, the Clearing Agencies 
included statements concerning the purpose of and basis for the 
proposed rule changes and discussed any comments they received on the 
proposed rule changes. The text of these statements may be examined at 
the places specified in Item IV below. The Clearing Agencies have 
prepared summaries, set forth in Sections A, B, and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organizations' Statement of Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    On March 31, 2009, April 1, 2009, and April 22, 2009, FICC, NSCC, 
and DTC, respectively, filed proposed rule changes with the Commission 
to establish new OFAC compliance obligations.\4\ Specifically, the rule 
changes established a new requirement that certain members or 
participants subject to the jurisdiction of the U.S. submit a 
``Confirmation of an OFAC Program'' Letter (``OFAC Letter'') every two 
years. The OFAC Letter is intended to document that the U.S. member or 
participant has implemented a program to conduct appropriate risk-based 
OFAC screening and that the U.S. member or participant confirms that 
activity subject to OFAC sanctions regulations has been excluded from 
business conducted through the Clearing Agencies. The Clearing Agencies 
and Commission received two comment letters in response to those rule 
changes.\5\
---------------------------------------------------------------------------

    \4\ Securities Exchange Act Release No. 59917 (May 14, 2009), 74 
FR 23907 (May 21, 2009).
    \5\ NSCC received one comment letter from the American Bankers 
Association (``ABA'') and one comment letter issued jointly by the 
Securities Industry and Financial Markets Association (``SIFMA'') 
and The Clearing House.
---------------------------------------------------------------------------

    Under this set of rule changes, the Clearing Agencies are revising 
the text of the OFAC Letter to address the concerns expressed in the 
comment letters. In addition, NSCC is amending the language of Rule 2, 
Section 4, of NSCC's Rules and Procedures to exclude Third Party 
Administrator Members and Investment Manager/Agent Member from the 
requirement to submit an OFAC Letter, and FICC is amending Article III, 
Rule 1, Section 7, of FICC's Mortgage Backed Securities Division's 
rules to exclude EPN-Only Members from the requirement to submit an 
OFAC Letter.
1. Certification of OFAC Screening
    Both comment letters asserted that paragraph two of the OFAC Letter 
imposed additional obligations that were inconsistent with OFAC 
guidance and industry standards. After consultation with OFAC and the 
Commission and after further discussions with the commenters, the 
Clearing Agencies have agreed to modify the language of this provision 
in order to clarify that all Clearing Agencies' members or participants 
subject to the jurisdiction of the U.S. (``U.S. Members'') are required 
to screen customer information for OFAC compliance but that the 
screening of customers alone may not be sufficient to address the U.S. 
Member's OFAC obligations.
2. Certification of Exclusion from Business
    Both commentators indicated that the language within the third 
paragraph of the OFAC Letter was too broad and was inconsistent with 
the requirement that U.S. members or participants implement a risk-
based OFAC program. The Clearing Agencies intended this provision to be 
consistent with the U.S. member's or participant's risk-based OFAC 
program; it was not the Clearing Agencies' intent to impose a greater 
burden. Accordingly, the Clearing Agencies, in consultation with OFAC 
and the Commission, have modified the language in the third paragraph 
to clarify that U.S. members or participants will not submit 
transactions they know are subject to OFAC sanctions regulations. When 
determining the U.S. members' or participants' knowledge of activity 
that is subject to OFAC sanctions regulations, the Clearing Agencies 
will utilize standards established pursuant to the OFAC Economic 
Sanctions Enforcement Guidelines.\6\ These guidelines include willfully 
or recklessly violating OFAC sanctions regulations where the U.S. 
member or participant had actual knowledge or reason to know of the 
violation. The Clearing Agencies will rely on determinations made by 
OFAC or other competent authorities to determine whether members or 
participants are in compliance with this obligation.
---------------------------------------------------------------------------

    \6\ The OFAC Economic Sanctions Enforcement Guidelines are set 
forth in 31 CFR Part 501 Appendix A. OFAC has proposed revisions to 
the Economic Sanctions Enforcement Guidelines which are available 
online at https://www.ustreas.gov/offices/enforcement/ofac/policy/enf_guide_09082008.pdf.
---------------------------------------------------------------------------

