Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Advance Notice To Eliminate the Offset of Its Obligations With Institutional Delivery Transactions That Settle at The Depository Trust Company for the Purpose of Calculating Its Clearing Fund Under Procedure XV of Its Rules & Procedures, 3960-3964 [2013-00772]
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prescribes a method of notification, it
says that companies must follow the
timely disclosure/telephone alert
procedures found in Sections 202.05
and 202.06(B).10 Later in Section
311.01, there is a second notification
directive that requires companies to
notify the Exchange of redemptions in
writing, delivered by hand if possible,
and if immediate hand delivery is not
possible, than the company must notify
the Exchange of a redemption action by
telephone, no later than simultaneously
with the release of the information to
the newspapers and news wire services,
confirmed promptly by fax. The
Exchange proposes to delete the
paragraph containing the second
directive. As a result of the proposed
change, the only notification directive
in Section 311.01 would be the first one
that requires companies to follow the
timely disclosure and telephone alert
procedures.
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III. Discussion and Commission
Findings
The Commission has carefully
reviewed the proposed rule change and
finds that it consistent with the
requirements of the Act.11 Specifically,
the Commission believes it is consistent
with Section 6(b)(5) of the Act,12 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
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
remove impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest.
The proposed changes are intended to
simplify and clarify the provisions of
the Manual relating to the methods by
which listed companies must notify the
Exchange when certain events occur. By
creating a uniform method of
notification by web portal or email for
the Sections that specifically refer to
Section 204.00, identified in the chart
above, the Exchange may reduce the
likelihood that companies make a
mistake when trying to notify the
Exchange of important events. As
10 The Exchange proposed several additional
technical and non-substantive changes to Section
311.01. See Notice, supra note 3.
11 15 U.S.C. 78f. In approving this proposed rule
change, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
12 15 U.S.C. 78f(b)(5).
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explained by the Exchange, the Sections
that will require notice by web portal or
email pursuant to Section 204.00 all
relate to matters where timely
notification is critical to allow investors
time to make arrangements to be holders
of a security by a certain date for a
distribution or shareholder meeting. In
such cases, it makes sense to require
listed companies to give notice to the
Exchange using current, efficient
electronic methods that more easily
lend themselves to accurate
recordkeeping than manual or written
methods.13 The Commission therefore
believes that the proposed rule change
is consistent with the Act, as more clear,
easy to follow, and easily recorded
notification methods should facilitate
the transmission of information and
promote transparency for the benefit of
investors consistent with Section 6(b)(5)
of the Act.14
Likewise, with respect to the
remaining notification provisions in the
Manual where timely notification is less
critical, it is reasonable to allow
companies more flexibility to determine
what method of notification best suits a
particular situation. The Commission
notes that, even in such cases, the
Exchange is offering to allow companies
to use the electronic web-based
notification methods of 204.00 if they
would like to use such methods.
The Commission also finds that the
remaining clarifying, conforming,
administrative, and technical changes
are consistent with the Act. The changes
to the Guide make it consistent with
language used elsewhere in the Guide
and Manual. For instance, the revision
of the Item in the Guide dealing with
press releases conforms the language
used in that Guide entry with the
corresponding language in Section
202.06(B). The same is true of the
change to the Due Date description
associated with Shareholders’ Meeting/
Notice of Record Date or Change of
Record Date, which is meant to mirror
language used in the Due Date
description of the Guide entry
associated with Dividend Notification.
Because these changes conform the
13 The
Commission also notes that the Exchange
provides for alternative methods of notification
should electronic communications systems be
unavailable. See supra note 7 and accompanying
text.
14 The Commission notes that the Exchange has
committed in its rule text to displaying prominently
on its Web site the specific electronic web-based
communication system that listed companies must
use to give notice in accordance with Section
204.00. Accordingly, the Commission believes that
the proposed rule change should facilitate listed
companies’ means of providing notice of certain
events while ensuring that all listed companies
should be able to determine how they must comply
with such notification requirements.
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Guide’s language to what is used
elsewhere in the Manual, they promote
consistency and transparency and
reduce the potential for confusion.
Similarly, in Section 311.01, the
Exchange’s deletion of a second,
potentially conflicting method of
notification of redemption actions
should reduce listed companies’
confusion as to how to comply with the
provision, and ultimately, this should
promote transparency and protect
investors by ensuring better and more
accurate notification. Lastly, the change
to Section 402.01 that reduces the
number of copies of proxy material that
listed companies must provide to the
Exchange lessens the administrative
burden imposed on issuers without, as
the Exchange represents, threatening the
Exchange’s review of such material for
the benefit and protection of investors.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,15 that the
proposed rules change (SR–NYSE–
2012–54) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–00876 Filed 1–16–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68621; File No. SR–NSCC–
2012–810]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing of
Advance Notice To Eliminate the Offset
of Its Obligations With Institutional
Delivery Transactions That Settle at
The Depository Trust Company for the
Purpose of Calculating Its Clearing
Fund Under Procedure XV of Its Rules
& Procedures
January 10, 2013.
Pursuant to Section 806(e)(1) of the
Payment, Clearing, and Settlement
Supervision Act of 2010 (‘‘Clearing
Supervision Act’’) 1 and Rule 19b–
4(n)(1)(i) 2 thereunder, notice is hereby
given that on December 18, 2012, the
National Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
15 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12); 17 CFR 200.30–
3(a)(83).
1 12 U.S.C. 5465(e)(1).
2 17 CFR 240.19b–4(n)(i).
