Self-Regulatory Organizations; The National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Set the Effective Date for the Elimination of the Guaranty of Payment With Respect to Its Envelope Settlement Service, 16886-16887 [2010-7465]
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16886
Federal Register / Vol. 75, No. 63 / Friday, April 2, 2010 / Notices
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of the
MSRB. 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–MSRB–2010–02 and should
be submitted on or before April 23,
2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–7463 Filed 4–1–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–61798; File No. SR–NSCC–
2010–04]
Self-Regulatory Organizations; The
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Set the Effective Date
for the Elimination of the Guaranty of
Payment With Respect to Its Envelope
Settlement Service
March 29, 2010.
mstockstill on DSKH9S0YB1PROD with NOTICES
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
March 8, 2010, 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.
NSCC filed the proposal pursuant to
section 19(b)(3)(A)(i) of the Act 2 and
Rule 19b–4(f)(1) 3 thereunder so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the rule change from
interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The proposed rule change will set the
effective date for the elimination of a
guarantee of payment (and associated
rule changes) with respect to NSCC’s
29 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78s(b)(3)(A)(i).
3 17 CFR 240.19b–4(f)(1).
1 15
VerDate Nov<24>2008
16:40 Apr 01, 2010
Jkt 220001
Envelope Settlement Service (‘‘ESS’’) as
of April 1, 2010.
adjust their processes and systems as
necessary to accommodate the changes.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
NSCC does not believe that the
proposed rule change will have any
impact or impose any burden on
competition.
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.4
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
On March 1, 2010, the Commission
approved rule filing SR–NSCC–2010–01
(‘‘Approved Filing’’) relating to NSCC’s
elimination of the guarantee of payment
in connection with ESS.5 Specifically,
the approval will give effect to specified
changes to Rule 9, Addendum D,
Addendum K, and Procedure XV of
NSCC’s rules and procedures as set forth
in Exhibit 5 of the Approved Filing, to:
(1) Eliminate NSCC’s guaranty of the
payment to the receiving NSCC member
in an ESS delivery, (2) provide that the
credits and debits of the payment
amount of an envelope may be reversed,
and (3) eliminate clearing fund deposits
allocated to ESS. In order to afford
members a transitional period to
prepare for these changes, NSCC is
proposing to implement the changes on
April 1, 2010.
The proposed rule change is
consistent with Section 17A of the Act,6
as amended, and the rules and
regulations thereunder applicable to
NSCC. The proposed rule change will
protect NSCC’s net settlement process
while continuing to provide a central
delivery point for physical deliveries of
envelopes with constrained payment
processing. The changes will reduce
NSCC’s exposure to potential losses
from member defaults, insolvencies,
mistakes, and fraud and will
appropriately shift the risk outside
NSCC to the contracting members in an
ESS transaction. The interim period for
implementation will permit members to
4 The Commission has modified the text of the
summaries prepared by NSCC.
5 See Securities Exchange Act Release No. 61618
(March 1, 2010), 75 FR 10542 (March 8, 2010) (SR–
NSCC–2010–01).
6 15 U.S.C. 78q–1.
PO 00000
Frm 00168
Fmt 4703
Sfmt 4703
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments relating to the
proposed rule change were not and are
not intended to be 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 proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A)(i) of the
Act 7 and Rule 19b–4(f)(1) 8 thereunder
because the proposed rule change
constitutes a stated policy, practice, or
interpretation with respect to the
meaning, administration or enforcement
of an existing rule. At any time within
sixty 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
Number SR–NSCC–2010–04 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–2010–04. This file
7 15
8 17
E:\FR\FM\02APN1.SGM
U.S.C. 78s(b)(3)(A)(i).
CFR 240.19b–4(f)(1).
