Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Amend the Rules of the Government Securities Division and the Mortgage-Backed Securities Division To Change the Classification of U.S. Branches or Agencies of Non-U.S. Banks From Foreign to U.S. Members, 41908-41909 [2010-17489]

Download as PDF 41908 Federal Register / Vol. 75, No. 137 / Monday, July 19, 2010 / Notices The subject matter of the Closed Meeting scheduled for Thursday, July 22, 2010 will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; Adjudicatory matters; and Other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. also would require advisers to electronically file their brochures with the Commission and the brochures would be available to the public through the Commission’s Web site. At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. Dated: July 14, 2010. Elizabeth M. Murphy, Secretary. Dated: July 15, 2010. Elizabeth M. Murphy, Secretary. [FR Doc. 2010–17599 Filed 7–15–10; 11:15 am] [FR Doc. 2010–17661 Filed 7–15–10; 4:15 pm] SECURITIES AND EXCHANGE COMMISSION BILLING CODE 8010–01–P BILLING CODE 8010–01–P [Release No. 34–62478; File No. SR–FICC– 2010–02] Sunshine Act Meeting jlentini on DSKJ8SOYB1PROD with NOTICES SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Amend the Rules of the Government Securities Division and the MortgageBacked Securities Division To Change the Classification of U.S. Branches or Agencies of Non-U.S. Banks From Foreign to U.S. Members Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Securities and Exchange Commission will hold an Open Meeting on July 21, 2010 at 10 a.m., in the Auditorium, Room L–002. The subject matters of the Open Meeting will be: Item 1: The Commission will consider a recommendation to propose for public comment a new rule and rule and form amendments under the Investment Company Act of 1940, the Securities Act of 1933, and the Securities Exchange Act of 1934, to reform the regulation of distribution fees paid by registered open-end management investment companies (‘‘funds’’). The recommended proposal would provide a new framework for how funds currently use their assets to pay for sales and distribution expenses pursuant to rule 12b-1 under the Investment Company Act, and would revise disclosure requirements for transaction confirmations pursuant to rule 10b-10 under the Securities Exchange Act. Item 2: The Commission will consider whether to adopt amendments to Part 2 of Form ADV and related rules under the Investment Advisers Act of 1940. The amendments would require investment advisers to provide clients with narrative brochures containing plain English descriptions of the advisers’ businesses, services, and conflicts of interest. The amendments VerDate Mar<15>2010 16:24 Jul 16, 2010 Jkt 220001 July 9, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder 2 notice is hereby given that on June 24, 2010, 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 substantially prepared by FICC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The purpose of this proposed rule change is to amend the rules of FICC’s Government Securities Division (‘‘GSD’’) and the Mortgage-Backed Securities Division (‘‘MBSD’’) to change the classification of U.S. branches or agencies of non-U.S. banks from ‘‘foreign’’ to ‘‘U.S. members’’. PO 00000 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00116 Fmt 4703 Sfmt 4703 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 these statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change FICC currently classifies as ‘‘foreign’’ its members that are U.S. branches or agencies of non-U.S. banks (‘‘U.S. Branches’’). FICC is proposing to amend the rules of the GSD and MBSD to classify such U.S. Branches as U.S. members, based particularly on the rationale that such U.S. Branches are regulated by U.S. and or state regulators. The proposed rule change harmonizes FICC’s rules with those of its affiliates, The Depository Trust Company and National Securities Clearing Corporation, which presently classify U.S. branches of foreign banks as domestic members (based on domestic regulation).3 The proposed rule change reflects that the U.S. Branches are regulated by a U.S. regulator and/or state regulator so that an insolvency of such a member would be determined by applicable domestic ‘‘ring-fence’’ laws.4 The appropriate domestic regulator treats U.S. Branches as U.S. entities for most significant matters. Under the proposed rule changes, such members will be treated as domestic members for all purposes under FICC’s rules and procedures, unless FICC states otherwise in the Rules.5 3 This is reflected in Section 2 of DTC’s Policy Statements on the Admission of Participants, and Addendum O of NSCC’s Rules entitled ‘‘Admission of Non-U.S. Entities as Direct NSCC Members’’. 4 In the United States, ‘‘ring-fencing’’ refers to the procedure for dealing with branches of agencies of insolvent foreign banks in the United States pursuant to which the state or federal regulator, as applicable, will seize and administer the local assets of an insolvent institution, with a preference for local creditors, in a liquidation that is separate from the liquidation of the parent foreign bank as a whole. 