Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Amend the Clearing Rules of the Mortgage-Backed Securities Division To Establish a Membership Category and Minimum Financial Requirements for Insured Credit Unions, 63657-63659 [2014-25301]
Download as PDF
Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
on the investment advisory fees paid by
the relevant Fund.
Applicants’ Conditions
Applicants agree that the Order
granting the requested relief will be
subject to the following Conditions:
1. The Registered Fund will sell to the
BDC Applicant, prior to the expiration
of the requested Order, all of the
Qualifying Assets owned by the
Registered Fund. In approving any
Proposed Transaction under the
requested Order, the Required Majority
of each Fund will be required
specifically to consider the effect that
such transaction, and the Proposed
Transactions taken together, would have
on the investment advisory fees paid by
the relevant Fund. If any Eligible Assets
are acquired in follow-on investments
made after the date the Order was
granted, the Manager will document
contemporaneously why it believes each
follow-on investment helps protect the
assets previously owned by the
Registered Fund to which the follow-on
investment relates.
2. Each of the Eligible Assets shall
have been subject to periodic valuation
in accordance with methods adopted
and reviewed at least annually by the
independent directors, as defined in
section 2(a)(19) of the 1940 Act, of each
Fund in accordance with rule 38a–1
under the 1940 Act.
3. The Registered Fund shall have
sold in Bona Fide Third-Party
Transactions subject to broad market
exposure or competitive bidding to
independent third-party buyers (none of
whom are the issuer of the respective
asset to the knowledge of the Applicants
or are affiliated persons of the
Applicants under the 1940 Act) (i) for
each Qualifying Asset valued at greater
than $10 million, at least the greater of
(A) 10% of the holdings by the
Registered Fund of each Qualifying
Asset or (B) $5,000,000 in proceeds of
such Qualifying Asset or (ii) for each
Qualifying Asset valued at $10,000,000
or less, at least 30% of the holdings by
the Registered Fund of each Qualifying
Asset.
4. In any transaction between the
Funds under the requested Order, (i) the
trade date for sale to the BDC Applicant
shall be the same as the trade date for
the independent sale of a portion of the
Qualifying Asset under Condition 3, (ii)
the transaction price shall be such
independent sale price less any
intermediary compensation, such as a
sales commission or known spread, paid
by the Registered Fund in the open
market sale, (iii) 66.7%, or two-thirds, of
the transactions will have a sale price
within 1.5% of the fair value most
VerDate Sep<11>2014
20:00 Oct 23, 2014
Jkt 235001
recently assigned by the Registered
Fund pursuant to its valuation methods,
policies, and procedures, and 100% of
the transactions will have a sale price in
the market within 2.5% of the fair value
most recently assigned by the Registered
Fund pursuant to its valuation methods,
policies, and procedures (iv) the
Manager shall represent to the
Independent Directors of the Registered
Fund and the BDC Applicant that it has
no reason to believe that the sale price
received by the Registered Fund
pursuant to Condition 3 above does not
reasonably approximate (on a pro rata
basis) the sale price that would have
been received by the Registered Fund
had the Registered Fund’s entire interest
been sold in such transaction and that,
in the Manager’s judgment, the
Proposed Transaction between the
Funds would not, at the time of such
transaction, preclude the BDC Applicant
from acquiring an asset more beneficial
to its shareholders’ interests, and (v) the
price shall be payable in cash at
settlement.
5. Any transaction under the
requested Order involving Eligible
Assets jointly owned under the CoInvestment Order (including a decision
not to include an Eligible Asset as a
Qualifying Asset) shall comply with the
terms and conditions of the CoInvestment Order, as applicable.
6. No Proposed Transaction or Bona
Fide Third-Party Transaction shall
involve any consideration other than
cash payment against prompt delivery
of Qualifying Assets. No brokerage
commission, fee, or other remuneration
shall be paid in connection with any
Proposed Transaction. A Bona Fide
Third-Party Transaction may include
customary transaction expenses paid to
persons who are not affiliated persons of
the Applicants, but no Bona Fide ThirdParty Transaction will involve any
arrangement, understanding, or any
direct or indirect quid pro quo that goes
beyond the market terms of such
transaction. No Bona Fide Third-Party
Transaction shall involve any
arrangement or understanding directed
at facilitating the Applicants’ reliance
on the requested Order. For any Bona
Fide Third-Party Transaction, the
Registered Fund will not knowingly sell
any Qualifying Asset to the issuer of
such asset. The Applicants will not
attempt to circumvent the above
restrictions by entering into any
arrangements or understandings that are
economically similar to the ones
proscribed by the above restrictions.
