Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make a Clarification and Technical Changes to Addendum K, 26457-26459 [2019-11803]
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Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / Notices
initial Form ATS–N disclosures and
discussions with SuperX ATS.
In the conversations between SuperX
ATS and Commission staff about the
initial Form ATS–N disclosures and the
ATS operations, Commission staff and
SuperX ATS have discussed a potential
amendment to update SuperX ATS’s
disclosures regarding the complexities
of its operations. Extending the review
period will enable the NMS Stock ATS
to amend its disclosures, if appropriate,
and allow Commission staff to conduct
a thorough review of amendments to the
initial disclosures provided on the
initial Form ATS–N.
For the reasons given above, the
Commission is extending the review
period of the initial Form ATS–N
submitted by SuperX ATS. Accordingly,
pursuant to Rule 304(a)(1)(iv)(B),
October 4, 2019 is the date by which the
Commission may declare the initial
Form ATS–N submitted by SuperX ATS
ineffective.
By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11826 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85982; File No. 013–00107]
Initial Form ATS–N Filing; Notice of
Extension of Commission Review
Period
khammond on DSKBBV9HB2PROD with NOTICES
May 31, 2019.
On February 8, 2019, Liquidnet
Negotiation ATS filed an initial Form
ATS–N (‘‘Form ATS–N’’) with the
Securities and Exchange Commission
(‘‘Commission’’). Pursuant to Rule 304
under the Securities and Exchange Act
of 1934 (‘‘Act’’), the Commission may,
after notice and an opportunity for
hearing, declare an initial Form ATS–N
ineffective no later than 120 days from
the date of filing with the Commission,
or, if applicable, the extended review
period. June 8, 2019 is 120 calendar
days from the date of filing. Pursuant to
Rule 304(a)(1)(iv)(B), the Commission
may extend the initial Form ATS–N
review period for up to an additional
120 calendar days if the initial Form
ATS–N is unusually lengthy or raises
novel or complex issues that require
additional time for review.
Liquidnet Negotiation ATS was
operating pursuant to an initial
operation report on Form ATS on file
with the Commission as of January 7,
VerDate Sep<11>2014
16:11 Jun 05, 2019
Jkt 247001
2019.1 Liquidnet Negotiation ATS filed
an initial Form ATS–N on February 8,
2019. During the initial 120 calendar
day review period, the Commission staff
has been reviewing the disclosures on
Liquidnet Negotiation ATS’s initial
Form ATS–N. In addition, the staff has
been engaged in ongoing discussions
with Liquidnet Negotiation ATS about
its disclosures and manner of
operations, as well as the requirements
of Form ATS–N, to facilitate complete
and comprehensible disclosures that
reflect the complexities of those
operations.
Form ATS–N requires NMS Stock
ATSs to file with the Commission, and
disclose to the public for the first time,
certain information, including
descriptions by the NMS Stock ATSs of
their fees, the trading activities by their
broker-dealer operators and their
affiliates in the NMS Stock ATSs, their
use of market data, their written
standards for granting access to trading
on the NMS Stock ATSs, and their
written safeguards and procedures for
protecting their subscribers’ confidential
trading information required by revised
Rule 301(b)(10) of Regulation ATS. The
initial Form ATS–N disclosures and
discussions with Commission staff have
revealed complexities about the
operations of Legacy NMS Stock ATSs
including, among other things, matching
functionalities, means of order entry,
order interaction and execution
procedures, conditional order processes,
segmentation of orders, and
counterparty selection protocols. The
Commission staff needs additional time
to review novel and complex issues
such as these, which Commission staff
has discussed with Liquidnet
Negotiation ATS. Extending the initial
Form ATS–N Commission review
period for an additional 120 calendar
days will provide Commission staff an
opportunity to continue its review of the
initial Form ATS–N disclosures and
discussions with Liquidnet Negotiation
ATS.
In the conversations between
Liquidnet Negotiation ATS and
Commission staff about the initial Form
ATS–N disclosures and the ATS
operations, Commission staff and
Liquidnet Negotiation ATS have
discussed a potential amendment to
update Liquidnet Negotiation ATS’s
disclosures regarding the complexities
of its operations. Extending the review
period will enable the NMS Stock ATS
to amend its disclosures, if appropriate,
1 An NMS Stock ATS (as defined in Rule 300(k)
of Regulation ATS) that was operating pursuant to
an initial operation report on Form ATS on file with
the Commission as of January 7, 2019 is a ‘‘Legacy
NMS Stock ATS.’’ 17 CFR 242.301(b)(2)(viii).