5 For example, if this Rule change is approved such members will no longer be required to submit annual updates to their foreign legal opinions unless FICC deems it necessary to address legal risk. Applicants in this category will, however, continue to be required to submit an initial foreign E:\FR\FM\19JYN1.SGM 19JYN1 Federal Register / Vol. 75, No. 137 / Monday, July 19, 2010 / Notices FICC believes the proposed rule change is consistent with the requirements of Section 17A of the Act 6 and the rules and regulations thereunder because the proposed modifications would facilitate FICC’s prompt and accurate clearance and settlement of securities transactions by providing consistent treatment to Members that are regulated by a U.S. and/or state regulator and that are subject to a domestic insolvency regime. B. Self-Regulatory Organization’s Statement on Burden on Competition FICC does not believe that the proposed rule change would 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 have not been solicited or received. FICC will notify the Commission of any written comments received by FICC. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within thirty-five days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to ninety days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve the proposed rule change or (B) Institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: jlentini on DSKJ8SOYB1PROD with NOTICES Electronic Comments Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. authority.7 Florence E. Harmon, Deputy Secretary. BILLING CODE 8011–01–P legal opinion on their home country law with their membership application. 6 15 U.S.C. 78q–1. VerDate Mar<15>2010 16:24 Jul 16, 2010 Jkt 220001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62489; File No. SR–MSRB– 2010–05] Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Notice of Filing of Proposed All submissions should refer to File Rule Change Relating to the Number SR–FICC–2010–02. This file Continuing Disclosure Service of the number should be included on the subject line if e-mail is used. To help the MSRB Electronic Municipal Market Access (EMMA) System Commission process and review your comments more efficiently, please use July 13, 2010. only one method. The Commission will Pursuant to section 19(b)(1) of the post all comments on the Commission’s Securities Exchange Act of 1934 Internet Web site (https://www.sec.gov/ (‘‘Act’’),1 and Rule 19b–4 thereunder,2 rules/sro.shtml). Copies of the notice is hereby given that on June 30, submission, all subsequent 2010, the Municipal Securities Rulemaking Board (‘‘MSRB’’) filed with amendments, all written statements the Securities and Exchange with respect to the proposed rule Commission (‘‘Commission’’) the change that are filed with the proposed rule change as described in Commission, and all written Items I, II, and III below, which Items communications relating to the have been prepared by the MSRB. The proposed rule change between the Commission and any person, other than Commission is publishing this notice to solicit comments on the proposed rule those that may be withheld from the change from interested persons. public in accordance with the provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s available for Web site viewing and Statement of the Terms of Substance of printing in the Commission’s Public the Proposed Rule Change Reference Section, 100 F Street, NE., The MSRB has filed with the Washington, DC 20549–1090, on official Commission a proposed rule change to business days between the hours of 10 amend the continuing disclosure service a.m. and 3 p.m. Copies of such filings of its Electronic Municipal Market will also be available for inspection and Access (‘‘EMMA’’) system to reflect copying at the principal office of the recent Commission amendments to FICC and on FICC’s Web site at Securities Exchange Act Rule 15c2–12 https://www.dtcc.com/downloads/legal/ (‘‘Exchange Act Rule 15c2–12’’). The MSRB requests an effective date for the rule_filings/2009/ficc/2009-02.pdf. All comments received will be posted proposed rule change of a date to be announced by the MSRB in a notice without change; the Commission does published on the MSRB Web site, which not edit personal identifying date shall be no later than December 1, information from submissions. You 2010 and shall be announced no later should submit only information that than five (5) business days prior to the you wish to make available publicly. All effective date. submissions should refer to File The text of the proposed rule change Number SR–FICC–2010–02 and should is available on the MSRB’s Web site at be submitted on or before August 9, www.msrb.org/Rules-and2010. Interpretations/SEC-Filings.aspx, at the MSRB’s principal office, and at the For the Commission by the Division of Commission’s Public Reference Room. Trading and Markets, pursuant to delegated [FR Doc. 2010–17489 Filed 7–16–10; 8:45 am] • Use the Commissions 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– FICC–2010–02 on the subject line. 41909 PO 00000 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis For, the Proposed Rule Change In its filing with the Commission, the MSRB included statements concerning the purpose of and basis for the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The MSRB has prepared summaries, set 1 15 7 17 CFR 200.30–3(a)(12). Frm 00117 Fmt 4703 Sfmt 4703 2 17 E:\FR\FM\19JYN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 19JYN1