7. The Registered Fund and the BDC
Applicant shall maintain records
demonstrating satisfaction of each of the
foregoing Conditions in the manner and
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Frm 00061
Fmt 4703
Sfmt 4703
63657
for the periods set forth in rule 17a–7(g)
under the 1940 Act.
8. The requested Order, if granted,
shall expire upon the earlier of the date
of termination of TOF or October 10,
2018.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–25302 Filed 10–23–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73391; File No. SR–FICC–
2014–07]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change To
Amend the Clearing Rules of the
Mortgage-Backed Securities Division
To Establish a Membership Category
and Minimum Financial Requirements
for Insured Credit Unions
October 20, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
15, 2014, Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by FICC. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The purpose of this filing is to amend
the Clearing Rules (the ‘‘Rules’’) of the
Mortgage-Backed Securities Division
(‘‘MBSD’’) of FICC in order to establish
a membership category and financial
minimum requirements for insured
credit unions.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
FICC included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
1 15
2 17
E:\FR\FM\24OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
24OCN1
63658
Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices
in Item IV below. FICC has prepared
summaries, set forth in sections A, B
and C below, of the most significant
aspects of such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(1) Purpose
asabaliauskas on DSK5VPTVN1PROD with NOTICES
The purpose of this proposed rule
change is to establish a membership
category and minimum financial
requirements for ‘‘insured credit
unions’’ as such term is defined in the
Federal Credit Union Act (‘‘FCUA’’).3
The FCUA defines ‘‘insured credit
unions’’ to mean ‘‘any credit union the
member accounts of which are insured
in accordance with Title II of [FCUA]’’.4
Because Title II of the FCUA requires all
credit unions that are chartered by the
National Credit Union Administration 5
(‘‘federal credit unions’’) to have
insured accounts, the term ‘‘insured
credit union’’ includes all insured
federal credit unions. Because Title II of
the FCUA permits the NCUA Board to
insure (i) State credit unions and (ii)
credit unions operating under the
jurisdiction of the Department of
Defense (‘‘Defense Credit Unions’’), as
long as such credit unions comply with
FCUA and implementing NCUA
regulations, the term ‘‘insured credit
unions’’ also includes both federallyinsured State credit unions and
federally-insured Defense Credit
Unions. It should be noted, however,
that the proposed category for ‘‘insured
credit unions’’ does not encompass
credit unions whose accounts have
private or other types of non-federal
insurance. As a result, any such credit
unions will not be permitted to join
MBSD.
FICC believes the participation of this
category as guaranteed service members
will contribute to the safety, efficiency,
and transparency of the market by
allowing FICC to capture a greater part
of the activity of its existing members
and by introducing activity of current
non-members to FICC. FICC also
believes that insured credit unions will
benefit from the MBSD clearing service
and the associated operational
3 Federal Credit Union Act, 12 U.S.C.
1752(7)(2013).
4 12 U.S.C. 1752(7).
5 The National Credit Union Administration
(NCUA) is the independent federal agency that
regulates, charters and supervises federal credit
unions. With the backing of the full faith and credit
of the U.S. Government, NCUA operates and
manages the National Credit Union Share Insurance
Fund (NCUSIF), insuring the deposits of more than
95 million account holders in all federal credit
unions and the overwhelming majority of statechartered credit unions. See www.ncua.gov.
VerDate Sep<11>2014
20:00 Oct 23, 2014
Jkt 235001
efficiencies of a central counterparty
service.
Specifically, this filing proposes to
revise MBSD Rule 2A (‘‘Initial
Membership Requirements’’) to include
a category for insured credit unions that
are in good standing with their primary
regulators and to establish minimum
financial requirements for such
category. Such applicants will be
required to have a level of equity capital
as of the end of the month prior to the
effective date of their membership of at
least $100 million and achieve the ‘‘well
capitalized’’ statutory net worth
category classification defined by the
NCUA under 12 CFR Part 702.