3. Filing the OFAC Letter and the Associated Fine
    The commenters indicated that the time period for when U.S. members 
or participants must file the OFAC Letter was unclear. In an effort to 
clarify the time period, the Clearing Agencies will make the OFAC 
Letter available for execution by U.S. members or participants on or 
before October 1, 2009. NSCC must receive a validly executed OFAC 
Letter from all U.S. members or participants on or before March 31, 
2010, in order for U.S. members or participants to satisfy the 
obligations imposed under these proposed rules. U.S. members or 
participants that fail to provide the Clearing Agencies with the OFAC 
Letter by March 31, 2010, will be subject to a $5,000 fine for failure 
to provide the initial OFAC Letter. This fine is imposed for failure to 
provide documentation required under the Clearing Agencies' rules and 
the Clearing Agencies reserve the right to impose further fines or 
penalties up to and including ceasing to act on behalf of the member or 
participant for violation of the rules relating to the obligation of 
the member or participant to comply with OFAC sanctions regulations.
    The OFAC Letter must be executed every two years from the date on 
which the current OFAC Letter was executed. Therefore, if the OFAC 
Letter executed by the member or participant is dated March 1, 2010, 
the U.S. member or participant must execute and provide the Clearing 
Agencies with an updated OFAC Letter on or before March 1, 2012. 
Because of the potential for different renewal dates, the Clearing 
Agencies will remind each individual U.S. member or participant of the 
expiration of its current OFAC Letter approximately ninety (90) days 
prior to the date due for the updated OFAC Letter. Additionally, the 
Clearing Agencies will send out an Important Notice every two years 
that will remind U.S. members or participants of this obligation 
generally. Although the combination of the Important Notice and the 
individual reminders are intended to remind U.S. members or 
participants about the obligation to execute the updated OFAC Letter, 
it is ultimately the responsibility of the U.S. member or participant 
to satisfy the requirements of the Clearing Agencies' rules regarding 
the OFAC Letter.
    The execution of the OFAC Letter is the legal responsibility of the 
U.S. member or participant and not the responsibility of the Chief 
Compliance Officer, OFAC Compliance Officer, or other representative 
responsible for managing the OFAC compliance program (``Authorized OFAC 
Officer'') of the U.S. member or participant. Therefore, the fine is 
imposed against the U.S. member or participant and is

[[Page 48335]]

the legal obligation of the U.S. member or participant and not the 
Authorized OFAC Officer. To clarify this point, the OFAC Letter has 
been updated to indicate that the Authorized OFAC Officer is signing on 
behalf of the U.S. member or participant.
    The Clearing Agencies believe that proposed rule changes are 
consistent with the requirements of Section 17A of the Act \7\ and the 
rules and regulations thereunder because they will enhance the Clearing 
Agencies' compliance with applicable laws thereby reducing risks and 
associated costs to the Clearing Agencies and their members and 
participants.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Clearing Agencies believe that the proposed rule change will 
not 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

    As part of the process of amending the OFAC Letter, the Clearing 
Agencies solicited and received comments from representatives of the 
industry groups that submitted comments to SR-NSCC-2009-03. The 
Clearing Agencies will notify the Commission of any additional written 
comments they receive.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule changes have become effective upon filing 
pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-
4(f)(4) \9\ thereunder because each of the proposed rule changes 
effects a change in an existing service of one of the Clearing Agencies 
that (i) does not adversely affect the safeguarding of securities or 
funds in the custody or control of the Clearing Agencies or for which 
it is responsible and (ii) does not significantly affect the respective 
rights of the clearing agencies or persons using the service. At any 
time within sixty days of the filing of such rule changes, the 
Commission may summarily abrogate such rule changes 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 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 
changes are 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-DTC-2009-14, SR-NSCC-2009-07, or SR-FICC-2009-09 on the 
subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-DTC-2009-14, SR-NSCC-2009-
07, or SR-FICC-2009-09. At least one of these file numbers 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 Section, 100 F Street, NE., Washington, DC 20549, on 
official business days between the hours of 10 a.m. and 3 p.m. Copies 
of such filings also will be available for inspection and copying at 
DTC's, NSCC's, and FICC's principal offices and on DTC's, NSCC's, and 
FICC's Web sites, respectively at <https://ficc.com/gov/gov.docs. 
jsp?NS-query=#rf>, <https://www.dtcc.com/legal/rule_filings/nscc/2009.php>, and <https://www.dtc.org/impNtc/mor/>. 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-DTC-2009-14, SR-NSCC-2009-07, 
or SR-FICC-2009-09 and should be submitted on or before October 13, 
2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-22730 Filed 9-21-09; 8:45 am]
BILLING CODE 8010-01-P
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