Self-Regulatory Organizations; National Securities Clearing Corporation; Order Approving Proposed Rule Change Regarding the Creation of a Universal Trade Capture Application and Automated Special Representative Facility, 2737-2738 [2011-666]
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Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices
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:
[FR Doc. 2011–680 Filed 1–13–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–C2–2011–002 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.
mstockstill on DSKH9S0YB1PROD with NOTICES
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[Release No. 34–63668; File No. SR–NSCC–
2010–09]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Order Approving
Proposed Rule Change Regarding the
Creation of a Universal Trade Capture
Application and Automated Special
Representative Facility
January 6, 2011.
I. Introduction
On August 30, 2010, the National
Securities Clearing Corporation
(‘‘NSCC’’) filed proposed rule change
All submissions should refer to File
SR–NSCC–2010–09 with the Securities
Number SR–C2–2011–002. This file
and Exchange Commission
number should be included on the
subject line if e-mail is used. To help the (‘‘Commission’’) pursuant to Section
19(b)(1) of the Securities Exchange Act
Commission process and review your
of 1934 (‘‘Act’’) 1 and Rule 19b–4
comments more efficiently, please use
thereunder.2 On September 9, 2010,
only one method. The Commission will
NSCC filed an amendment to the
post all comments on the Commission’s proposed rule change. The proposed
Internet Web site (https://www.sec.gov/
rule change modifies NSCC’s rules and
rules/sro.shtml). Copies of the
procedures to create a new Universal
submission, all subsequent
Trade Capture (‘‘UTC’’) application and
amendments, all written statements
an automated Special Representative
with respect to the proposed rule
facility. The proposed rule change was
change that are filed with the
published for comment in the Federal
Commission, and all written
Register on September 20, 2010.3 No
communications relating to the
comment letters were received. This
proposed rule change between the
order approves the proposed rule
Commission and any person, other than change.
those that may be withheld from the
II. Description of the Proposal
public in accordance with the
A. Uniform Trade Capture
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
Pursuant to the proposed rule change,
printing in the Commission’s Public
NSCC is replacing its trade capture
Reference Room, 100 F Street, NE.,
applications, such as the Trade
Washington, DC 20549, on official
Comparison and Recording Operation,
business days between the hours of 10
with the new UTC application that is
a.m. and 3 p.m. Copies of the filing also designed to standardize, streamline,
consolidate, and modernize NSCC’s
will be available for inspection and
system for capturing securities
copying at the principal office of the
transaction information for clearance
Exchange. All comments received will
and settlement at NSCC.
be posted without change; the
The UTC application will accept and
Commission does not edit personal
process a common input record from all
identifying information from
securities marketplaces. It will receive
submissions. You should submit only
and report data from members and selfinformation that you wish to make
available publicly. All submissions
10 17 CFR 200.30–3(a)(12).
should refer to File Number SR–C2–
1 15 U.S.C. 78s(b)(1).
2011–002 and should be submitted on
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 62822
or before February 4, 2011.
(Sept. 20, 2010), 75 FR 57318.
VerDate Mar<15>2010
17:03 Jan 13, 2011
Jkt 223001
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Fmt 4703
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2737
regulatory organizations (‘‘SROs’’) in
both real-time and intraday batch
submissions to and. NSCC will convert
the existing input format to the new
UTC input record format, which will
enable the UTC to provide members and
SROs with their trade output in the
format of their choice (new or old). UTC
will also replace all current locked-in
over-the-counter (‘‘OTC’’) and listed
trade capture applications with one
central, real-time validation and
reporting process and will have the
capability to accept, reject, validate,
process, and send contract output to
members in real-time. Members will
only have to support one standardized
input and output format.