In addition to meeting the required
financial resources and creditworthiness
requirements (which are based on entity
type, the types of services the applicant
will use and the type of accounting
principles used to prepare their audited
financial statements), applicants in this
new category will have to demonstrate
that (1) they have an established
profitable business history of a
minimum of 6 months or personnel
with sufficient operational background
and business experience for the firm to
conduct its business and to be a member
(as is required of all other membership
categories) and (2) they are able to
satisfactorily communicate with FICC,
fulfill anticipated commitments to and
meet the operational requirements of
FICC with necessary promptness and
accuracy, and conform to any condition
and requirement that FICC reasonably
deems necessary for its protection or
that of its Members.6
The proposed changes to MBSD Rule
2A provide that insured credit unions
will be designated as ‘‘Tier One Clearing
Members’’ for loss allocation purposes.7
(2) Statutory Basis
The present filing is consistent with
the requirements of Section 17A(b)(3)(F)
of the Securities Exchange Act of 1934,
as amended, and the rules and
regulations thereunder applicable to
FICC because the proposed rule change
permits the participation of insured
credit unions, thereby providing these
firms with the benefits of the central
counterparty service, which includes,
among other things, trade comparison,
to-be-announced netting, electronic pool
notification allocation, pool
comparison, pool netting, settlement,
and risk management for eligible
securities. In addition, this proposal
allows FICC to capture a greater market
6 MBSD Rule 2A Section 2, Mortgage-Backed
Securities Division Clearing Rules.
7 MBSD Rule 4 Section 7, Mortgage-Backed
Securities Division Clearing Rules.
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Frm 00062
Fmt 4703
Sfmt 4703
share of the activity of its existing
members and non-members thus
promoting the prompt and accurate
clearance and settlement of securities
transactions. Under the proposed rule
change, existing members will be able to
submit their eligible trading activity
with entities in the proposed
membership category to MBSD and
thereby obtain the benefits of the central
counterparty service for such trading
activity.
(B) Clearing Agency’s Statement on
Burden on Competition
FICC does not believe that the
proposed rule change will have any
impact, or impose any burden, on
competition.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
Written comments relating to the
proposed rule changes have not yet been
solicited or received. FICC will notify
the Commission of any written
comments received by FICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) by order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
The proposal shall not take effect
until all regulatory actions required
with respect to the proposal are
completed.
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 email to rule-comments@
sec.gov. Please include File Number SR–
FICC–2014–07 on the subject line.
E:\FR\FM\24OCN1.SGM
24OCN1
Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FICC–2014–07. 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 proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549–1090 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of FICC and on FICC’s Web site:
https://www.dtcc.com/∼/media/Files/
Downloads/legal/rule-filings/2014/ficc/
SR-FICC-2014-07.pdf.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–FICC–2014–07 and should
be submitted on or before November 14,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.8
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–25301 Filed 10–23–14; 8:45 am]
BILLING CODE 8011–01–P
asabaliauskas on DSK5VPTVN1PROD with NOTICES
DEPARTMENT OF STATE
[Public Notice 8931]
Department of State Performance
Review Board Members; Appointments
In accordance with section 4314(c)(4)
of 5 United States Code, the Department
8 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
20:00 Oct 23, 2014
Jkt 235001
of State has appointed the following
individuals to the Department of State
Performance Review Board for Senior
Executive Service members:
Christopher H. Flaggs, Chairperson,
Comptroller, Bureau of the Comptroller
and Global Financial Services,
Department of State;
Kelly Clements, Deputy Assistant
Secretary, Bureau of Population,
Refugees, and Migration, Department of
State;
Hoyt B. Yee, Deputy Assistant
Secretary, Bureau of European and
Eurasian Affairs, Department of State;
and
Mary Catherine Malin, Assistant Legal
Advisor, Office of the Legal Advisor,
Department of State.
Dated: October 14, 2014.
Hans Klemm,
Acting Director General of the Foreign Service
and Director of Human Resources,
Department of State.
[FR Doc. 2014–25353 Filed 10–23–14; 8:45 am]
BILLING CODE 4710–15–P
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
Innovative Public Transportation
Workforce Development Program
(Ladders of Opportunity Initiative)
AGENCY:
Federal Transit Administration,
DOT.
ACTION:
Notice of Funding Availability.
The Federal Transit
Administration (FTA) announces a
Notice of Funding Availability (NOFA)
for the Innovative Public Transportation
Workforce Development Program
(Ladders of Opportunity Initiative). FTA
has budgeted approximately $9 million
for this solicitation. This NOFA solicits
proposals that promote innovative
nationally and regionally significant
public transportation workforce
development models and programs that
invest in America’s economic growth
and help build ladders of opportunity
into the middle class for American
workers.