PO 00000
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Fmt 4703
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26457
and allow Commission staff to conduct
a thorough review of amendments to the
initial disclosures provided on the
initial Form ATS–N.
For the reasons given above, the
Commission is extending the review
period of the initial Form ATS–N
submitted by Liquidnet Negotiation
ATS. Accordingly, pursuant to Rule
304(a)(1)(iv)(B), October 6, 2019 is the
date by which the Commission may
declare the initial Form ATS–N
submitted by Liquidnet Negotiation
ATS ineffective.
By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11828 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85984; File No. SR–NSCC–
2019–001]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Make a Clarification
and Technical Changes to Addendum
K
May 31, 2019.
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 May 29,
2019, National Securities Clearing
Corporation (‘‘NSCC’’) 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 the clearing agency. NSCC filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(1) thereunder.4 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 proposed rule change consists of
amendments to Addendum K of NSCC’s
Rules & Procedures (‘‘Rules’’) in order to
make a clarification and technical
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(1).
2 17
E:\FR\FM\06JNN1.SGM
06JNN1
26458
Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / Notices
changes, as described in greater detail
below.5
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
clearing agency 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
khammond on DSKBBV9HB2PROD with NOTICES
The proposed rule change would
amend Addendum K to make a
clarification and technical changes, as
described in greater detail below. The
proposed rule change is only clarifying
the language of the NSCC guaranty and,
therefore, would not change any of the
rights and obligations of NSCC’s
Members.
Addendum K describes NSCC’s trade
guaranty to Members regarding their
CNS and balance order transactions.
The proposed rule change would clarify
Addendum K by adding language that
was inadvertently deleted from the
Rules in connection with the approval
by the Commission of rule filing SR–
NSCC–2016–005 6 and notice of no
objection to advance notice SR–NSCC–
2016–803.7 Specifically, the proposed
rule change would add ‘‘, and, in either
case,’’ after clause (ii) in the third
sentence to make it clear that NSCC is
guaranteeing balance order transactions
through the close of business on T+2,
whether submitted bilaterally or lockedin.
NSCC is also proposing to make the
following technical changes to
Addendum K:
(1) Delete the word ‘‘orders’’ in the
first sentence and replace it with
‘‘order’’ to be consistent with the use of
this phrase in the Rules.
(2) Replace the word ‘‘guarantee’’
with ‘‘guaranty’’ in footnote 1 as well as
5 Capitalized terms not defined herein are defined
in the Rules, available at https://www.dtcc.com/∼/
media/Files/Downloads/legal/rules/nscc_rules.pdf.
6 Securities Exchange Act Release No. 79598
(December 19, 2016), 81 FR 94462 (December 23,
2016) (SR–NSCC–2016–005).
7 Securities Exchange Act Release No. 79592
(December 19, 2016), 81 FR 94448 (December 23,
2016) (SR–NSCC–2016–803).
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16:11 Jun 05, 2019
Jkt 247001
in the fourth sentence to be consistent
with the use of this term in the Rules.
(3) Replace the reference to ‘‘NSCC’’
in footnote 1 with ‘‘the Corporation’’ to
be consistent with the use of this term
in the Rules.
(4) Replace the reference to ‘‘Options
Clearing Corporation’’ in footnote 1 with
‘‘The Options Clearing Corporation’’ to
reflect the proper legal name of the
entity referenced.
2. Statutory Basis
NSCC believes this proposal is
consistent with the requirements of the
Act, and the rules and regulations
thereunder applicable to a registered
clearing agency. Specifically, NSCC
believes this proposal is consistent with
Section 17A(b)(3)(F) 8 of the Act and
Rule 17Ad–22(e)(23)(i),9 as promulgated
under the Act, for the reasons described
below.