16 17
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the advance notice 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 advance notice
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Advance
Notice
NSCC proposes to modify its Rules &
Procedures (‘‘Rules’’) to eliminate the
offset of NSCC obligations with
institutional delivery (‘‘ID’’) transactions
that settle at the Depository Trust
Company (‘‘DTC’’) for the purpose of
calculating the NSCC clearing fund
(‘‘Clearing Fund’’) under Procedure XV
of the Rules.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Advance Notice
In its filing with the Commission,
NSCC included statements concerning
the purpose of and basis for the advance
notice and discussed any comments it
received on the advance notice. 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) and (B) below, of the
most significant aspects of these
statements.3
(A) Advance Notices Filed Pursuant to
Section 806(e) of the Payment, Clearing
and Settlement Supervision Act
Description of Change
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Background
A primary objective of NSCC’s
Clearing Fund is to have on deposit
from each applicable clearing member
(‘‘Member’’) assets sufficient to satisfy
losses that may otherwise be incurred
by NSCC as the result of the default of
the Member and the resultant close out
of that Member’s unsettled positions
under NSCC’s trade guaranty. Each
Member’s Clearing Fund required
deposit is calculated daily pursuant to
a formula set forth in Procedure XV of
the Rules designed to provide sufficient
funds to cover this risk of loss. The
Clearing Fund formula accounts for a
variety of risk factors through the
application of a number of components,
each described in Procedure XV.4
3 The Commission has modified the text of the
summaries prepared by NSCC.
4 In addition to those described in this filing,
Clearing Fund components also include (i) A markto-market component which, with certain
exclusions, takes into account any difference
between the contract price and market price for net
positions of each security in a Member’s portfolio
through settlement; (ii) a ‘‘special charge’’ in view
of price fluctuations in or volatility or lack of
liquidity of any security; (iii) an additional charge
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The Value-at-Risk component, or
‘‘VaR,’’ is a core component of this
formula and is designed to calculate the
amount of money that may be lost on a
portfolio over a given period of time
assumed necessary to liquidate the
portfolio, within a given level of
confidence.5 The Market Maker
Domination component, or ‘‘MMDOM,’’
is charged to Market Makers,6 or firms
that clear for them. In calculating the
MMDOM, if the sum of the absolute
values of net unsettled positions in a
security for which the firm in question
makes a market is greater than that
firm’s excess net capital, NSCC may
then charge the firm an amount equal to
such excess or the sum of each of the
absolute values of the affected net
unsettled positions, or a combination of
both. MMDOM operates to identify
concentration within a given CUSIP.
Pursuant to Procedure XV of the
Rules, NSCC may calculate the VaR and
MMDOM components of a Member’s
Clearing Fund requirement after taking
into account any offsetting pending (i.e.,
non-fail) ID transactions that have been
confirmed and/or affirmed through an
institutional delivery system acceptable
to NSCC (typically Omgeo LLC
(‘‘Omgeo’’), a joint venture of the
Depository Trust and Clearing
Corporation and Thomson Reuters) (‘‘ID
Offset’’).7 NSCC is proposing to
eliminate the ID Offset from its Clearing
Fund calculations in order to eliminate
the market risk that, in the event NSCC
relating to a Member’s outstanding fail positions;
(iv) a ‘‘specified activity charge’’ for transactions
scheduled to settle on a shortened settlement cycle
(i.e., less than T+3 or T+3 for ‘‘as-of’’ transactions);
(v) an additional charge that NSCC may require of
Members on surveillance status; and (vi) an ‘‘Excess
Capital Premium’’ that takes into account the degree
to which a Member’s collateral requirement
compares to the Member’s excess net capital by
applying a charge if a Member’s Required Deposit,
minus any amount applied from the charges
described in (ii) and (iii) above, is above its required
capital.
5 NSCC’s equity VaR model assumes a 99%
confidence interval, uses a 150-day historical lookback period, and assumes a three-day liquidation
period. In effect, NSCC assumes the market
conditions observed over the past 150 days are
predictive of the market conditions expected over
the course of the next three business days. Pursuant
to Procedure XV, NSCC may exclude from the VaR
charge ‘‘Net Unsettled Positions in classes of
securities whose volatility is (x) less amendable to
statistical analysis, such as OTC Bulletin Board or
Pink Sheet issues or issues trading below a
designated dollar threshold, or (y) amendable to
generally accepted statistical analysis in a complex
manner, such as municipal or corporate bonds.’’
The charge for such positions is determined by
multiplying the absolute value of the positions by
a pre-determined percentage.
6 As used in Procedure XV, the term Market
Maker means a firm that is registered by FINRA as
a Market Maker.
7 The changes proposed by this advance notice
will not impact NSCC’s ID Net Service.
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3961
ceases to act for a Member with pending
ID transactions, it may be unable to
complete those pending ID transactions
in the time frame contemplated by its
current Clearing Fund calculations and,
as a result, may have insufficient margin
in its Clearing Fund.
ID Transactions
The parties involved in an
institutional trade include the
institutional investor (such as mutual
funds, insurance companies, hedge
funds, bank trust departments, and
pension funds), the investment manager
(who enters trade orders on behalf of
institutional investors), the buying
broker and the selling broker, and
custodian banks.8 Trades between the
buying broker and the selling broker are
typically settled through NSCC’s
Continuous Net Settlement system
(‘‘CNS’’).9
Before ID trades are sent to DTC,
where they settle delivery versus
payment, the trade allocation details are
matched between the executing broker
and the institutional investor. After an
executing broker has provided a final
notice of execution associated with the
client’s order, most institutional clients
will provide trade allocation details to
the executing broker using a service
provided by Omgeo. When the
executing broker accepts and processes
the trade allocations, an electronic
confirmation is provided through
Omgeo’s TradeSuite service to the
institutional investor or its agent
(typically the institutional client’s
custodian bank) for affirmation. Omgeo
links with the various parties to
institutional trades to provide real-time
central matching capabilities,
electronically comparing trade details
and notifying parties of any exceptions.
After the trade allocation details are
affirmed, the trade is considered
matched and institutional delivery
details are sent to DTC for settlement.
Completion of the money and
securities settlement of institutional
trades occurs at DTC. Because
8 Prime broker ID transactions settling at NSCC
are not included in the ID Offset, as they are
included in the Member’s NSCC activity once such
transactions are affirmed, and, therefore, are not
addressed in this filing. The ID transactions
included in the ID Offset and described in this
advance notice are activity that is held in custody
at a bank.
