Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Move the Canadian Depository for Securities to Risk-Based Margining, 64800-64801 [E9-29132]
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Federal Register / Vol. 74, No. 234 / Tuesday, December 8, 2009 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61089; File No. SR–NSCC–
2009–09]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Move the Canadian
Depository for Securities to RiskBased Margining
December 1, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
October 30, 2009, the National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which items
have been prepared primarily by NSCC.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the proposed rule
change is to move the Canadian
Depository for Securities Clearing and
Depository Services Inc. (‘‘CDS’’) to riskbased margining (‘‘RBM’’).
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NSCC 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. NSCC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.2
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In 2001, NSCC introduced a RBM
approach to calculating Clearing Fund
requirements for settling members. The
RBM approach includes, but is not
limited to, calculations based on
portfolio volatility and, where
1 15
U.S.C. 78s(b)(1).
Commission has modified the text of the
summaries prepared by NSCC.
2 The
VerDate Nov<24>2008
15:16 Dec 07, 2009
Jkt 220001
applicable, market maker domination.3
This approach was implemented over
time to extend to most NSCC members.
The formula for the calculation of
Clearing Fund requirements under the
RBM approach is set forth in Procedure
XV (Clearing Fund and Other Matters)
of NSCC’s Rules and Procedures
(‘‘Rules’’). Presently, the only member
that has not migrated to RBM is CDS,
which is currently margined pursuant to
a volume based formula outlined in
Appendix 1 of the Rules.
RBM more accurately reflects NSCC’s
exposure than the formula set forth in
Appendix 1 because it enables NSCC to
more precisely identify the risks posed
by a member’s unsettled portfolio and,
as a result, more quickly adjust and
collect additional Clearing Fund
deposits. Therefore, effective November
2, 2009 (‘‘Conversion Date’’), NSCC
moved CDS to the Clearing Fund
formula set forth in Procedure XV.
Because Appendix 1 is now obsolete,
NSCC is removing Appendix 1 from the
Rules effective as of the Conversion
Date.4
NSCC believes that the proposed rule
change is consistent with the
requirements of Section 17A of the Act 5
and the rules and regulations
thereunder applicable to NSCC because
the proposed rule change should
enhance NSCC’s ability to ensure
adequate collateral levels are
maintained to facilitate settlement in the
event of a member default by
eliminating the non-RBM-based
Clearing Fund formula and thereby.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
NSCC does not believe that the
proposed rule change will have any
impact on or impose any burden on
competition.
3 Securities Exchange Act Release No. 44431
(June 15, 2001), 66 FR 33280 [File No. SR–NSCC–
2001–04].
4 NSCC’s Rules provide NSCC with the discretion
to modify the deadline by which a member must
satisfy it Clearing Fund requirement. Presently, the
deadline for all members subject to RBM to satisfy
their Clearing Fund requirement is 10 am. CDS has
requested a 2 hour extension (to 12 pm New York
Time) for a period of six months beginning on the
Conversion Date to facilitate its transition to the
new Clearing Fund calculation. NSCC has
determined to grant this extension. The extension
is necessary to allow: (i) CDS members the
opportunity to fund their NSCC related deficit at
CDS on a daily basis (currently, CDS is required to
satisfy its Clearing Fund requirement on a weekly
basis) and in U.S. dollars rather than in Canadian
Treasuries as is allowed today and (ii) time for CDS
to gain regulatory approval to set its deadline for
collection from its member firms to a time that
would allow for it to meet the 10 am deadline.
5 15 U.S.C. 78q–1.
PO 00000
Frm 00141
Fmt 4703
Sfmt 4703
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments relating to the
proposed rule change have been
solicited or received. NSCC will notify
the Commission of any written
comments received by NSCC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective upon filing pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and Rule
19b–4(f)(4) 7 thereunder because the
proposed rule change effects a change in
an existing service of NSCC that (i) does
not adversely affect the safeguarding of
securities or funds in the custody or
control of NSCC or for which it is
responsible and (ii) does not
significantly affect the respective rights
of the clearing agency or persons using
the service. At any time within sixty
days of the filing of such 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
Number SR–NSCC–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
Number SR–NSCC–2009–09. 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
6 15
7 17
E:\FR\FM\08DEN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(4).