Section 17A(b)(3)(F) of the Act
requires, in part, that the Rules be
designed to promote the prompt and
accurate clearance and settlement of
securities transactions.10 NSCC believes
that the proposed rule change would
promote prompt and accurate clearance
and settlement of securities
transactions. This is because the
proposed rule change would: (i) Clarify
the provision regarding the NSCC
guaranty by adding language that
reflects how the guaranty works and
that was inadvertently deleted in a
previous rule filing and (ii) make
technical changes that would promote
consistency in terminology usage and
reflect a proper legal entity name, all of
which would ensure that the Rules are
clear and consistent. Having clear and
consistent Rules would help Members
to better understand their rights and
obligations regarding NSCC’s clearance
and settlement services. NSCC believes
that when Members better understand
their rights and obligations regarding
NSCC’s clearance and settlement
services, they can better act in
accordance with the Rules. NSCC
believes that better enabling Members to
comply with the Rules would promote
the prompt and accurate clearance and
settlement of securities transactions by
NSCC. As such, NSCC believes the
proposed rule changes are consistent
with Section 17A(b)(3)(F) of the Act.
Rule 17Ad–22(e)(23)(i) under the Act
requires NSCC to establish, implement,
maintain and enforce written policies
and procedures reasonably designed to
publicly disclose all relevant rules and
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(23)(i).
10 15 U.S.C. 78q–1(b)(3)(F).
material procedures.11 NSCC believes
that the proposed rule change would
improve the clarity and the
transparency of the Rules by clarifying
language and making the technical
changes described in detail above.
NSCC believes that by enhancing the
clarity and transparency of the Rules
(here in particular, the provisions
associated with the NSCC guaranty),
NSCC would ensure that the Rules
disclose all relevant and material
aspects of NSCC’s guaranty. As such,
NSCC believes these proposed rule
changes are consistent with Rule 17Ad–
22(e)(23)(i) under the Act.
(B) Clearing Agency’s Statement on
Burden on Competition
NSCC does not believe the proposed
rule changes would impact competition.
These changes are a clarification and
technical changes that would not
change NSCC’s current practices or
affect Members’ rights and obligations.
As such, NSCC believes these proposed
rule changes would not have any impact
on competition.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
Written comments relating to this
proposed rule change have not been
solicited or received. NSCC will notify
the Commission of any written
comments received by NSCC.
III. Date of Effectiveness of the
Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 12 and paragraph (f) of Rule
19b–4 thereunder.13 At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
8 15
11 17
9 17
12 15
PO 00000
Frm 00062
Fmt 4703
Sfmt 4703
CFR 240.17Ad–22(e)(23)(i).
U.S.C. 78s(b)(3)(A).
13 17 CFR 240.19b–4(f).
E:\FR\FM\06JNN1.SGM
06JNN1
Federal Register / Vol. 84, No. 109 / Thursday, June 6, 2019 / Notices
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–2019–001 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
khammond on DSKBBV9HB2PROD with NOTICES
All submissions should refer to File
Number SR–NSCC–2019–001. 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 website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference 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 the
filing also will be available for
inspection and copying at the principal
office of NSCC and on DTCC’s website
(https://dtcc.com/legal/sec-rulefilings.aspx). All comments received
will be posted without change. Persons
submitting comments are cautioned that
we do not redact or edit personal
identifying information from comment
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NSCC–
2019–001 and should be submitted on
or before June 27, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11803 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:11 Jun 05, 2019
Jkt 247001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86008; File No. 013–00111]
Initial Form ATS–N Filing; Notice of
Extension of Commission Review
Period
June 3, 2019.
On February 8, 2019, POSIT filed an
initial Form ATS–N (‘‘Form ATS–N’’)
with the Securities and Exchange
Commission (‘‘Commission’’). Pursuant
to Rule 304 under the Securities and
Exchange Act of 1934 (‘‘Act’’), the
Commission may, after notice and an
opportunity for hearing, declare an
initial Form ATS–N ineffective no later
than 120 days from the date of filing
with the Commission, or, if applicable,
the extended review period. June 8,
2019 is 120 calendar days from the date
of filing. Pursuant to Rule
304(a)(1)(iv)(B), the Commission may
extend the initial Form ATS–N review
period for up to an additional 120
calendar days if the initial Form ATS–
N is unusually lengthy or raises novel
or complex issues that require
additional time for review.
POSIT was operating pursuant to an
initial operation report on Form ATS on
file with the Commission as of January
7, 2019.1 POSIT filed an initial Form
ATS–N on February 8, 2019. During the
initial 120 calendar day review period,
the Commission staff has been
reviewing the disclosures on POSIT’s
initial Form ATS–N. In addition, the
staff has been engaged in ongoing
discussions with POSIT about its
disclosures and manner of operations,
as well as the requirements of Form
ATS–N, to facilitate complete and
comprehensible disclosures that reflect
the complexities of those operations.