9 CNS is NSCC’s core netting and allotting system,
where all eligible compared and recorded
transactions for a particular settlement date are
netted by issue into one net long (buy) or net short
(sell) position, and NSCC becomes the contra-party
for settlement purposes, assuming the obligation of
its Members that are receiving securities to receive
and pay for those securities, and the obligation of
Members that are delivering securities to make the
delivery.
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investment managers are not
participants of and do not have direct
accounts at DTC, their securities are
held in custodial accounts with banks
who are participants at DTC. Therefore,
when the institutional delivery details
for confirmed and affirmed ID trades are
sent to DTC from Omgeo, the delivering
investment manager’s custodian bank or
broker, as the case may be, must
authorize the delivery, generating a
deliver order that will settle in
accordance with DTC’s rules.
NSCC Risk Management receives a
daily feed from Omgeo, including both
ID trades that have only been confirmed
as well as those that have also been
affirmed. For purposes of the ID Offset,
NSCC includes ID trades that are
confirmed and/or affirmed on trade date
(T) and those ID trades which have been
affirmed on T+1 and remain affirmed
through settlement date (SD).
ID Offset
Procedure XV currently allows for a
Member’s net unsettled NSCC position
in a particular CUSIP to be compared to
any pending ID transactions settling at
DTC for potential offset for purposes of
calculating the VaR and the MMDOM
components of a Member’s Clearing
Fund requirement, defined as the ID
Offset. The ID Offset is based on the
assumption that, in the event of a
Member insolvency, NSCC will be able
to close out any trades for which there
is a corresponding ID transaction
settling at DTC by completing that ID
transaction. Therefore, the VaR and the
MMDOM components are calculated
after taking into account any offsetting
pending (i.e., non-fail) ID transactions
that have been confirmed and/or
affirmed, reducing the Clearing Fund
requirement for those Members with ID
transactions. ID transactions are
included in the ID Offset only if they are
on the opposite side of the market from
the Member’s net NSCC position (i.e.,
only if they reduce that net position).
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Potential Inability To Complete ID
Transactions
Generally, when NSCC ceases to act
for a Member, it is obligated, for those
transactions to which the trade guaranty
has attached, to pay for deliveries made
by non-defaulting Members that are due,
through CNS, to the failed Member on
the day of insolvency and the days
following. As described above, the
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current calculation of the VaR and
MMDOM components of NSCC’s
Clearing Fund are based on the
assumption that, in the event of a
Member default, NSCC will be able to
complete the pending ID transactions
that were used to offset that Member’s
unsettled NSCC position. If NSCC is
unable to complete the ID transactions
as contemplated by this calculation,
then NSCC may need to liquidate a
portfolio that could be substantially
different than the portfolio that NSCC
collected Clearing Fund for, leaving
NSCC potentially under collateralized
and exposed to market risk, because
when it calculated the Clearing Fund
requirement, NSCC assumed, under its
current rules, a portfolio that included
Member positions to be offset by ID
transactions.
There are a number of reasons why
NSCC may not be able to complete an
insolvent Member’s open ID
transactions. First, NSCC does not
guarantee ID transactions and
completion of these transactions by the
counterparty of the ID transaction,
which is not a Member of NSCC, is
voluntary. Further, the institutional
customer is not a Member of NSCC, is
not bound by NSCC’s Rules, and is not
party to any legally binding contract
with NSCC that requires the
institutional customer or its custodian
to complete the transaction. Finally,
based on news that a Member may be
in distress or insolvent, the institutional
customer or its investment advisor may
feel compelled to take immediate
market action with respect to the
institutional buy or sell transaction, in
order to reduce its market risk; this
effectively eliminates the option for
NSCC to complete these transactions,
either entirely or on the timetable
assumed by the Clearing Fund
calculation.
While NSCC’s Risk Management
systems net ID transactions by CUSIP
across all settlement days for the
purposes of the ID Offset, ID
transactions settle trade by trade
between the executing broker and the
custodian. As a result, the netted ID
position used to offset the NSCC
position could potentially be comprised
of thousands of individual trades with
hundreds of different counterparties. It
would be time consuming for NSCC to
contact each counterparty individually
to get their agreement to complete ID
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transactions, which would delay the
determination of the portfolio requiring
liquidation in the event of a cease to act,
and thus hold up the prompt close out
of the defaulter’s open positions,
exposing NSCC to additional market
risk not covered by the margin
collected.
Implementation Time Frame
Following Commission approval, in
order to mitigate the impact of this
advance notice, NSCC proposes to
implement the changes set forth in this
filing on over an 18-month period. On
a date no earlier than 10 days following
notice to Members by Important Notice
(‘‘Initial Implementation Date’’), NSCC
proposes to eliminate the ID Offset from
ID transactions that have only been
confirmed, but have not yet been
affirmed. At this time, NSCC will
continue to apply the ID Offset to ID
transactions that have been affirmed.
During the 12-month period following
the Initial Implementation Date, NSCC
will discuss with Members, whose
business will be affected by the
elimination of the ID Offset,
mechanisms to mitigate this impact.
Beginning on a date approximately 12
months from the Initial Implementation
Date, and no earlier than 10 days
following notice to Members by
Important Notice, NSCC will eliminate
from the ID Offset all affirmed ID
transactions that have reached
settlement date at the time the Clearing
Fund calculations are run. Three
months later, or approximately 15
months following the Initial
Implementation Date, and on a date no
earlier than 10 days following notice to
Members by Important Notice, NSCC
will eliminate from the ID Offset all
affirmed ID transactions that have
reached either settlement date or the
day prior to settlement date. Finally, on
a date approximately 18 months
following the Initial Implementation
Date, and no earlier than 10 days
following notice to Members by
Important Notice, NSCC will eliminate
the ID Offset entirely for all ID
transactions. Members will be advised
of each proposed implementation date
through issuance of NSCC Important
Notices, which are publically available
at www.dtcc.com.
The table below illustrates this
proposed implementation schedule:
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3963
PROPOSED IMPLEMENTATION SCHEDULE FOR ELIMINATION OF ID OFFSETS
Action
Scheduled implementation
Eliminate from ID Offset those ID transactions that have only been confirmed, but have not yet been affirmed.