02APN1
Federal Register / Vol. 75, No. 63 / Friday, April 2, 2010 / Notices
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 Web site viewing and
printing 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 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/downloads/legal/
rule_filings/2010/nscc/2010-04.pdf. 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–2010–04 and should
be submitted on or before April 23,
2010.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–7465 Filed 4–1–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
mstockstill on DSKH9S0YB1PROD with NOTICES
[Release No. 34–61796; File No. SR–Phlx–
2010–20]
Self-Regulatory Organizations;
NASDAQ OMX PHLX, Inc.; Order
Granting Approval of Proposed Rule
Change To Expand the Number of
Components in the PHLX
Semiconductor SectorSM Known as
SOXSM, on Which Options are Listed
and Traded
March 29, 2010.
On February 2, 2010, NASDAQ OMX
PHLX, Inc. (‘‘Phlx’’ or ‘‘Exchange’’) filed
9 17
CFR 200.30–3(a)(12).
VerDate Nov<24>2008
16:40 Apr 01, 2010
Jkt 220001
with the Securities and Exchange
Commission (‘‘Commission’’) a proposed
rule change pursuant to Section 19(b)(1)
of the Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 2 thereunder to
expand the number of components in
the PHLX Semiconductor SectorSM
known as SOXSM, on which options are
listed and traded.3 The proposed rule
change was published for comment in
the Federal Register on February 25,
2010 for a 21-day comment period.4 The
Commission received no comment
letters regarding the proposal. This
order approves the proposed rule
change.
SOX is a modified market
capitalization-weighted index composed
of twenty-one companies primarily
involved in the design, distribution,
manufacture, and sale of
semiconductors, and is one of several
narrow-based sector indexes on which
options are listed and traded on the
Exchange. Options on the SOX index
are currently listed pursuant to
‘‘generic’’ initial listing and maintenance
standards in Phlx Rule 1009A for
narrow-based indexes.5 The Exchange
proposes to expand the number of
components in the SOX index to thirty.
The Exchange represents that the
expanded SOX index would continue to
meet all the index maintenance
requirements in subsection (c) of Rule
1009A applicable to options on narrowbased indexes, except subsection (c)(2),
which indicates that the total number of
component securities in the index may
not increase or decrease by more than
331⁄3% from the total number of
securities in the index at the time of its
initial listing.
After careful consideration, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange 6 and, in
particular, the requirements of Section 6
of the Act.7 Specifically, the
Commission finds that the proposed
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 PHLX Semiconductor SectorSM may also be
known as PHLX Semiconductor Index or PHLX
Semiconductor SectorSM Index.
4 See Securities Exchange Act Release No. 61539
(February 18, 2010), 75 FR 8765 (‘‘Notice’’).
5 A narrow-based index or industry index is
defined as: An index designed to be representative
of a particular industry or a group of related
industries. The term ‘‘narrow-based index’’ includes
indices the constituents of which are all
headquartered within a single country. See Phlx
Rule 1000A(b)(12).
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
7 15 U.S.C. 78f.
2 17
PO 00000
Frm 00169
Fmt 4703
Sfmt 4703
16887
rule change is consistent with Section
6(b)(5) of the Act,8 which requires,
among other things, that the rules of a
national securities exchange be
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system.
Listing and Trading of Options on the
SOX Index
As set out more fully in the Notice,
Phlx has represented that options on an
expanded thirty-component SOX index
would continue to meet all of the initial
and maintenance generic index listing
standards contained in Sections (b) and
(c) of Phlx Rule 1009A except
subsection (c)(2) of Phlx Rule 1009A.
Subsection (c)(2) of Phlx Rule 1009A
only permits a maximum increase of
331⁄3% from the total number of
securities in the index at the time of its
initial listing, i.e., an increase to 28
components, whereas Phlx proposes an
increase to 30 components.
Additionally, the Exchange has
represented that no other changes are
being made to the SOX index as it
currently exists. Based on these
representations, the Commission
believes that the proposed expansion to
the SOX index is appropriate and that
Phlx should continue to be able to list
and trade options on the SOX index.