B. Correspondent Clearing Service
Prior to this rule change, NSCC’s rules
provided that its Correspondent
Clearing Service could only be used to:
(a) Accommodate a member with
multiple affiliate accounts that wishes
to move a position resulting from an
‘‘original trade’’ in the process of
clearance from one affiliate account to
another or (b) accommodate a member
that relies on its Special Representative
to execute a trade in a market that the
member is precluded due to
membership requirements (e.g.,
membership requirement for access to
markets) or applicable regulation in
order to enable the resulting position to
be moved from the Special
Representative to that member.
Under this rule change, NSCC will
provide that the Correspondent Clearing
Service may be utilized by members to
accommodate a member that relies on
its Special Representative to execute a
trade in any market regardless of
whether that member maintains direct
access to that market to enable the
resulting position to be moved from the
Special Representative to that member.
C. Creation of an Automated Special
Representative Facility
To assist members control and
monitor their Special Representative
and Qualified Special Representative
relationships, NSCC is creating an
automated, online, secure facility by
which members themselves may
establish, monitor, and maintain these
relationships. Both the Special
Representative Member and the
Correspondent Member will have to
submit matching instructions within the
facility in order for the relationship to
be established. Either party will be able
to submit an entry to retire the
relationship.
Members will be reminded, through
formatting within the facility, of their
existing and unchanged obligations
E:\FR\FM\14JAN1.SGM
14JAN1
2738
Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices
mstockstill on DSKH9S0YB1PROD with NOTICES
under NSCC’s rules with respect to
utilizing these services—namely, that by
establishing the relationship within the
facility both members will continue to
be bound by NSCC’s rules, the
Correspondent is bound by the details of
all transactions submitted on their
behalf by the Qualified Special
Representative or Special
Representative, and any errors or
omissions or disputes relating to such
relationships and related transactions
must be resolved directly between the
parties.
The establishment of relationships
through the automated facility will meet
the written notice requirements for such
services as otherwise set forth within
NSCC’s rules and procedures. Members
will no longer be required to submit
signed forms to NSCC for these
processes.
D. Implementation Time Frame
NSCC will implement many of the
changes described above by January 31,
2011.
With respect to UTC changes and to
support the migration period, NSCC will
provide a conversion process to support
those markets that are not yet ready to
submit transaction data in the new
common input format (i.e., NSCC will
accept data in the old format and
convert data into the new UTC format).
The conversion process will enable
NSCC to offer members and SROs the
new output format regardless of whether
the market has converted to the new
standard. UTC will continue to support
all existing interfaces with markets,
members, and SROs with respect to
trade input and output.
To provide maximum flexibility in
allowing firms to migrate to the new
input and output formats according to
their own schedules, NSCC will
continue to support all existing
interfaces with markets, members, SROs
and regulatory agencies for a period of
time after UTC is implemented.
Finally, NSCC will establish a plan for
the retirement of all legacy input and
output formats and by the end of the
first quarter of 2012 will reassess the
status of those firms utilizing legacy
formats. At that time, NSCC will work
with any members, SROs, and
regulatory agencies that have not yet
converted from legacy reporting, thereby
affording such firms sufficient lead time
for migration.
III. Discussion
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to NSCC. In particular, the
VerDate Mar<15>2010
17:03 Jan 13, 2011
Jkt 223001
Commission finds that the proposal is
consistent with Section 17A(b)(3)(F) of
the Act,4 which requires that the rules
of a registered clearing agency are
designed to, among other things, remove
impediments to the perfection of the
mechanism of a national system for the
prompt and accurate clearance and
settlement of securities transactions.