Following approval of rule filing, and on a date no earlier than 10 days
following notice to Members by Important Notice (‘‘Initial Implementation Date’’).
12 months following the Initial Implementation Date, and on a date no
earlier than 10 days following notice to Members by Important Notice.
15 months following the Initial Implementation Date, and on a date no
earlier than 10 days following notice to Members by Important Notice.
18 months following the Initial Implementation Date, and on a date no
earlier than 10 days following notice to Members by Important Notice.
Eliminate from ID Offset all affirmed ID transactions that have reached
Settlement Date (‘‘SD’’).
Eliminate from ID Offset all affirmed ID transactions that have reached
SD and the day prior to SD (SD–1).
Eliminate from ID Offset all ID transactions .............................................
Proposed Rule Changes
NSCC proposes to amend Procedure
XV to eliminate the ID Offset from
calculation of the VaR and MMDOM
components of a Member’s Clearing
Fund requirement as currently provided
for in, with respect to CNS transactions,
Section I(A)(1)(a)(i) and Section
I(A)(1)(d), and, with respect to Balance
Order transactions, Section I(A)(2)(a)(i)
and Section I(A)(2)(c).
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Anticipated Effect on and Management
of Risk
As a central counterparty, NSCC
occupies an important role in the
securities settlement system by
interposing itself between
counterparties to financial transactions
and thereby reducing the risk faced by
participants and contributing to global
financial stability. In this role, however,
NSCC is necessarily subject to certain
risks in the event of the default or
failure of a Member.
NSCC reviews its risk management
processes against federal securities laws
and rulemaking promulgated by the
Commission, and applicable regulatory
and industry guidelines, including but
not limited to the Principles for
Financial Market Infrastructures
(‘‘PFMI’’) of the Committee on Payment
and Settlement Systems and the
Technical Committee of the
International Organization of Securities
Commissions (‘‘CPSS–IOSCO’’).10 In
accordance with Commission rules,11
specifically Rule 17Ad–22(b)(1)
addressing measurement and
management of credit exposures, Rule
17Ad–22(b)(2) addressing margin
requirements, and Rule 17Ad–22(d)(11)
addressing default procedures, and also
in accordance with the PFMIs, this
10 CPSS–IOSCO PFMI (April 2012), available at
https://www.bis.org/publ/cpss101a.pdf.
11 Securities and Exchange Commission Release
No. 34–68080 (October 22, 2012), 77 FR 66219
(November 2, 1012; File No. S7–08–11 (available at
https://www.sec.gov/rules/final/2012/34-68080.pdf),
effective on January 2, 2013.
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advance notice should enhance NSCC’s
ability to more effectively manage its
credit exposures to participants, help
ensure that it is able to cover its credit
exposures to its participants for all
products through an effective, riskbased margin system, limit NSCC’s
exposures and losses, and enhance
protections against market risk that may
arise when NSCC ceases to act for a
Member with open ID transaction
activity.
(B) Clearing Agency’s Statement on
Comments on the Advance Notice
Received From Members, Participants,
or Others
While written comments relating to
the advance notice have not yet been
solicited, NSCC has received a letter on
behalf of certain Members seeking
further review of the impact of the
proposed changes contained in the
advance notice and consideration of
alternatives. NSCC notified the
Commission of the contents of the letter
and promptly delivered a response to
those Members addressing their
concerns. A Member working group has
been established to discuss mechanisms
for impacted Members to mitigate the
potential impact of the rule changes
described in this filing.
III. Date of Effectiveness of the Advance
Notice and Timing for Commission
Action
The clearing agency may implement
the proposed change pursuant to
Section 806(e)(1)(G) of the Clearing
Supervision Act 12 if it has not received
an objection to the proposed change
within 60 days of the later of (i) the date
that the Commission received the
advance notice or (ii) the date the
Commission receives any further
information it requested for
consideration of the notice. The clearing
agency shall not implement the
12 12
PO 00000
U.S.C. 5465(e)(1)(G).
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proposed change if the Commission has
any objection to the proposed change.
The Commission may extend the
period for review by an additional 60
days if the proposed change raises novel
or complex issues, subject to the
Commission providing the clearing
agency with prompt written notice of
the extension. A proposed change may
be implemented in less than 60 days
from the date of receipt of the advance
notice, or the date the Commission
receives any further information it
requested, if the Commission notifies
the clearing agency in writing that it
does not object to the proposed change
and authorizes the clearing agency to
implement the proposed change on an
earlier date, subject to any conditions
imposed by the Commission. The
clearing agency shall post notice on its
Web site of proposed changes that are
implemented.
The proposal shall not take effect
until all regulatory actions required
with respect to the proposal are
completed.13
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the advance notice is
consistent with the Clearing
Supervision Act. Comments may be
submitted by any of the following
methods:
13 NSCC also filed the proposals contained in this
advance notice as a proposed rule change under
Section 19(b)(1) of the Act and Rule 19b–4
thereunder. 15 U.S.C. 78s(b)(1); 17 CFR 240.19b–4.
Pursuant to Section 19(b)(2) of the Act, within 45
days of the date of publication of the proposed rule
change in the Federal Register or within such longer
period up to 90 days if the Commission designates
or the self-regulatory organization consents the
Commission will either: (i) By order approve or
disapprove the proposed rule change or (ii) institute
proceedings to determine whether the proposed
rule change should be disapproved. 17 U.S.C.
78s(b)(2)(A). See Release No. 34–68549 (December
28, 2012), 78 FR 792 (January 4, 2013).
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Electronic Comments
DEPARTMENT OF TRANSPORTATION
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NSCC–2012–810 on the
subject line.
Federal Aviation Administration
Paper Comments
pmangrum on DSK3VPTVN1PROD with
All submissions should refer to File
Number SR–NSCC–2012–810. This file
number should be included on the
subject line if email 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 advance notice that
are filed with the Commission, and all
written communications relating to the
advance notice 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
10:00 a.m. and 3:00 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://dtcc.com/downloads/legal/
rule_filings/2012/nscc/SR-NSCC-201210.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–2012–810 and
should be submitted on or before
February 7, 2013.