Surveillance
The Commission notes that the
Exchange has represented that it has an
adequate surveillance program in place
for options traded on the proposed
expanded SOX index and intends to
apply those same program procedures
that it applies to the Exchange’s current
SOX options and other index options.
Additionally, the Exchange is a member
of the Intermarket Surveillance Group
(‘‘ISG’’) under the Intermarket
Surveillance Group Agreement, dated
June 20, 1994.9 In addition, the major
futures exchanges are affiliated
members of the ISG, which allows for
the sharing of surveillance information
for potential intermarket trading abuses.
The Exchange also represented that it
has the necessary systems capacity to
continue to support listing and trading
8 15
U.S.C. 78f(b)(5).
list of the current members and affiliate
members of ISG can be found at https://
www.isgportal.com.
9A
E:\FR\FM\02APN1.SGM
02APN1
]]>Agencies
[Federal Register Volume 75, Number 63 (Friday, April 2, 2010)]
[Notices]
[Pages 16886-16887]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7465]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-61798; File No. SR-NSCC-2010-04]
Self-Regulatory Organizations; The National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Set the Effective Date for the Elimination of the
Guaranty of Payment With Respect to Its Envelope Settlement Service
March 29, 2010.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 8, 2010, 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. NSCC filed the proposal pursuant to section
19(b)(3)(A)(i) of the Act \2\ and Rule 19b-4(f)(1) \3\ thereunder so
that the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the rule
change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(i).
\3\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will set the effective date for the
elimination of a guarantee of payment (and associated rule changes)
with respect to NSCC's Envelope Settlement Service (``ESS'') as of
April 1, 2010.
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.\4\
---------------------------------------------------------------------------
\4\ 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
On March 1, 2010, the Commission approved rule filing SR-NSCC-2010-
01 (``Approved Filing'') relating to NSCC's elimination of the
guarantee of payment in connection with ESS.\5\ Specifically, the
approval will give effect to specified changes to Rule 9, Addendum D,
Addendum K, and Procedure XV of NSCC's rules and procedures as set
forth in Exhibit 5 of the Approved Filing, to: (1) Eliminate NSCC's
guaranty of the payment to the receiving NSCC member in an ESS
delivery, (2) provide that the credits and debits of the payment amount
of an envelope may be reversed, and (3) eliminate clearing fund
deposits allocated to ESS. In order to afford members a transitional
period to prepare for these changes, NSCC is proposing to implement the
changes on April 1, 2010.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 61618 (March 1,
2010), 75 FR 10542 (March 8, 2010) (SR-NSCC-2010-01).
---------------------------------------------------------------------------
The proposed rule change is consistent with Section 17A of the
Act,\6\ as amended, and the rules and regulations thereunder applicable
to NSCC. The proposed rule change will protect NSCC's net settlement
process while continuing to provide a central delivery point for
physical deliveries of envelopes with constrained payment processing.
The changes will reduce NSCC's exposure to potential losses from member
defaults, insolvencies, mistakes, and fraud and will appropriately
shift the risk outside NSCC to the contracting members in an ESS
transaction. The interim period for implementation will permit members
to adjust their processes and systems as necessary to accommodate the
changes.
---------------------------------------------------------------------------
\6\ 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 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
Written comments relating to the proposed rule change were not and
are not intended to be 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 proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)(i) of the Act \7\ and Rule 19b-4(f)(1)
\8\ thereunder because the proposed rule change constitutes a stated
policy, practice, or interpretation with respect to the meaning,
administration or enforcement of an existing rule. At any time within
sixty 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(i).
\8\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
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-2010-04 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-2010-04. This file
[[Page 16887]]
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 Web site viewing and
printing 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 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/downloads/legal/rule_filings/2010/nscc/2010-04.pdf. 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-2010-04 and should be submitted on or before April 23, 2010.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-7465 Filed 4-1-10; 8:45 am]
BILLING CODE 8011-01-P
