Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules Relating to Authority To Suspend or Waive NSCC Rules and Procedures, 54681-54682 [2010-22349]

Download as PDF Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices 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, 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 DTC and on DTC’s Web site, https:// www.dtcc.com. 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–DTC– 2010–11 and should be submitted on or before September 29, 2010. For the Commission by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–22350 Filed 9–7–10; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62794; File No. SR–NSCC– 2010–08] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules Relating to Authority To Suspend or Waive NSCC Rules and Procedures jlentini on DSKJ8SOYB1PROD with NOTICES August 30, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on August 23, 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.2 NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) and 11 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 The text of the proposed rule change is attached as Exhibit 5 to NSCC’s filing and is available at https://www.dtcc.com/downloands/legal/ rule_filings/2010/nscc/2010–08.pdf. 1 15 VerDate Mar<15>2010 16:41 Sep 07, 2010 Jkt 220001 Rule 19b–4(f)(3) thereunder so that the proposed rule change was effective upon filing with the Commission.3 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 proposed rule change will amend NSCC rules to provide that any officer having a rank of Managing Director or higher is authorized to suspend or waive NSCC rules and procedures. 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 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change The proposed rule change amends Rule 22 of the NSCC’s Rules and Procedures 5 to state that the rules and procedures of NSCC may be suspended or waived by any officer having a rank of Managing Director or higher. Prior to the proposed amendment, Rule 22 provided such authority to officers having a rank of Vice President or higher.6 This proposed rule change will also harmonize NSCC’s rules with those of FICC’s (‘‘FICC’’) Government Securities Division and MortgageBacked Securities Division, and with those of The Depository Trust Company (‘‘DTC’’) as such rules relate to the authority to suspend or waive rules.7 NSCC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act8 3 15 U.S.C. 78s(b)(3)(A)(iii) and 17 CFR 240.19b– 4(f)(3). 4 The Commission has modified the text of the summaries prepared by NSCC. 5 NSCC’s rules are available at https:// www.dtcc.com/legal/rules_proc/dtc_rules.pdf. 6 Managing Director is a more senior level of officer than that of Vice President. 7 On August 20, 2010, FICC filed and on August 23, 2010, DTC filed similar rule changes. Securities Exchange Act Release No. 62796 (August 30, 2010) [SR–FICC–2010–06] and 62795 (August 30, 2010) [File No. SR–DTC–2010–11] respectively. 8 15 U.S.C. 78q–1. PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 54681 and the rules and regulations thereunder that are applicable to NSCC because the proposed rule will require a more senior level of management to authorize a suspension or waiver of the NSCC rules under the proposed rule change, thereby ensuring more equitable compliance with NSCC’s rules and procedures. (B) Self-Regulatory Organization’s Statement on Burden on Competition NSCC does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. (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 the 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 9 and Rule 19b–4(f)(3) 10 thereunder because it is concerned solely with the administration of NSCC. At any time within sixty days of the filing of such rule change, the Commission summarily may temporarily suspend 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–2010–08 on the subject line. 9 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(3). 10 17 E:\FR\FM\08SEN1.SGM 08SEN1 54682 Federal Register / Vol. 75, No. 173 / Wednesday, September 8, 2010 / Notices Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62805; File No. SR–ISE– 2010–90] Self-Regulatory Organizations; International Securities Exchange, All submissions should refer to File LLC; Notice of Filing and Immediate Number SR–NSCC–2010–08. This file Effectiveness of a Proposed Rule number should be included on the subject line if e-mail is used. To help the Change Relating to Fees and Rebates for Adding and Removing Liquidity Commission process and review your comments more efficiently, please use August 31, 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 (the 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 August submission, all subsequent 24, 2010, the International Securities amendments, all written statements Exchange, LLC (the ‘‘Exchange’’ or the with respect to the proposed rule ‘‘ISE’’) filed with the Securities and change that are filed with the Exchange Commission the proposed Commission, and all written rule change, as described in Items I and communications relating to the II below, which items have been proposed rule change between the Commission and any person, other