By the Commission.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–00772 Filed 1–16–13; 8:45 am]
BILLING CODE 8011–01–P
14:19 Jan 16, 2013
Federal Aviation
Administration (FAA), DOT.
ACTION: Request for public comment.
AGENCY:
The Federal Aviation
Administration is requesting public
comment on the proposed release of
154.0957 acres of land currently owned
by the Raleigh County Commission,
Sponsor for the Raleigh County
Memorial Airport, Beckley, West
Virginia. The parcel is located off the
north end of the airport and descends in
to ‘‘Piney Creek Gorge’’ to a depth in
excess of 600ft below the airport
elevation and has no aeronautical
benefit. The land is dormant, no
infrastructure exists and land has no
practical use. Due to terrain, no future
development opportunities exist for the
airport. Once released, the land will be
sold and placed in a Conservation
Easement, with restriction of no future
development. Proposed buyer would be
placing the area of request in a
conservation easement for wildlife
enhancement, with no adverse impact to
the airport. Land will remain as
compatible use to the airport. Land will
be sold as surface rights only, no
conveyance of mineral rights. The
airport land being released is not
needed for airport development as
shown on the Airport Layout Plan. Fair
Market Value has been determined
based upon an appraisal of the Property.
DATES: Comments must be received on
or before February 19, 2013.
ADDRESSES: Comments on this
application may be mailed or delivered
in triplicate to the FAA at the following
address: Connie Boley-Lilly, Program
Specialist, Federal Aviation
Administration, Beckley Airports Field
Office, 176 Airport Circle, Room 101,
Beaver, West Virginia 25813.
In addition, one copy of any
comments submitted to the FAA must
be mailed or delivered to Mr. Tom
Cochran, Airport Manager of the Raleigh
County Memorial Airport at the
following address: Thomas Cochran,
Airport Manager, Raleigh County
Memorial Airport, 176 Airport Circle,
Room 105, Beaver, West Virginia 25813.
FOR FURTHER INFORMATION CONTACT:
Connie Boley-Lilly, Program Specialist,
Beckley Airport Field Office, (304) 252–
6216 ext. 125, Fax (304) 253–8028.
Email: Connie.Boley-Lilly@FAA.GOV.
SUPPLEMENTARY INFORMATION: The FAA
proposes to rule and invites public
SUMMARY:
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
VerDate Mar<15>2010
Request for Public Comment, Raleigh
County Memorial Airport, Beckley, WV
Jkt 229001
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
comment on the request to release
property at the Raleigh County
Memorial Airport, Beckley, WV. Under
the provisions of AIR 21(49 U.S.C.
47108(h)(2)).
The Raleigh County Memorial Airport
is proposing the release of
approximately 154.0957 acres of a
‘surface rights only’ property to be sold
and then placed in a Conservation
Easement with restriction of no future
development. The release and sale of
this property will allow the Sponsor to
take advantage of un-useable land and
use the proceeds for that sale, for the
future development of the airport.
Issued in Beckley, West Virginia, on
January 8, 2013.
Matthew P. DiGiulian,
Manager, Beckley Airport Field Office,
Eastern Region.
[FR Doc. 2013–00854 Filed 1–16–13; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA–2013–0001]
Establishment of an Emergency Relief
Docket for Calendar Year 2013
Federal Railroad
Administration (FRA), DOT.
ACTION: Notice of establishment of
public docket.
AGENCY:
This Notice announces the
establishment of FRA’s emergency relief
docket (ERD) for calendar year 2013.
The designated ERD for calendar year
2013 is docket number FRA–2013–0001.
ADDRESSES: See SUPPLEMENTARY
INFORMATION section for further
information regarding submitting
petitions and/or comments to Docket
No. FRA–2013–0001.
SUPPLEMENTARY INFORMATION: On May
19, 2009, FRA published a direct final
rule addressing the establishment of
ERDs and the procedures for handling
petitions for emergency waivers of
safety rules, regulations, or standards
during an emergency situation or event.
74 FR 23329. That direct final rule
became effective on July 20, 2009 and
made minor modifications to § 211.45 to
the FRA’s Rules of Practice published at
49 CFR part 211. Paragraph (b) of
§ 211.45 provides that each calendar
year FRA will establish an ERD in the
publicly accessible DOT docket system
(available on the Internet at https://
www.regulations.gov). Paragraph (b) of
§ 211.45 further provides that FRA will
publish a notice in the Federal Register
identifying by docket number the ERD
SUMMARY:
E:\FR\FM\17JAN1.SGM
17JAN1
]]>Agencies
[Federal Register Volume 78, Number 12 (Thursday, January 17, 2013)]
[Notices]
[Pages 3960-3964]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00772]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68621; File No. SR-NSCC-2012-810]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Advance Notice To Eliminate the Offset
of Its Obligations With Institutional Delivery Transactions That Settle
at The Depository Trust Company for the Purpose of Calculating Its
Clearing Fund Under Procedure XV of Its Rules & Procedures
January 10, 2013.
Pursuant to Section 806(e)(1) of the Payment, Clearing, and
Settlement Supervision Act of 2010 (``Clearing Supervision Act'') \1\
and Rule 19b-4(n)(1)(i) \2\ thereunder, notice is hereby given that on
December 18, 2012, the National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'')
[[Page 3961]]
the advance notice 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 advance notice from interested
persons.
---------------------------------------------------------------------------
\1\ 12 U.S.C. 5465(e)(1).
\2\ 17 CFR 240.19b-4(n)(i).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice
NSCC proposes to modify its Rules & Procedures (``Rules'') to
eliminate the offset of NSCC obligations with institutional delivery
(``ID'') transactions that settle at the Depository Trust Company
(``DTC'') for the purpose of calculating the NSCC clearing fund
(``Clearing Fund'') under Procedure XV of the Rules.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice
In its filing with the Commission, NSCC included statements
concerning the purpose of and basis for the advance notice and
discussed any comments it received on the advance notice. 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) and (B)
below, of the most significant aspects of these statements.\3\
---------------------------------------------------------------------------
\3\ The Commission has modified the text of the summaries
prepared by NSCC.