NSCC’s consolidation of its trade
capture and reporting applications are
designed to remediate certain
operational inefficiencies associated
with providing and maintaining
redundant transaction submission and
reporting systems that were created to
service different transaction sources. As
securities marketplaces have ceased
providing clearance and settlement
services for their members and as those
members have ultimately become direct
NSCC members or have entered clearing
arrangements with other NSCC
members, there is little operational basis
for NSCC to continue to service different
data formats and systems. Accordingly,
consolidating its systems to receive and
report transaction details while
providing new automated services to
assist NSCC members maintain their
correspondent and Special
Representative relationships should
help remove certain impediments to the
perfection of the mechanism of a
national system for the prompt and
accurate clearance and settlement of
securities transactions.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular Section 17A of the Act 5 and
the rules and regulations thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,6 that the
proposed rule change (File No. SR–
NSCC–2010–09) be and hereby is
approved.7
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.8
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–666 Filed 1–13–11; 8:45 am]
BILLING CODE 8011–01–P
4 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1.
6 15 U.S.C. 78s(b)(2).
7 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
8 17 CFR 200.30–3(a)(12).
5 15
PO 00000
Frm 00094
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–63669; File No. SR–NYSE–
2011–01]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Exchange Price List
January 6, 2011.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on January
3, 2011, New York Stock Exchange LLC
(‘‘NYSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. 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 Substance of
the Proposed Rule Change
The Exchange proposes to amend its
2011 Price List (‘‘Price List’’) for equity
transactions in stocks with a per share
stock price less than $1.00 to provide
that the equity per share charge for all
other transactions when taking liquidity
from the Exchange per transaction will
be the lesser of (i) 0.3% of the total
dollar value of the transaction and (ii)
$0.0023 per share. The amended pricing
will take effect on January 3, 2011. The
text of the proposed rule change is
available at the Exchange, at https://
www.nyse.com, at the Commission’s
Public Reference Room, and on the
Commission’s Web site at https://
www.sec.gov.
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
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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
E:\FR\FM\14JAN1.SGM
14JAN1
]]>Agencies
[Federal Register Volume 76, Number 10 (Friday, January 14, 2011)]
[Notices]
[Pages 2737-2738]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-666]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63668; File No. SR-NSCC-2010-09]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Order Approving Proposed Rule Change Regarding the
Creation of a Universal Trade Capture Application and Automated Special
Representative Facility
January 6, 2011.
I. Introduction
On August 30, 2010, the National Securities Clearing Corporation
(``NSCC'') filed proposed rule change SR-NSCC-2010-09 with the
Securities and Exchange Commission (``Commission'') pursuant to Section
19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule
19b-4 thereunder.\2\ On September 9, 2010, NSCC filed an amendment to
the proposed rule change. The proposed rule change modifies NSCC's
rules and procedures to create a new Universal Trade Capture (``UTC'')
application and an automated Special Representative facility. The
proposed rule change was published for comment in the Federal Register
on September 20, 2010.\3\ No comment letters were received. This order
approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 62822 (Sept. 20, 2010),
75 FR 57318.
---------------------------------------------------------------------------
II. Description of the Proposal
A. Uniform Trade Capture
Pursuant to the proposed rule change, NSCC is replacing its trade
capture applications, such as the Trade Comparison and Recording
Operation, with the new UTC application that is designed to
standardize, streamline, consolidate, and modernize NSCC's system for
capturing securities transaction information for clearance and
settlement at NSCC.
The UTC application will accept and process a common input record
from all securities marketplaces. It will receive and report data from
members and self-regulatory organizations (``SROs'') in both real-time
and intraday batch submissions to and. NSCC will convert the existing
input format to the new UTC input record format, which will enable the
UTC to provide members and SROs with their trade output in the format
of their choice (new or old). UTC will also replace all current locked-
in over-the-counter (``OTC'') and listed trade capture applications
with one central, real-time validation and reporting process and will
have the capability to accept, reject, validate, process, and send
contract output to members in real-time. Members will only have to
support one standardized input and output format.
B. Correspondent Clearing Service
Prior to this rule change, NSCC's rules provided that its
Correspondent Clearing Service could only be used to: (a) Accommodate a
member with multiple affiliate accounts that wishes to move a position
resulting from an ``original trade'' in the process of clearance from
one affiliate account to another or (b) accommodate a member that
relies on its Special Representative to execute a trade in a market
that the member is precluded due to membership requirements (e.g.,
membership requirement for access to markets) or applicable regulation
in order to enable the resulting position to be moved from the Special
Representative to that member.