Form ATS–N requires NMS Stock
ATSs to file with the Commission, and
disclose to the public for the first time,
certain information, including
descriptions by the NMS Stock ATSs of
their fees, the trading activities by their
broker-dealer operators and their
affiliates in the NMS Stock ATSs, their
use of market data, their written
standards for granting access to trading
on the NMS Stock ATSs, and their
written safeguards and procedures for
protecting their subscribers’ confidential
trading information required by revised
Rule 301(b)(10) of Regulation ATS. The
initial Form ATS–N disclosures and
discussions with Commission staff have
1 An NMS Stock ATS (as defined in Rule 300(k)
of Regulation ATS) that was operating pursuant to
an initial operation report on Form ATS on file with
the Commission as of January 7, 2019 is a ‘‘Legacy
NMS Stock ATS.’’ 17 CFR 242.301(b)(2)(viii).
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
26459
revealed complexities about the
operations of Legacy NMS Stock ATSs
including, among other things, matching
functionalities, means of order entry,
order interaction and execution
procedures, conditional order processes,
segmentation of orders, and
counterparty selection protocols. The
Commission staff needs additional time
to review novel and complex issues
such as these, which Commission staff
has discussed with POSIT. Extending
the initial Form ATS–N Commission
review period for an additional 120
calendar days will provide Commission
staff an opportunity to continue its
review of the initial Form ATS–N
disclosures and discussions with
POSIT.
In the conversations between POSIT
and Commission staff about the initial
Form ATS–N disclosures and the ATS
operations, Commission staff and POSIT
have discussed a potential amendment
to update POSIT’s disclosures regarding
the complexities of its operations.
Extending the review period will enable
the NMS Stock ATS to amend its
disclosures, if appropriate, and allow
Commission staff to conduct a thorough
review of amendments to the initial
disclosures provided on the initial Form
ATS–N.
For the reasons given above, the
Commission is extending the review
period of the initial Form ATS–N
submitted by POSIT. Accordingly,
pursuant to Rule 304(a)(1)(iv)(B),
October 6, 2019 is the date by which the
Commission may declare the initial
Form ATS–N submitted by POSIT
ineffective.
By the Commission.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–11874 Filed 6–5–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85992; File No. 013–00110]
Initial Form ATS–N Filing; Notice of
Extension of Commission Review
Period
May 31, 2019.
On February 8, 2019, JPM–X filed an
initial Form ATS–N (‘‘Form ATS–N’’)
with the Securities and Exchange
Commission (‘‘Commission’’). Pursuant
to Rule 304 under the Securities and
Exchange Act of 1934 (‘‘Act’’), the
Commission may, after notice and an
opportunity for hearing, declare an
initial Form ATS–N ineffective no later
than 120 days from the date of filing
E:\FR\FM\06JNN1.SGM
06JNN1
Agencies
[Federal Register Volume 84, Number 109 (Thursday, June 6, 2019)]
[Notices]
[Pages 26457-26459]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11803]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85984; File No. SR-NSCC-2019-001]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change To Make a Clarification and Technical Changes to Addendum K
May 31, 2019.
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 May 29, 2019, National Securities Clearing Corporation (``NSCC'')
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 the clearing agency. NSCC filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(1) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(1).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change consists of amendments to Addendum K of
NSCC's Rules & Procedures (``Rules'') in order to make a clarification
and technical
[[Page 26458]]
changes, as described in greater detail below.\5\
---------------------------------------------------------------------------
\5\ Capitalized terms not defined herein are defined in the
Rules, available at https://www.dtcc.com/~/media/Files/Downloads/
legal/rules/nscc_rules.pdf.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. The clearing agency 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 proposed rule change would amend Addendum K to make a
clarification and technical changes, as described in greater detail
below. The proposed rule change is only clarifying the language of the
NSCC guaranty and, therefore, would not change any of the rights and
obligations of NSCC's Members.
Addendum K describes NSCC's trade guaranty to Members regarding
their CNS and balance order transactions. The proposed rule change
would clarify Addendum K by adding language that was inadvertently
deleted from the Rules in connection with the approval by the
Commission of rule filing SR-NSCC-2016-005 \6\ and notice of no
objection to advance notice SR-NSCC-2016-803.\7\ Specifically, the
proposed rule change would add ``, and, in either case,'' after clause
(ii) in the third sentence to make it clear that NSCC is guaranteeing
balance order transactions through the close of business on T+2,
whether submitted bilaterally or locked-in.