---------------------------------------------------------------------------
(A) Advance Notices Filed Pursuant to Section 806(e) of the Payment,
Clearing and Settlement Supervision Act
Description of Change
Background
A primary objective of NSCC's Clearing Fund is to have on deposit
from each applicable clearing member (``Member'') assets sufficient to
satisfy losses that may otherwise be incurred by NSCC as the result of
the default of the Member and the resultant close out of that Member's
unsettled positions under NSCC's trade guaranty. Each Member's Clearing
Fund required deposit is calculated daily pursuant to a formula set
forth in Procedure XV of the Rules designed to provide sufficient funds
to cover this risk of loss. The Clearing Fund formula accounts for a
variety of risk factors through the application of a number of
components, each described in Procedure XV.\4\
---------------------------------------------------------------------------
\4\ In addition to those described in this filing, Clearing Fund
components also include (i) A mark-to-market component which, with
certain exclusions, takes into account any difference between the
contract price and market price for net positions of each security
in a Member's portfolio through settlement; (ii) a ``special
charge'' in view of price fluctuations in or volatility or lack of
liquidity of any security; (iii) an additional charge relating to a
Member's outstanding fail positions; (iv) a ``specified activity
charge'' for transactions scheduled to settle on a shortened
settlement cycle (i.e., less than T+3 or T+3 for ``as-of''
transactions); (v) an additional charge that NSCC may require of
Members on surveillance status; and (vi) an ``Excess Capital
Premium'' that takes into account the degree to which a Member's
collateral requirement compares to the Member's excess net capital
by applying a charge if a Member's Required Deposit, minus any
amount applied from the charges described in (ii) and (iii) above,
is above its required capital.
---------------------------------------------------------------------------
The Value-at-Risk component, or ``VaR,'' is a core component of
this formula and is designed to calculate the amount of money that may
be lost on a portfolio over a given period of time assumed necessary to
liquidate the portfolio, within a given level of confidence.\5\ The
Market Maker Domination component, or ``MMDOM,'' is charged to Market
Makers,\6\ or firms that clear for them. In calculating the MMDOM, if
the sum of the absolute values of net unsettled positions in a security
for which the firm in question makes a market is greater than that
firm's excess net capital, NSCC may then charge the firm an amount
equal to such excess or the sum of each of the absolute values of the
affected net unsettled positions, or a combination of both. MMDOM
operates to identify concentration within a given CUSIP.
---------------------------------------------------------------------------
\5\ NSCC's equity VaR model assumes a 99% confidence interval,
uses a 150-day historical look-back period, and assumes a three-day
liquidation period. In effect, NSCC assumes the market conditions
observed over the past 150 days are predictive of the market
conditions expected over the course of the next three business days.
Pursuant to Procedure XV, NSCC may exclude from the VaR charge ``Net
Unsettled Positions in classes of securities whose volatility is (x)
less amendable to statistical analysis, such as OTC Bulletin Board
or Pink Sheet issues or issues trading below a designated dollar
threshold, or (y) amendable to generally accepted statistical
analysis in a complex manner, such as municipal or corporate
bonds.'' The charge for such positions is determined by multiplying
the absolute value of the positions by a pre-determined percentage.
\6\ As used in Procedure XV, the term Market Maker means a firm
that is registered by FINRA as a Market Maker.
---------------------------------------------------------------------------
Pursuant to Procedure XV of the Rules, NSCC may calculate the VaR
and MMDOM components of a Member's Clearing Fund requirement after
taking into account any offsetting pending (i.e., non-fail) ID
transactions that have been confirmed and/or affirmed through an
institutional delivery system acceptable to NSCC (typically Omgeo LLC
(``Omgeo''), a joint venture of the Depository Trust and Clearing
Corporation and Thomson Reuters) (``ID Offset'').\7\ NSCC is proposing
to eliminate the ID Offset from its Clearing Fund calculations in order
to eliminate the market risk that, in the event NSCC ceases to act for
a Member with pending ID transactions, it may be unable to complete
those pending ID transactions in the time frame contemplated by its
current Clearing Fund calculations and, as a result, may have
insufficient margin in its Clearing Fund.
---------------------------------------------------------------------------
\7\ The changes proposed by this advance notice will not impact
NSCC's ID Net Service.
---------------------------------------------------------------------------
ID Transactions
The parties involved in an institutional trade include the
institutional investor (such as mutual funds, insurance companies,
hedge funds, bank trust departments, and pension funds), the investment
manager (who enters trade orders on behalf of institutional investors),
the buying broker and the selling broker, and custodian banks.\8\
Trades between the buying broker and the selling broker are typically
settled through NSCC's Continuous Net Settlement system (``CNS'').\9\
---------------------------------------------------------------------------
\8\ Prime broker ID transactions settling at NSCC are not
included in the ID Offset, as they are included in the Member's NSCC
activity once such transactions are affirmed, and, therefore, are
not addressed in this filing. The ID transactions included in the ID
Offset and described in this advance notice are activity that is
held in custody at a bank.
\9\ CNS is NSCC's core netting and allotting system, where all
eligible compared and recorded transactions for a particular
settlement date are netted by issue into one net long (buy) or net
short (sell) position, and NSCC becomes the contra-party for
settlement purposes, assuming the obligation of its Members that are
receiving securities to receive and pay for those securities, and
the obligation of Members that are delivering securities to make the
delivery.