than prepared by the self-regulatory organization. The Commission is those that may be withheld from the publishing this notice to solicit public in accordance with the comments on the proposed rule change provisions of 5 U.S.C. 552, will be from interested persons. available for website viewing and printing in the Commission’s Public I. Self-Regulatory Organization’s Reference Section, 100 F Street, NE., Statement of the Terms of Substance of Washington, DC 20549, on official the Proposed Rule Change business days between the hours of 10 a.m. and 3 p.m. Copies of such filings The ISE is proposing to amend its also will be available for inspection and transaction fees and rebates for adding copying at the principal office of NSCC and removing liquidity. The text of the and on NSCC’s Web site, https:// proposed rule change is available on the www.dtcc.com. All comments received Exchange’s Web site (https:// will be posted without change; the www.ise.com), at the principal office of Commission does not edit personal the Exchange, at the Commission’s identifying information from Public Reference Room, and on the submissions. You should submit only Commission’s Web site at https:// information that you wish to make www.sec.gov. available publicly. All submissions II. Self-Regulatory Organization’s should refer to File Number SR–NSCC– Statement of the Purpose of, and 2010–08 and should be submitted on or Statutory Basis for, the Proposed Rule before September 29, 2010. Change For the Commission by the Division of Trading and Markets, pursuant to delegated authority.11 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–22349 Filed 9–7–10; 8:45 am] jlentini on DSKJ8SOYB1PROD with NOTICES BILLING CODE 8010–01–P In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. 1 15 11 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:41 Sep 07, 2010 2 17 Jkt 220001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00097 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to increase liquidity and attract order flow by amending its transaction fees and rebates for adding and removing liquidity (‘‘maker/taker fees’’).3 The Exchange’s maker/taker fees currently apply to the following categories of market participants: (i) Market Maker; (ii) Market Maker Plus; 4 (iii) Non-ISE Market Maker; 5 (iv) Firm Proprietary; (v) Customer (Professional); 6 (vi) Priority Customer,7 100 or more 3 These fees are similar to the ‘‘maker/taker’’ fees currently assessed by NASDAQ OMX PHLX (‘‘PHLX’’). PHLX currently charges a fee for removing liquidity to the following class of market participants: (i) Customer, (ii) Directed Participant, (iii) Specialist, ROT, SQT and RSQT, (iv) Firm, (v) Broker-Dealer, and (vi) Professional. PHLX also provides a rebate for adding liquidity to the following class of market participants: (i) Customer, (ii) Directed Participant, (iii) Specialist, ROT, SQT and RSQT, and (iv) Professional. PHLX also charges a fee for adding liquidity to the following class of market participants: (i) Firm, and (ii) Broker-Dealer. See Securities Exchange Act Release Nos. 61684 (March 10, 2010), 75 FR 13189 (March 18, 2010); 61932 (April 16, 2010), 75 FR 21375 (April 23, 2010); 61961 (April 22, 2010), 75 FR 22881 (April 30, 2010); and 62472 (July 8, 2010), 75 FR 41250 (July 15, 2010). 4 A Market Maker Plus is a market maker who is on the National Best Bid or National Best Offer 80% of the time for series trading between $0.03 and $5.00 (for options whose underlying stock’s previous trading day’s last sale price was less than or equal to $100) and between $0.10 and $5.00 (for options whose underlying stock’s previous trading day’s last sale price was greater than $100) in premium in each of the front two expiration months and 80% of the time for series trading between $0.03 and $5.00 (for options whose underlying stock’s previous trading day’s last sale price was less than or equal to $100) and between $0.10 and $5.00 (for options whose underlying stock’s previous trading day’s last sale price was greater than $100) in premium across all expiration months in order to receive the rebate. The Exchange determines whether a market maker qualifies as a Market Maker Plus at the end of each month by looking back at each market maker’s quoting statistics during that month. If at the end of the month, a market maker meets the Exchange’s stated criteria, the Exchange rebates $0.10 per contract for transactions executed by that market maker during that month. The Exchange provides market makers a report on a daily basis with quoting statistics so that market makers can determine whether or not they are meeting the Exchange’s stated criteria. 5 A Non-ISE Market Maker, or Far Away Market Maker (‘‘FARMM’’), is a market maker as defined in Section 3(a)(38) of the Securities Exchange Act of 1934, as amended (‘‘Exchange Act’’), registered in the same options class on another options exchange. 6 A Customer (Professional) is a person who is not a broker/dealer and is not a Priority Customer. 7 A Priority Customer is defined in ISE Rule 100(a)(37A) as a person or entity that is not a broker/dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). E:\FR\FM\08SEN1.SGM 08SEN1