Under this rule change, NSCC will provide that the Correspondent
Clearing Service may be utilized by members to accommodate a member
that relies on its Special Representative to execute a trade in any
market regardless of whether that member maintains direct access to
that market to enable the resulting position to be moved from the
Special Representative to that member.
C. Creation of an Automated Special Representative Facility
To assist members control and monitor their Special Representative
and Qualified Special Representative relationships, NSCC is creating an
automated, online, secure facility by which members themselves may
establish, monitor, and maintain these relationships. Both the Special
Representative Member and the Correspondent Member will have to submit
matching instructions within the facility in order for the relationship
to be established. Either party will be able to submit an entry to
retire the relationship.
Members will be reminded, through formatting within the facility,
of their existing and unchanged obligations
[[Page 2738]]
under NSCC's rules with respect to utilizing these services--namely,
that by establishing the relationship within the facility both members
will continue to be bound by NSCC's rules, the Correspondent is bound
by the details of all transactions submitted on their behalf by the
Qualified Special Representative or Special Representative, and any
errors or omissions or disputes relating to such relationships and
related transactions must be resolved directly between the parties.
The establishment of relationships through the automated facility
will meet the written notice requirements for such services as
otherwise set forth within NSCC's rules and procedures. Members will no
longer be required to submit signed forms to NSCC for these processes.
D. Implementation Time Frame
NSCC will implement many of the changes described above by January
31, 2011.
With respect to UTC changes and to support the migration period,
NSCC will provide a conversion process to support those markets that
are not yet ready to submit transaction data in the new common input
format (i.e., NSCC will accept data in the old format and convert data
into the new UTC format). The conversion process will enable NSCC to
offer members and SROs the new output format regardless of whether the
market has converted to the new standard. UTC will continue to support
all existing interfaces with markets, members, and SROs with respect to
trade input and output.
To provide maximum flexibility in allowing firms to migrate to the
new input and output formats according to their own schedules, NSCC
will continue to support all existing interfaces with markets, members,
SROs and regulatory agencies for a period of time after UTC is
implemented.
Finally, NSCC will establish a plan for the retirement of all
legacy input and output formats and by the end of the first quarter of
2012 will reassess the status of those firms utilizing legacy formats.
At that time, NSCC will work with any members, SROs, and regulatory
agencies that have not yet converted from legacy reporting, thereby
affording such firms sufficient lead time for migration.
III. Discussion
The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to NSCC. In particular, the Commission finds that
the proposal is consistent with Section 17A(b)(3)(F) of the Act,\4\
which requires that the rules of a registered clearing agency are
designed to, among other things, remove impediments to the perfection
of the mechanism of a national system for the prompt and accurate
clearance and settlement of securities transactions. NSCC's
consolidation of its trade capture and reporting applications are
designed to remediate certain operational inefficiencies associated
with providing and maintaining redundant transaction submission and
reporting systems that were created to service different transaction
sources. As securities marketplaces have ceased providing clearance and
settlement services for their members and as those members have
ultimately become direct NSCC members or have entered clearing
arrangements with other NSCC members, there is little operational basis
for NSCC to continue to service different data formats and systems.
Accordingly, consolidating its systems to receive and report
transaction details while providing new automated services to assist
NSCC members maintain their correspondent and Special Representative
relationships should help remove certain impediments to the perfection
of the mechanism of a national system for the prompt and accurate
clearance and settlement of securities transactions.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular Section 17A of the Act \5\ and the rules and regulations
thereunder.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\6\ that the proposed rule change (File No. SR-NSCC-2010-09) be and
hereby is approved.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(2).
\7\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------
\8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-666 Filed 1-13-11; 8:45 am]
BILLING CODE 8011-01-P