---------------------------------------------------------------------------
Before ID trades are sent to DTC, where they settle delivery versus
payment, the trade allocation details are matched between the executing
broker and the institutional investor. After an executing broker has
provided a final notice of execution associated with the client's
order, most institutional clients will provide trade allocation details
to the executing broker using a service provided by Omgeo. When the
executing broker accepts and processes the trade allocations, an
electronic confirmation is provided through Omgeo's TradeSuite service
to the institutional investor or its agent (typically the institutional
client's custodian bank) for affirmation. Omgeo links with the various
parties to institutional trades to provide real-time central matching
capabilities, electronically comparing trade details and notifying
parties of any exceptions. After the trade allocation details are
affirmed, the trade is considered matched and institutional delivery
details are sent to DTC for settlement.
Completion of the money and securities settlement of institutional
trades occurs at DTC. Because
[[Page 3962]]
investment managers are not participants of and do not have direct
accounts at DTC, their securities are held in custodial accounts with
banks who are participants at DTC. Therefore, when the institutional
delivery details for confirmed and affirmed ID trades are sent to DTC
from Omgeo, the delivering investment manager's custodian bank or
broker, as the case may be, must authorize the delivery, generating a
deliver order that will settle in accordance with DTC's rules.
NSCC Risk Management receives a daily feed from Omgeo, including
both ID trades that have only been confirmed as well as those that have
also been affirmed. For purposes of the ID Offset, NSCC includes ID
trades that are confirmed and/or affirmed on trade date (T) and those
ID trades which have been affirmed on T+1 and remain affirmed through
settlement date (SD).
ID Offset
Procedure XV currently allows for a Member's net unsettled NSCC
position in a particular CUSIP to be compared to any pending ID
transactions settling at DTC for potential offset for purposes of
calculating the VaR and the MMDOM components of a Member's Clearing
Fund requirement, defined as the ID Offset. The ID Offset is based on
the assumption that, in the event of a Member insolvency, NSCC will be
able to close out any trades for which there is a corresponding ID
transaction settling at DTC by completing that ID transaction.
Therefore, the VaR and the MMDOM components are calculated after taking
into account any offsetting pending (i.e., non-fail) ID transactions
that have been confirmed and/or affirmed, reducing the Clearing Fund
requirement for those Members with ID transactions. ID transactions are
included in the ID Offset only if they are on the opposite side of the
market from the Member's net NSCC position (i.e., only if they reduce
that net position).
Potential Inability To Complete ID Transactions
Generally, when NSCC ceases to act for a Member, it is obligated,
for those transactions to which the trade guaranty has attached, to pay
for deliveries made by non-defaulting Members that are due, through
CNS, to the failed Member on the day of insolvency and the days
following. As described above, the current calculation of the VaR and
MMDOM components of NSCC's Clearing Fund are based on the assumption
that, in the event of a Member default, NSCC will be able to complete
the pending ID transactions that were used to offset that Member's
unsettled NSCC position. If NSCC is unable to complete the ID
transactions as contemplated by this calculation, then NSCC may need to
liquidate a portfolio that could be substantially different than the
portfolio that NSCC collected Clearing Fund for, leaving NSCC
potentially under collateralized and exposed to market risk, because
when it calculated the Clearing Fund requirement, NSCC assumed, under
its current rules, a portfolio that included Member positions to be
offset by ID transactions.
There are a number of reasons why NSCC may not be able to complete
an insolvent Member's open ID transactions. First, NSCC does not
guarantee ID transactions and completion of these transactions by the
counterparty of the ID transaction, which is not a Member of NSCC, is
voluntary. Further, the institutional customer is not a Member of NSCC,
is not bound by NSCC's Rules, and is not party to any legally binding
contract with NSCC that requires the institutional customer or its
custodian to complete the transaction. Finally, based on news that a
Member may be in distress or insolvent, the institutional customer or
its investment advisor may feel compelled to take immediate market
action with respect to the institutional buy or sell transaction, in
order to reduce its market risk; this effectively eliminates the option
for NSCC to complete these transactions, either entirely or on the
timetable assumed by the Clearing Fund calculation.
While NSCC's Risk Management systems net ID transactions by CUSIP
across all settlement days for the purposes of the ID Offset, ID
transactions settle trade by trade between the executing broker and the
custodian. As a result, the netted ID position used to offset the NSCC
position could potentially be comprised of thousands of individual
trades with hundreds of different counterparties. It would be time
consuming for NSCC to contact each counterparty individually to get
their agreement to complete ID transactions, which would delay the
determination of the portfolio requiring liquidation in the event of a
cease to act, and thus hold up the prompt close out of the defaulter's
open positions, exposing NSCC to additional market risk not covered by
the margin collected.
Implementation Time Frame
Following Commission approval, in order to mitigate the impact of
this advance notice, NSCC proposes to implement the changes set forth
in this filing on over an 18-month period. On a date no earlier than 10
days following notice to Members by Important Notice (``Initial
Implementation Date''), NSCC proposes to eliminate the ID Offset from
ID transactions that have only been confirmed, but have not yet been
affirmed. At this time, NSCC will continue to apply the ID Offset to ID
transactions that have been affirmed. During the 12-month period
following the Initial Implementation Date, NSCC will discuss with
Members, whose business will be affected by the elimination of the ID
Offset, mechanisms to mitigate this impact.
Beginning on a date approximately 12 months from the Initial
Implementation Date, and no earlier than 10 days following notice to
Members by Important Notice, NSCC will eliminate from the ID Offset all
affirmed ID transactions that have reached settlement date at the time
the Clearing Fund calculations are run. Three months later, or
approximately 15 months following the Initial Implementation Date, and
on a date no earlier than 10 days following notice to Members by
Important Notice, NSCC will eliminate from the ID Offset all affirmed
ID transactions that have reached either settlement date or the day
prior to settlement date. Finally, on a date approximately 18 months
following the Initial Implementation Date, and no earlier than 10 days
following notice to Members by Important Notice, NSCC will eliminate
the ID Offset entirely for all ID transactions. Members will be advised
of each proposed implementation date through issuance of NSCC Important
Notices, which are publically available at www.dtcc.com.