08DEN1
Federal Register / Vol. 74, No. 234 / Tuesday, December 8, 2009 / Notices
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
the principal office of NSCC and on
NSCC’s Web site at https://
www.dtcc.com/legal/rule_filings/nscc/
2009.php. 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–NSCC–
2009–09 and should be submitted on or
before December 29, 2009.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.8
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–29132 Filed 12–7–09; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
Agency Information Collection
Activities: Proposed Request and
Comment Request
The Social Security Administration
(SSA) publishes a list of information
collection packages requiring clearance
by the Office of Management and
Budget (OMB) in compliance with
Public Law (Pub. L.) 104–13, the
Paperwork Reduction Act of 1995,
effective October 1, 1995. This notice
includes revisions to and extensions of
OMB-approved information collections.
SSA is soliciting comments on the
accuracy of the agency’s burden
estimate; the need for the information;
its practical utility; ways to enhance its
quality, utility, and clarity; and ways to
minimize the burden on respondents,
including the use of automated
collection techniques or other forms of
information technology. Mail, email, or
fax your comments and
recommendations on the information
collection(s) to the OMB Desk Officer
and the SSA Director for Reports
Clearance to the addresses or fax
numbers shown below.
(OMB), Office of Management and
Budget, Attn: Desk Officer for SSA, Fax:
202–395–6974, E-mail address:
OIRA_Submion@omb.eop.gov.
(SSA), Social Security
Administration, DCBFM, Attn: Director,
Center for Reports Clearance, 1333
Annex Building, 6401 Security Blvd.,
Baltimore, MD 21235, Fax: 410–965–
0454, E-mail address:
OPLM.RCO@ssa.gov.
I. The information collection below is
pending at SSA. SSA will submit it to
OMB within 60 days from the date of
this notice. To be sure we consider your
comments, we must receive them no
later than February 8, 2010. Individuals
can obtain copies of the collection
instrument by calling the SSA Director
for Reports Clearance at 410–965–0454
or by writing to the above e-mail
address.
1. Farm Self-Employment
Questionnaire—20 CFR 404.1082(c) &
404.1095—0960–0061. Section 211(a) of
the Social Security Act requires the
existence of a trade or business as a
prerequisite for determining whether an
Number of
respondents
Form number
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
SSA–637 ..............................................................................
SSA–639 ..............................................................................
Totals ....................................................................................
3. Certification of Prisoner Identity
Information—20 CFR 422.107—0960–
0688. This regulation stipulates when a
valid agreement is in place, prison
officials verify the identity of certain
incarcerated U.S. citizens who need
8 17
2,001
9,341
11,342
individual or partnership may have net
earnings from self-employment. During
a personal interview, the requesting
Social Security field office uses Form
SSA–7165 to elicit the information
necessary to determine the existence of
an agricultural trade or business and
subsequent covered earnings for Social
Security entitlement purposes. The
respondents are applicants for Social
Security benefits, whose entitlement
depends on whether the worker has
covered earnings from self-employment
as a farmer.
Type of Request: Extension of an
OMB-approved information collection.
Number of Respondents: 47,500.
Frequency of Response: 1.
Average Burden Per Response: 10
minutes.
Estimated Annual Burden: 7,917
hours.
2. Site Review Questionnaire for
Volume and Fee-for-Service Payees and
Beneficiary Interview Form—20 CFR
404.2035, 404.2065, 416.665, 416.701,
and 416.708—0960–0633. SSA uses the
SSA–637, Site Review Questionnaire for
Volume and Fee-for-Service Payees, to
obtain information from the payee about
how the organization operates and
carries out its representative payee
responsibilities, including how it
manages beneficiary funds. We then use
the SSA–639, Beneficiary Interview
Form, to obtain information from the
beneficiaries to help corroborate the
payee’s statements. Due to the
sensitivity of the information, SSA
employees always complete the forms
based on the answers respondents give
during the interview. The respondents
are individuals, State and local
governments, non-profit and for-profit
organizations that serve as
representative payees and the
beneficiaries they serve.
Type of Request: Extension of an
OMB-approved information collection.
Frequency
of response
Average burden
per response
(minutes)
1
1
........................
2 hours ......................................
10 minutes ................................
...................................................
replacement Social Security cards.
Information the prison officials provide
will come from the official prison files,
sent on prison letterhead. SSA uses this
information to establish the applicant’s
identity in the replacement Social
15:16 Dec 07, 2009
Jkt 220001
PO 00000
Frm 00142
Fmt 4703
Sfmt 4703
Total annual
burden
(hours)
4,002
1,557
5,559
Security card process. The respondents
are prison officials who certify the
identity of prisoners applying for
replacement Social Security cards.