Agencies

[Federal Register Volume 75, Number 137 (Monday, July 19, 2010)]
[Notices]
[Pages 41908-41909]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17489]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62478; File No. SR-FICC-2010-02]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing of Proposed Rule Change To Amend the Rules of the 
Government Securities Division and the Mortgage-Backed Securities 
Division To Change the Classification of U.S. Branches or Agencies of 
Non-U.S. Banks From Foreign to U.S. Members

July 9, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given that 
on June 24, 2010, 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 substantially prepared by FICC. 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\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The purpose of this proposed rule change is to amend the rules of 
FICC's Government Securities Division (``GSD'') and the Mortgage-Backed 
Securities Division (``MBSD'') to change the classification of U.S. 
branches or agencies of non-U.S. banks from ``foreign'' to ``U.S. 
members''.

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 these 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    FICC currently classifies as ``foreign'' its members that are U.S. 
branches or agencies of non-U.S. banks (``U.S. Branches''). FICC is 
proposing to amend the rules of the GSD and MBSD to classify such U.S. 
Branches as U.S. members, based particularly on the rationale that such 
U.S. Branches are regulated by U.S. and or state regulators. The 
proposed rule change harmonizes FICC's rules with those of its 
affiliates, The Depository Trust Company and National Securities 
Clearing Corporation, which presently classify U.S. branches of foreign 
banks as domestic members (based on domestic regulation).\3\
---------------------------------------------------------------------------

    \3\ This is reflected in Section 2 of DTC's Policy Statements on 
the Admission of Participants, and Addendum O of NSCC's Rules 
entitled ``Admission of Non-U.S. Entities as Direct NSCC Members''.
---------------------------------------------------------------------------

    The proposed rule change reflects that the U.S. Branches are 
regulated by a U.S. regulator and/or state regulator so that an 
insolvency of such a member would be determined by applicable domestic 
``ring-fence'' laws.\4\ The appropriate domestic regulator treats U.S. 
Branches as U.S. entities for most significant matters. Under the 
proposed rule changes, such members will be treated as domestic members 
for all purposes under FICC's rules and procedures, unless FICC states 
otherwise in the Rules.\5\
---------------------------------------------------------------------------

    \4\ In the United States, ``ring-fencing'' refers to the 
procedure for dealing with branches of agencies of insolvent foreign 
banks in the United States pursuant to which the state or federal 
regulator, as applicable, will seize and administer the local assets 
of an insolvent institution, with a preference for local creditors, 
in a liquidation that is separate from the liquidation of the parent 
foreign bank as a whole.
    \5\ For example, if this Rule change is approved such members 
will no longer be required to submit annual updates to their foreign 
legal opinions unless FICC deems it necessary to address legal risk. 
Applicants in this category will, however, continue to be required 
to submit an initial foreign legal opinion on their home country law 
with their membership application.

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

[[Page 41909]]

    FICC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act \6\ and the rules and 
regulations thereunder because the proposed modifications would 
facilitate FICC's prompt and accurate clearance and settlement of 
securities transactions by providing consistent treatment to Members 
that are regulated by a U.S. and/or state regulator and that are 
subject to a domestic insolvency regime.
---------------------------------------------------------------------------

    \6\ 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 would 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 have not been 
solicited or received. FICC will notify the Commission of any written 
comments received by FICC.

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

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    (A) By order approve the proposed rule change or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commissions 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-FICC-2010-02 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-FICC-2010-02. 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 Web site viewing and 
printing in the Commission's Public Reference Section, 100 F Street, 
NE., Washington, DC 20549-1090, on official business days between the 
hours of 10 a.m. and 3 p.m. Copies of such filings will also be 
available for inspection and copying at the principal office of the 
FICC and on FICC's Web site at https://www.dtcc.com/downloads/legal/rule_filings/2009/ficc/2009-02.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-FICC-2010-02 
and should be submitted on or before August 9, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-17489 Filed 7-16-10; 8:45 am]
BILLING CODE 8011-01-P
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