Agencies

[Federal Register Volume 75, Number 173 (Wednesday, September 8, 2010)]
[Notices]
[Pages 54681-54682]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-22349]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62794; File No. SR-NSCC-2010-08]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Amend Rules Relating to Authority To Suspend or Waive 
NSCC Rules and Procedures

August 30, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 23, 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.\2\ NSCC filed the proposed rule change 
pursuant to Section 19(b)(3)(A)(iii) and Rule 19b-4(f)(3) thereunder so 
that the proposed rule change was effective upon filing with the 
Commission.\3\ The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested parties.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ The text of the proposed rule change is attached as Exhibit 
5 to NSCC's filing and is available at https://www.dtcc.com/downloands/legal/rule_filings/2010/nscc/2010-08.pdf.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii) and 17 CFR 240.19b-4(f)(3).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change will amend NSCC rules to provide that any 
officer having a rank of Managing Director or higher is authorized to 
suspend or waive NSCC rules and procedures.

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\
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    \4\ The Commission has modified the text of the summaries 
prepared by NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The proposed rule change amends Rule 22 of the NSCC's Rules and 
Procedures \5\ to state that the rules and procedures of NSCC may be 
suspended or waived by any officer having a rank of Managing Director 
or higher. Prior to the proposed amendment, Rule 22 provided such 
authority to officers having a rank of Vice President or higher.\6\ 
This proposed rule change will also harmonize NSCC's rules with those 
of FICC's (``FICC'') Government Securities Division and Mortgage-Backed 
Securities Division, and with those of The Depository Trust Company 
(``DTC'') as such rules relate to the authority to suspend or waive 
rules.\7\
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    \5\ NSCC's rules are available at https://www.dtcc.com/legal/rules_proc/dtc_rules.pdf.
    \6\ Managing Director is a more senior level of officer than 
that of Vice President.
    \7\ On August 20, 2010, FICC filed and on August 23, 2010, DTC 
filed similar rule changes. Securities Exchange Act Release No. 
62796 (August 30, 2010) [SR-FICC-2010-06] and 62795 (August 30, 
2010) [File No. SR-DTC-2010-11] respectively.
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    NSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act\8\ and the rules and regulations 
thereunder that are applicable to NSCC because the proposed rule will 
require a more senior level of management to authorize a suspension or 
waiver of the NSCC rules under the proposed rule change, thereby 
ensuring more equitable compliance with NSCC's rules and procedures.
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    \8\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

(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 the 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 \9\ and Rule 19b-4(f)(3) \10\ 
thereunder because it is concerned solely with the administration of 
NSCC. At any time within sixty days of the filing of such rule change, 
the Commission summarily may temporarily suspend 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(3).
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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-2010-08 on the subject line.

[[Page 54682]]

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-2010-08. 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 website viewing and 
printing 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, https://www.dtcc.com. 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-2010-08 and should be submitted on or before 
September 29, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-22349 Filed 9-7-10; 8:45 am]
BILLING CODE 8010-01-P
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