DATES: Complete proposals are due by
11:59 p.m. EST on December 23, 2014.
ADDRESSES: All proposals must be
submitted electronically through the
GRANTS.GOV ‘‘APPLY’’ function. All
entities intending to apply should
initiate the process of registering on the
GRANTS.GOV Web site immediately to
ensure completion of registration before
the submission deadline. Instructions
for applying can be found in the ‘‘FIND’’
module of GRANTS.GOV. Mail and fax
submissions will not be accepted.
SUMMARY:
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
63659
For
specific information regarding the areas
of research targeted within this NOFA,
please contact Betty Jackson, Workforce
Development Program Manager, Office
of Research, Demonstration and
Innovation, phone: (202) 366–1730, fax:
(202) 366–3765, or email:
betty.jackson@dot.gov. A TDD is
available at 1–800–877–8339 (TDD/
FIRS).
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
I. Discretionary Program Overview
A. Authority
Section 5322(b) of Title 49, United
States Code authorizes FTA’s
discretionary Innovative Public
Transportation Workforce Development
Program, pursuant to which FTA makes
grants to transit agencies and other
entities to undertake workforce
development activities, including those
that create employment training
programs, conduct outreach programs to
increase minority and female
employment in transit, conduct research
on public transportation personnel and
training needs, and provide training and
assistance for minority business
opportunities. Under this authority,
FTA is issuing this funding opportunity
for the Innovative Public Transportation
Workforce Development, Ladders of
Opportunity Initiative. FTA plans to
fund nationally or regionally significant
public transportation workforce projects
that will assist in building ladders of
opportunity for American workers to
move into the middle class, as well as
build the critical skillset needed in the
public transportation industry.
FTA has budgeted approximately
$9,000,000 for the program. FTA may
choose to fund the program for more or
less than the announced amount,
including applying any future
appropriated funds toward the projects
proposed in response to this NOFA.
Future funding will depend in part on
Congressional appropriation.
B. Policy Priorities
Supporting a highly-skilled transit
workforce is critical to maintaining a
competitive and efficient public
transportation system. As public
transportation experiences significant
growth in the United States and
investments continue in the physical
capital of the nation’s transit systems, it
is essential to build and maintain the
nation’s human capital in public
transportation as well.
FTA is seeking projects that create a
new nationally or regionally significant
workforce development program, or
augment or replicate a successful
E:\FR\FM\24OCN1.SGM
24OCN1
Agencies
[Federal Register Volume 79, Number 206 (Friday, October 24, 2014)]
[Notices]
[Pages 63657-63659]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-25301]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73391; File No. SR-FICC-2014-07]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing of Proposed Rule Change To Amend the Clearing Rules of
the Mortgage-Backed Securities Division To Establish a Membership
Category and Minimum Financial Requirements for Insured Credit Unions
October 20, 2014.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 15, 2014, Fixed Income Clearing Corporation (``FICC'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I, II, and III below, which
Items have been prepared by FICC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The purpose of this filing is to amend the Clearing Rules (the
``Rules'') of the Mortgage-Backed Securities Division (``MBSD'') of
FICC in order to establish a membership category and financial minimum
requirements for insured credit unions.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, FICC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified
[[Page 63658]]
in Item IV below. FICC has prepared summaries, set forth in sections A,
B and C below, of the most significant aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(1) Purpose
The purpose of this proposed rule change is to establish a
membership category and minimum financial requirements for ``insured
credit unions'' as such term is defined in the Federal Credit Union Act
(``FCUA'').\3\ The FCUA defines ``insured credit unions'' to mean ``any
credit union the member accounts of which are insured in accordance
with Title II of [FCUA]''.\4\ Because Title II of the FCUA requires all
credit unions that are chartered by the National Credit Union
Administration \5\ (``federal credit unions'') to have insured
accounts, the term ``insured credit union'' includes all insured
federal credit unions. Because Title II of the FCUA permits the NCUA
Board to insure (i) State credit unions and (ii) credit unions
operating under the jurisdiction of the Department of Defense
(``Defense Credit Unions''), as long as such credit unions comply with
FCUA and implementing NCUA regulations, the term ``insured credit
unions'' also includes both federally-insured State credit unions and
federally-insured Defense Credit Unions. It should be noted, however,
that the proposed category for ``insured credit unions'' does not
encompass credit unions whose accounts have private or other types of
non-federal insurance. As a result, any such credit unions will not be
permitted to join MBSD.
