[Federal Register Volume 76, Number 3 (Wednesday, January 5, 2011)]
[Notices]
[Pages 596-598]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-33252]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63612; File No. SR-FICC-2010-10]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Relating to Modifications to the Fee Schedule
December 29, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 21, 2010, the
Fixed Income Clearing Corporation (``FICC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II, which Items have been prepared primarily
by FICC. FICC filed the proposed rule change pursuant to Section
19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) \3\ thereunder so
that the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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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).
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[[Page 597]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of this filing is to modify participant fees. The fee
changes are effective as of January 1, 2011.
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 such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Government Securities Division (``GSD'')
(a) The fee structure for submission of a side of a trade and
submission of a Repo Transaction is revised to reflect the following:
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Current fee 2011 proposed fee
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Up to 50,000 submissions per $0.21 per item.... $0.27 per item.
month.
50,001 to 100,000 submissions $0.12 per item.... $0.15 per item.
per month.
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(b) The following Netting Fee and Charges have been revised as
follows:
------------------------------------------------------------------------
Current fee 2011 proposed fee
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1. For each side of a Compared (i) $0.16; and (i) $0.18; and
Trade, other than a Repo (ii) $0.016 per $1 (ii) $0.018 per $1
Transaction, that is netted, a million of par million of par
fee equaling the sum (in value.. value.
addition to the comparison fee)
of:
2. For each Start Leg or Close (i) $0.16; and (i) $0.18; and
Leg of a Repo Transaction other (ii) $0.016 per $1 (ii) $0.018 per $1
than a GCF Repo Transaction million of par million of par
that is netted, a fee equaling value.. value.
the sum (in addition to the
comparison fee) of:
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(c) Currently, the charge to a member for the processing and
reporting by the GSD of a GCF Repo[supreg] transaction is $.05 per
million gross dollar amount of such transaction with a minimum charge
of $2.50. The current charge makes no distinction between inter-dealer
broker members and non-inter-dealer broker members. The proposed new
charge will apply different charges to inter-dealer broker members and
non-inter-dealer broker members. Specifically, the charge for non-
inter-dealer broker members will remain unchanged at $.05 per million
with a minimum charge of $2.50. The charge for inter-dealer brokers
will be $.025 per million with a minimum charge of $1.25.
(d) The charge for each Deliver Obligation and Receive Obligation
created as a result of the netting process is a fee of $0.10 per $1
million of par value. This fee is being increased to $0.15 per $1
million.
(e) Repo Transaction Processing Fee.
a. For a term Repo Transaction other than a GCF Repo Transaction
that has been compared and netted, but which has not yet settled, a fee
calculated as follows:
i. For Repo Brokers (as defined in subsection III.H of the GSD Fee
Structure) with respect to their brokered Repo Transaction activity, a
.010 basis point charge (i.e., one hundredth of a basis point) applied
to the gross dollar amount of each such Repo Transaction is currently
in effect. This will be increased to 0.0175 basis point charge (i.e.
one and three quarter hundredth of a basis point) and
ii. For all other Netting Members, as well as Repo Brokers with
respect to their non-brokered Repo Transaction activity, a .020 basis
point charge (i.e., two hundredths of a basis point) applied to the
gross dollar amount of each such Repo Transaction is currently in
effect. This will be increased to a 0.025 basis point charge (i.e. two
and a half hundredth of a basis point).
b. For a GCF Repo Transaction that has been compared and netted,
but which has not yet settled, a fee calculated as follows:
i. For Repo Brokers acting as GCF-Authorized-Inter-Dealer Brokers,
a .010 basis point charge (i.e., one hundredth of a basis point)
applied to the gross dollar amount of such GCF Repo Transaction. This
will be increased to 0.0175 basis point charge (i.e., one and three
quarter hundredths of a basis point) applied to the gross dollar amount
of such GCF Repo Transaction and
ii. For all other Netting Members, a .020 basis point charge (i.e.,
two hundredths of a basis point) applied to the gross dollar amount of
such GCF Repo Transaction. This will be increased to 0.025 basis point
charge (i.e., two and one half hundredths of a basis point) applied to
the gross dollar amount of such GCF Repo Transaction.
2. Mortgage Backed Securities Division (``MBSC'') Fee Changes
The MBSD fee structure is revised to reflect the following:
------------------------------------------------------------------------
Current old fee 2011 proposed fee
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Par value Par value
millions millions
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Up to 2,500 trades per month.... $1.44 $1.68
2,501 to 5,000 trades per month. 1.32 1.54
[[Page 598]]
5,001 to 7,500 trades per month. 1.19 1.39
7,501 to 10,000 trades per month 1.11 1.30
10,001 to 12,500 trades per 0.98 1.15
month..........................
12,501 and over trades per month 0.85 0.99
------------------------------------------------------------------------
FICC states that the proposed rule change is consistent with the
requirements of Section 17A of the Act \4\ and the rules and
regulations thereunder because it updates FICC's fee schedule and
provides for the equitable allocation of fees among its participants.
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\4\ 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
FICC has not solicited or received written comments relating to the
proposed rule change. FICC will notify the Commission of any comments
it receives.
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)(ii) of the Act \5\ and Rule 19b-4(f)(2) \6\ because the
proposed rule change establishes or changes a due, fee, or other charge
applicable only to a member. 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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\5\ Supra note 2.
\6\ Supra note 3.
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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 e-mail to [email protected]. Please include
File No. SR-FICC-2010-10 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 No. SR-FICC-2010-10. This file
number should be included on the subject line if e-mail 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 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
a.m. and 3 p.m. Copies of such filings also will be available for
inspection and copying at FICC's principal office and on FICC's Web
site at http://www.dtcc.com/legal/rule_filings/ficc/2010.php. 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
submission should refer to File No. SR-FICC-2010-10 and should be
submitted on or before January 26, 2011.
For the Commission by the Division of Trading and Markets
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-33252 Filed 1-4-11; 8:45 am]
BILLING CODE 8011-01-P