The table below illustrates this proposed implementation schedule:
[[Page 3963]]
Proposed Implementation Schedule for Elimination of ID Offsets
------------------------------------------------------------------------
Action Scheduled implementation
------------------------------------------------------------------------
Eliminate from ID Offset those ID Following approval of rule
transactions that have only been filing, and on a date no
confirmed, but have not yet been earlier than 10 days following
affirmed. notice to Members by Important
Notice (``Initial
Implementation Date'').
Eliminate from ID Offset all affirmed 12 months following the Initial
ID transactions that have reached Implementation Date, and on a
Settlement Date (``SD''). date no earlier than 10 days
following notice to Members by
Important Notice.
Eliminate from ID Offset all affirmed 15 months following the Initial
ID transactions that have reached SD Implementation Date, and on a
and the day prior to SD (SD-1). date no earlier than 10 days
following notice to Members by
Important Notice.
Eliminate from ID Offset all ID 18 months following the Initial
transactions. Implementation Date, and on a
date no earlier than 10 days
following notice to Members by
Important Notice.
------------------------------------------------------------------------
Proposed Rule Changes
NSCC proposes to amend Procedure XV to eliminate the ID Offset from
calculation of the VaR and MMDOM components of a Member's Clearing Fund
requirement as currently provided for in, with respect to CNS
transactions, Section I(A)(1)(a)(i) and Section I(A)(1)(d), and, with
respect to Balance Order transactions, Section I(A)(2)(a)(i) and
Section I(A)(2)(c).
Anticipated Effect on and Management of Risk
As a central counterparty, NSCC occupies an important role in the
securities settlement system by interposing itself between
counterparties to financial transactions and thereby reducing the risk
faced by participants and contributing to global financial stability.
In this role, however, NSCC is necessarily subject to certain risks in
the event of the default or failure of a Member.
NSCC reviews its risk management processes against federal
securities laws and rulemaking promulgated by the Commission, and
applicable regulatory and industry guidelines, including but not
limited to the Principles for Financial Market Infrastructures
(``PFMI'') of the Committee on Payment and Settlement Systems and the
Technical Committee of the International Organization of Securities
Commissions (``CPSS-IOSCO'').\10\ In accordance with Commission
rules,\11\ specifically Rule 17Ad-22(b)(1) addressing measurement and
management of credit exposures, Rule 17Ad-22(b)(2) addressing margin
requirements, and Rule 17Ad-22(d)(11) addressing default procedures,
and also in accordance with the PFMIs, this advance notice should
enhance NSCC's ability to more effectively manage its credit exposures
to participants, help ensure that it is able to cover its credit
exposures to its participants for all products through an effective,
risk-based margin system, limit NSCC's exposures and losses, and
enhance protections against market risk that may arise when NSCC ceases
to act for a Member with open ID transaction activity.
---------------------------------------------------------------------------
\10\ CPSS-IOSCO PFMI (April 2012), available at https://www.bis.org/publ/cpss101a.pdf.
\11\ Securities and Exchange Commission Release No. 34-68080
(October 22, 2012), 77 FR 66219 (November 2, 1012; File No. S7-08-11
(available at https://www.sec.gov/rules/final/2012/34-68080.pdf),
effective on January 2, 2013.
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants, or Others
While written comments relating to the advance notice have not yet
been solicited, NSCC has received a letter on behalf of certain Members
seeking further review of the impact of the proposed changes contained
in the advance notice and consideration of alternatives. NSCC notified
the Commission of the contents of the letter and promptly delivered a
response to those Members addressing their concerns. A Member working
group has been established to discuss mechanisms for impacted Members
to mitigate the potential impact of the rule changes described in this
filing.
III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action
The clearing agency may implement the proposed change pursuant to
Section 806(e)(1)(G) of the Clearing Supervision Act \12\ if it has not
received an objection to the proposed change within 60 days of the
later of (i) the date that the Commission received the advance notice
or (ii) the date the Commission receives any further information it
requested for consideration of the notice. The clearing agency shall
not implement the proposed change if the Commission has any objection
to the proposed change.
---------------------------------------------------------------------------
\12\ 12 U.S.C. 5465(e)(1)(G).
---------------------------------------------------------------------------
The Commission may extend the period for review by an additional 60
days if the proposed change raises novel or complex issues, subject to
the Commission providing the clearing agency with prompt written notice
of the extension. A proposed change may be implemented in less than 60
days from the date of receipt of the advance notice, or the date the
Commission receives any further information it requested, if the
Commission notifies the clearing agency in writing that it does not
object to the proposed change and authorizes the clearing agency to
implement the proposed change on an earlier date, subject to any
conditions imposed by the Commission. The clearing agency shall post
notice on its Web site of proposed changes that are implemented.
The proposal shall not take effect until all regulatory actions
required with respect to the proposal are completed.\13\
---------------------------------------------------------------------------
\13\ NSCC also filed the proposals contained in this advance
notice as a proposed rule change under Section 19(b)(1) of the Act
and Rule 19b-4 thereunder. 15 U.S.C. 78s(b)(1); 17 CFR 240.19b-4.
Pursuant to Section 19(b)(2) of the Act, within 45 days of the date
of publication of the proposed rule change in the Federal Register
or within such longer period up to 90 days if the Commission
designates or the self-regulatory organization consents the
Commission will either: (i) By order approve or disapprove the
proposed rule change or (ii) institute proceedings to determine
whether the proposed rule change should be disapproved. 17 U.S.C.
78s(b)(2)(A). See Release No. 34-68549 (December 28, 2012), 78 FR
792 (January 4, 2013).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the advance
notice is consistent with the Clearing Supervision Act. Comments may be
submitted by any of the following methods:
[[Page 3964]]
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NSCC-2012-810 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-2012-810. This file
number should be included on the subject line if email 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 advance notice that are filed
with the Commission, and all written communications relating to the
advance notice 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 10:00 a.m. and
3:00 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://dtcc.com/downloads/legal/rule_filings/2012/nscc/SR-NSCC-2012-10.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-2012-810 and should be submitted on or before February 7, 2013.
By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-00772 Filed 1-16-13; 8:45 am]
BILLING CODE 8011-01-P