---------------------------------------------------------------------------
\6\ Securities Exchange Act Release No. 79598 (December 19,
2016), 81 FR 94462 (December 23, 2016) (SR-NSCC-2016-005).
\7\ Securities Exchange Act Release No. 79592 (December 19,
2016), 81 FR 94448 (December 23, 2016) (SR-NSCC-2016-803).
---------------------------------------------------------------------------
NSCC is also proposing to make the following technical changes to
Addendum K:
(1) Delete the word ``orders'' in the first sentence and replace it
with ``order'' to be consistent with the use of this phrase in the
Rules.
(2) Replace the word ``guarantee'' with ``guaranty'' in footnote 1
as well as in the fourth sentence to be consistent with the use of this
term in the Rules.
(3) Replace the reference to ``NSCC'' in footnote 1 with ``the
Corporation'' to be consistent with the use of this term in the Rules.
(4) Replace the reference to ``Options Clearing Corporation'' in
footnote 1 with ``The Options Clearing Corporation'' to reflect the
proper legal name of the entity referenced.
2. Statutory Basis
NSCC believes this proposal is consistent with the requirements of
the Act, and the rules and regulations thereunder applicable to a
registered clearing agency. Specifically, NSCC believes this proposal
is consistent with Section 17A(b)(3)(F) \8\ of the Act and Rule 17Ad-
22(e)(23)(i),\9\ as promulgated under the Act, for the reasons
described below.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1(b)(3)(F).
\9\ 17 CFR 240.17Ad-22(e)(23)(i).
---------------------------------------------------------------------------
Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of securities transactions.\10\ NSCC believes that the proposed rule
change would promote prompt and accurate clearance and settlement of
securities transactions. This is because the proposed rule change
would: (i) Clarify the provision regarding the NSCC guaranty by adding
language that reflects how the guaranty works and that was
inadvertently deleted in a previous rule filing and (ii) make technical
changes that would promote consistency in terminology usage and reflect
a proper legal entity name, all of which would ensure that the Rules
are clear and consistent. Having clear and consistent Rules would help
Members to better understand their rights and obligations regarding
NSCC's clearance and settlement services. NSCC believes that when
Members better understand their rights and obligations regarding NSCC's
clearance and settlement services, they can better act in accordance
with the Rules. NSCC believes that better enabling Members to comply
with the Rules would promote the prompt and accurate clearance and
settlement of securities transactions by NSCC. As such, NSCC believes
the proposed rule changes are consistent with Section 17A(b)(3)(F) of
the Act.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Rule 17Ad-22(e)(23)(i) under the Act requires NSCC to establish,
implement, maintain and enforce written policies and procedures
reasonably designed to publicly disclose all relevant rules and
material procedures.\11\ NSCC believes that the proposed rule change
would improve the clarity and the transparency of the Rules by
clarifying language and making the technical changes described in
detail above. NSCC believes that by enhancing the clarity and
transparency of the Rules (here in particular, the provisions
associated with the NSCC guaranty), NSCC would ensure that the Rules
disclose all relevant and material aspects of NSCC's guaranty. As such,
NSCC believes these proposed rule changes are consistent with Rule
17Ad-22(e)(23)(i) under the Act.
---------------------------------------------------------------------------
\11\ 17 CFR 240.17Ad-22(e)(23)(i).
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
NSCC does not believe the proposed rule changes would impact
competition. These changes are a clarification and technical changes
that would not change NSCC's current practices or affect Members'
rights and obligations. As such, NSCC believes these proposed rule
changes would not have any impact on competition.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
Written comments relating to this proposed rule change have not
been solicited or received. NSCC will notify the Commission of any
written comments received by NSCC.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \12\ and paragraph (f) of Rule 19b-4
thereunder.\13\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
[[Page 26459]]
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NSCC-2019-001 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to File Number SR-NSCC-2019-001. 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 website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference 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 the filing also will be available for inspection
and copying at the principal office of NSCC and on DTCC's website
(https://dtcc.com/legal/sec-rule-filings.aspx). All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NSCC-2019-001 and should be submitted on
or before June 27, 2019.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-11803 Filed 6-5-19; 8:45 am]
BILLING CODE 8011-01-P