[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Notices]
[Pages 13683-13684]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5773]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64053; File No. SR-FICC-2011-01]
Self-Regulatory Organizations; The Fixed Income Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change To Notify Participants That the Mortgage Backed Securities
Division Intends To Move the Time at Which It Runs Its Daily Morning
Pass
March 8, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 2, 2011, 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 below, which items have been prepared
primarily by FICC. The Commission is publishing this notice to solicit
comments from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to notify participants
that the Mortgage Backed Securities Division (``MBSD'') intends to move
the time at which it runs its daily morning pass (also referred to as
the ``AM Pass'') from 10:30 a.m. to 2 p.m. (EST).
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.\2\
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\2\ 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 notify participants that MBSD
intends to move the time at which it runs its daily morning pass from
10:30 a.m. to 2 p.m. (EST).\3\ The proposed change to 2 p.m. for the
morning pass will allow more trades to be included into the TBA Net and
therefore will assist in reducing the amount of fails in the market in
addition to reducing the related operational risk. The above change is
being made at the request of The Securities Industry and Financial
Markets Association (``SIFMA'') MBS Operations Committee. In addition,
MBSD reviewed the potential change with member firms not represented on
the SIFMA Committee, and no objections were raised.
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\3\ MBSD also executes an evening pass (also referred to as the
``PM Pass'') at 8 p.m. (EST) that will remain unchanged. On days
where MBSD executes its TBA Netting cycle, it immediately follows
the completion of the morning pass.
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The effective date of this change will be announced to MBSD
participants by Important Notice.
FICC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \4\ and the rules and
regulations thereunder applicable to FICC because it should provide for
the prompt and accurate clearance and settlement of securities
transactions by including a greater proportion of transactions in the
TBA netting cycle. Additionally, the proposed rule change should result
in fewer fails, and reduced operational risk.
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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 on 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
No written comments relating to the proposed rule change have 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
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\
thereunder because the proposed rule effects a change in an existing
service that (i) does not adversely affect the safeguarding of
securities or funds in the custody or control of FICC or for which it
is responsible and (ii) does not significantly affect the respective
rights or obligations of FICC or persons using the service. At any time
within sixty days of the filing of such 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\ 15 U.S.C. 78s(b)(3)(A)(iii).
\6\ 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 e-mail to [email protected]. Please include
File Number SR-FICC-2011-01 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-2011-01. 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
[[Page 13684]]
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
changes 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 Section, 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.ficc.com.
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-2011-01
and should be submitted on or before April 4, 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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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5773 Filed 3-11-11; 8:45 am]
BILLING CODE 8011-01-P