---------------------------------------------------------------------------
\3\ Federal Credit Union Act, 12 U.S.C. 1752(7)(2013).
\4\ 12 U.S.C. 1752(7).
\5\ The National Credit Union Administration (NCUA) is the
independent federal agency that regulates, charters and supervises
federal credit unions. With the backing of the full faith and credit
of the U.S. Government, NCUA operates and manages the National
Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of
more than 95 million account holders in all federal credit unions
and the overwhelming majority of state-chartered credit unions. See
www.ncua.gov.
---------------------------------------------------------------------------
FICC believes the participation of this category as guaranteed
service members will contribute to the safety, efficiency, and
transparency of the market by allowing FICC to capture a greater part
of the activity of its existing members and by introducing activity of
current non-members to FICC. FICC also believes that insured credit
unions will benefit from the MBSD clearing service and the associated
operational efficiencies of a central counterparty service.
Specifically, this filing proposes to revise MBSD Rule 2A
(``Initial Membership Requirements'') to include a category for insured
credit unions that are in good standing with their primary regulators
and to establish minimum financial requirements for such category. Such
applicants will be required to have a level of equity capital as of the
end of the month prior to the effective date of their membership of at
least $100 million and achieve the ``well capitalized'' statutory net
worth category classification defined by the NCUA under 12 CFR Part
702.
In addition to meeting the required financial resources and
creditworthiness requirements (which are based on entity type, the
types of services the applicant will use and the type of accounting
principles used to prepare their audited financial statements),
applicants in this new category will have to demonstrate that (1) they
have an established profitable business history of a minimum of 6
months or personnel with sufficient operational background and business
experience for the firm to conduct its business and to be a member (as
is required of all other membership categories) and (2) they are able
to satisfactorily communicate with FICC, fulfill anticipated
commitments to and meet the operational requirements of FICC with
necessary promptness and accuracy, and conform to any condition and
requirement that FICC reasonably deems necessary for its protection or
that of its Members.\6\
---------------------------------------------------------------------------
\6\ MBSD Rule 2A Section 2, Mortgage-Backed Securities Division
Clearing Rules.
---------------------------------------------------------------------------
The proposed changes to MBSD Rule 2A provide that insured credit
unions will be designated as ``Tier One Clearing Members'' for loss
allocation purposes.\7\
---------------------------------------------------------------------------
\7\ MBSD Rule 4 Section 7, Mortgage-Backed Securities Division
Clearing Rules.
---------------------------------------------------------------------------
(2) Statutory Basis
The present filing is consistent with the requirements of Section
17A(b)(3)(F) of the Securities Exchange Act of 1934, as amended, and
the rules and regulations thereunder applicable to FICC because the
proposed rule change permits the participation of insured credit
unions, thereby providing these firms with the benefits of the central
counterparty service, which includes, among other things, trade
comparison, to-be-announced netting, electronic pool notification
allocation, pool comparison, pool netting, settlement, and risk
management for eligible securities. In addition, this proposal allows
FICC to capture a greater market share of the activity of its existing
members and non-members thus promoting the prompt and accurate
clearance and settlement of securities transactions. Under the proposed
rule change, existing members will be able to submit their eligible
trading activity with entities in the proposed membership category to
MBSD and thereby obtain the benefits of the central counterparty
service for such trading activity.
(B) Clearing Agency's Statement on Burden on Competition
FICC does not believe that the proposed rule change will have any
impact, or impose any burden, on competition.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
Written comments relating to the proposed rule changes have not yet
been solicited or received. FICC will notify the Commission of any
written comments received by FICC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
The proposal shall not take effect until all regulatory actions
required with respect to the proposal are completed.
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 email to rule-comments@sec.gov. Please include
File Number SR-FICC-2014-07 on the subject line.
[[Page 63659]]
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-FICC-2014-07. 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 proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549-1090 on official business days between the hours
of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of FICC and on
FICC's Web site: https://www.dtcc.com/~/media/Files/Downloads/legal/
rule-filings/2014/ficc/SR-FICC-2014-07.pdf.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-FICC-2014-07
and should be submitted on or before November 14, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-25301 Filed 10-23-14; 8:45 am]
BILLING CODE 8011-01-P