[Federal Register Volume 76, Number 201 (Tuesday, October 18, 2011)]
[Notices]
[Pages 64403-64404]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-26888]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65539; File No. SR-FICC-2011-07]
Self-Regulatory Organizations; The Fixed Income Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Make Technical Corrections to the Schedule of
Timeframes, GCF Schedule of Timeframes, and Fee Structure in the GSD
Rules
October 12, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on September 30, 2011, the
Fixed Income Clearing Corporation (``FICC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change
described in Items I and II below, which Items have been prepared
primarily by FICC. FICC filed the proposal pursuant to Section
19(b)(3)(A)(ii) of the Act,\2\ and Rule 19b-4(f)(2) \3\ and Rule 19b-
4(f)(4) \4\ thereunder so that the proposal was effective upon filing
with the Commission. The Commission is publishing this notice to
solicit comments on the rule change from interested parties.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(ii).
\3\ 17 CFR 240.19b-4(f)(2).
\4\ 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will make technical corrections to the
Schedule of Timeframes, GCF Schedule of Timeframes, and Fee Structure
in the GSD Rules.
II. Self-Regulatory Organization'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 in
Item IV below. FICC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\5\
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\5\ The Commission has modified the text of the summaries
prepared by FICC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of this filing is to make technical corrections to the
Schedule of Timeframes, the GCF Schedule of Timeframes, and the Fee
Structure as described below.
1. Schedule of Timeframes
The GSD Schedule of Timeframes is being updated to incorporate
timeframes relating to the intraday collection of funds-only settlement
and Clearing Fund amounts that were approved in connection with the SR-
FICC-2010-09 rule filing.\6\ The Schedule of Timeframes is also being
revised to make certain other technical changes.
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\6\ Securities Exchange Act Release No. 34-63986 (February 28,
2011), 76 FR 12144 (March 4, 2011).
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2. Schedule of GCF Timeframes
The Schedule of GCF Timeframes is being corrected to reflect that
GCF Repo[reg] trading is available to GCF brokers at 7 a.m.
3. Fee Structure Corrections
The following corrections are made to reflect fees that members are
currently being charged:
Subsection A ``Trade Submission'' under ``Trade Comparison Fees''
currently describes trade submissions as including a submission of a
side of a trade and a submission of a Repo Transaction. This is being
corrected to make clear that Trade Submissions also include demand and
bilateral submissions.
Subsection D ``Modifications and Cancellations'' under ``Trade
Comparison Fees'' currently states that the charge to a Member for the
entry of a request to modify or cancel a side of a GCF Repo Transaction
is 5 cents per such request. This is being corrected to state that the
charge is 5 cents per 50 million of par value.
The fee provided under Subsection E ``Demand and Locked-In Trade
Data'' under ``Trade Comparison Fees'' currently states that fees for
data received on a demand or locked-in basis related to a side of a
trade or a Repo Transaction is 16 cents per 50 million increment. This
is being corrected to state that this fee only applies to a Locked-In
Trade Source related to a side of a trade, to clarify that the 50
million is of par value, and to delete the dollar sign ($) reference to
par value.
Under ``Netting Fee and Charges,'' with respect to the ``Netting
Fee'' (1) the references to ``par value'' incorrectly include a dollar
sign ($); and (2) the Fail Deliver Obligation and Fail Receive
Obligation currently states that the fee equals the sum of (i) $0.16
and (ii) $0.012 per $1 million of par value. This is being corrected to
state that the fee equals the sum of (i) $0.18 and $0.018 per 1 million
of par value. Under ``Auction Takedown Process'' of this same section,
the fee in connection with locked in trades is clarified to state that
the fee is $.50 per 50 million of par value increment.
FICC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \7\ and the rules and
regulations thereunder applicable to FICC because it facilitates the
prompt and accurate clearance and settlement of securities by ensuring
that FICC rules are consistent and accurate.
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\7\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization'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) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Written comments relating to the proposed rule change have not been
solicited or received. FICC will notify the Commission of any written
comments received by FICC.
[[Page 64404]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)(ii) of the Act,\8\ and Rule 19b-4(f)(2)
\9\ and Rule 19b-4(f)(4) \10\ thereunder. 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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
\10\ 17 CFR 240.19b-4(f)(4).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-FICC-2011-07 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-FICC-2011-07. 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 (http://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
a.m. and 3 p.m. Copies of such filings also will be available for
inspection and copying at the principal office of FICC and on FICC's
Web site at http://www.dtcc.com/downloads/legal/rule_filings/2011/ficc/2011-07-v2.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-2011-07 and should be submitted on or before November 8, 2011.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26888 Filed 10-17-11; 8:45 am]
BILLING CODE 8011-01-P