Type of Request: Extension of an
OMB-approved information collection.
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
64801
E:\FR\FM\08DEN1.SGM
08DEN1
]]>Agencies
[Federal Register Volume 74, Number 234 (Tuesday, December 8, 2009)]
[Notices]
[Pages 64800-64801]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29132]
[[Page 64800]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61089; File No. SR-NSCC-2009-09]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Move the Canadian Depository for Securities to Risk-
Based Margining
December 1, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 30, 2009, the
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change described in Items I, II, and III below, which items have been
prepared primarily by NSCC. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to move the Canadian
Depository for Securities Clearing and Depository Services Inc.
(``CDS'') to risk-based margining (``RBM'').
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\2\
---------------------------------------------------------------------------
\2\ The Commission has modified the text of the summaries
prepared by NSCC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In 2001, NSCC introduced a RBM approach to calculating Clearing
Fund requirements for settling members. The RBM approach includes, but
is not limited to, calculations based on portfolio volatility and,
where applicable, market maker domination.\3\ This approach was
implemented over time to extend to most NSCC members. The formula for
the calculation of Clearing Fund requirements under the RBM approach is
set forth in Procedure XV (Clearing Fund and Other Matters) of NSCC's
Rules and Procedures (``Rules''). Presently, the only member that has
not migrated to RBM is CDS, which is currently margined pursuant to a
volume based formula outlined in Appendix 1 of the Rules.
---------------------------------------------------------------------------
\3\ Securities Exchange Act Release No. 44431 (June 15, 2001),
66 FR 33280 [File No. SR-NSCC-2001-04].
---------------------------------------------------------------------------
RBM more accurately reflects NSCC's exposure than the formula set
forth in Appendix 1 because it enables NSCC to more precisely identify
the risks posed by a member's unsettled portfolio and, as a result,
more quickly adjust and collect additional Clearing Fund deposits.
Therefore, effective November 2, 2009 (``Conversion Date''), NSCC moved
CDS to the Clearing Fund formula set forth in Procedure XV. Because
Appendix 1 is now obsolete, NSCC is removing Appendix 1 from the Rules
effective as of the Conversion Date.\4\
---------------------------------------------------------------------------
\4\ NSCC's Rules provide NSCC with the discretion to modify the
deadline by which a member must satisfy it Clearing Fund
requirement. Presently, the deadline for all members subject to RBM
to satisfy their Clearing Fund requirement is 10 am. CDS has
requested a 2 hour extension (to 12 pm New York Time) for a period
of six months beginning on the Conversion Date to facilitate its
transition to the new Clearing Fund calculation. NSCC has determined
to grant this extension. The extension is necessary to allow: (i)
CDS members the opportunity to fund their NSCC related deficit at
CDS on a daily basis (currently, CDS is required to satisfy its
Clearing Fund requirement on a weekly basis) and in U.S. dollars
rather than in Canadian Treasuries as is allowed today and (ii) time
for CDS to gain regulatory approval to set its deadline for
collection from its member firms to a time that would allow for it
to meet the 10 am deadline.
---------------------------------------------------------------------------
NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \5\ and the rules and
regulations thereunder applicable to NSCC because the proposed rule
change should enhance NSCC's ability to ensure adequate collateral
levels are maintained to facilitate settlement in the event of a member
default by eliminating the non-RBM-based Clearing Fund formula and
thereby.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will have any
impact on 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
No written comments relating to the proposed rule change have been
solicited or received. NSCC will notify the Commission of any written
comments received by NSCC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(iii) of the Act \6\ and Rule 19b-4(f)(4) \7\
thereunder because the proposed rule change effects a change in an
existing service of NSCC that (i) does not adversely affect the
safeguarding of securities or funds in the custody or control of NSCC
or for which it is responsible and (ii) does not significantly affect
the respective rights of the clearing agency or persons using the
service. At any time within sixty days of the filing of such 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 Number SR-NSCC-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 Number SR-NSCC-2009-09. 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
[[Page 64801]]
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 the
principal office of NSCC and on NSCC's Web site at https://www.dtcc.com/legal/rule_filings/nscc/2009.php. 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-NSCC-2009-09 and should be submitted on or before
December 29, 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. E9-29132 Filed 12-7-09; 8:45 am]
BILLING CODE 8011-01-P
