Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 2737 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 62822 

(Sept. 20, 2010), 75 FR 57318. 

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 rulecomments@sec.gov. Please include File 

Number SR–C2–2011–002 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–C2–2011–002. 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 the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. 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–C2– 

2011–002 and should be submitted on 

or before February 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–680 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63668; File No. SR–NSCC– 

2010–09] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Order Approving 

Proposed Rule Change Regarding the 

Creation of a Universal Trade Capture 

Application and Automated Special 

Representative Facility 

January 6, 2011. 

I. Introduction 

On August 30, 2010, the National 

Securities Clearing Corporation 

(‘‘NSCC’’) filed proposed rule change 

SR–NSCC–2010–09 with the Securities 

and Exchange Commission 

(‘‘Commission’’) pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder.2 On September 9, 2010, 

NSCC filed an amendment to the 

proposed rule change. The proposed 

rule change modifies NSCC’s rules and 

procedures to create a new Universal 

Trade Capture (‘‘UTC’’) application and 

an automated Special Representative 

facility. The proposed rule change was 

published for comment in the Federal 

Register on September 20, 2010.3 No 

comment letters were received. This 

order approves the proposed rule 

change. 

II. Description of the Proposal 

A. Uniform Trade Capture 

Pursuant to the proposed rule change, 

NSCC is replacing its trade capture 

applications, such as the Trade 

Comparison and Recording Operation, 

with the new UTC application that is 

designed to standardize, streamline, 

consolidate, and modernize NSCC’s 

system for capturing securities 

transaction information for clearance 

and settlement at NSCC. 

The UTC application will accept and 

process a common input record from all 

securities marketplaces. It will receive 

and report data from members and selfregulatory organizations (‘‘SROs’’) in 

both real-time and intraday batch 

submissions to and. NSCC will convert 

the existing input format to the new 

UTC input record format, which will 

enable the UTC to provide members and 

SROs with their trade output in the 

format of their choice (new or old). UTC 

will also replace all current locked-in 

over-the-counter (‘‘OTC’’) and listed 

trade capture applications with one 

central, real-time validation and 

reporting process and will have the 

capability to accept, reject, validate, 

process, and send contract output to 

members in real-time. Members will 

only have to support one standardized 

input and output format. 

B. Correspondent Clearing Service 

Prior to this rule change, NSCC’s rules 

provided that its Correspondent 

Clearing Service could only be used to: 

(a) Accommodate a member with 

multiple affiliate accounts that wishes 

to move a position resulting from an 

‘‘original trade’’ in the process of 

clearance from one affiliate account to 

another or (b) accommodate a member 

that relies on its Special Representative 

to execute a trade in a market that the 

member is precluded due to 

membership requirements (e.g., 

membership requirement for access to 

markets) or applicable regulation in 

order to enable the resulting position to 

be moved from the Special 

Representative to that member. 

Under this rule change, NSCC will 

provide that the Correspondent Clearing 

Service may be utilized by members to 

accommodate a member that relies on 

its Special Representative to execute a 

trade in any market regardless of 

whether that member maintains direct 

access to that market to enable the 

resulting position to be moved from the 

Special Representative to that member. 

C. Creation of an Automated Special 

Representative Facility 

To assist members control and 

monitor their Special Representative 

and Qualified Special Representative 

relationships, NSCC is creating an 

automated, online, secure facility by 

which members themselves may 

establish, monitor, and maintain these 

relationships. Both the Special 

Representative Member and the 

Correspondent Member will have to 

submit matching instructions within the 

facility in order for the relationship to 

be established. Either party will be able 

to submit an entry to retire the 

relationship. 

Members will be reminded, through 

formatting within the facility, of their 

existing and unchanged obligations 

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2738 Federal Register / Vol. 76, No. 10 / Friday, January 14, 2011 / Notices 

4 15 U.S.C. 78q–1(b)(3)(F). 

5 15 U.S.C. 78q–1. 

6 15 U.S.C. 78s(b)(2). 

7 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition and capital formation. 15 

U.S.C. 78c(f). 

8 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

under NSCC’s rules with respect to 

utilizing these services—namely, that by 

establishing the relationship within the 

facility both members will continue to 

be bound by NSCC’s rules, the 

Correspondent is bound by the details of 

all transactions submitted on their 

behalf by the Qualified Special 

Representative or Special 

Representative, and any errors or 

omissions or disputes relating to such 

relationships and related transactions 

must be resolved directly between the 

parties. 

The establishment of relationships 

through the automated facility will meet 

the written notice requirements for such 

services as otherwise set forth within 

NSCC’s rules and procedures. Members 

will no longer be required to submit 

signed forms to NSCC for these 

processes. 

D. Implementation Time Frame 

NSCC will implement many of the 

changes described above by January 31, 

2011. 

With respect to UTC changes and to 

support the migration period, NSCC will 

provide a conversion process to support 

those markets that are not yet ready to 

submit transaction data in the new 

common input format (i.e., NSCC will 

accept data in the old format and 

convert data into the new UTC format). 

The conversion process will enable 

NSCC to offer members and SROs the 

new output format regardless of whether 

the market has converted to the new 

standard. UTC will continue to support 

all existing interfaces with markets, 

members, and SROs with respect to 

trade input and output. 

To provide maximum flexibility in 

allowing firms to migrate to the new 

input and output formats according to 

their own schedules, NSCC will 

continue to support all existing 

interfaces with markets, members, SROs 

and regulatory agencies for a period of 

time after UTC is implemented. 

Finally, NSCC will establish a plan for 

the retirement of all legacy input and 

output formats and by the end of the 

first quarter of 2012 will reassess the 

status of those firms utilizing legacy 

formats. At that time, NSCC will work 

with any members, SROs, and 

regulatory agencies that have not yet 

converted from legacy reporting, thereby 

affording such firms sufficient lead time 

for migration. 

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to NSCC. In particular, the 

Commission finds that the proposal is 

consistent with Section 17A(b)(3)(F) of 

the Act,4 which requires that the rules 

of a registered clearing agency are 

designed to, among other things, remove 

impediments to the perfection of the 

mechanism of a national system for the 

prompt and accurate clearance and 

settlement of securities transactions. 

NSCC’s consolidation of its trade 

capture and reporting applications are 

designed to remediate certain 

operational inefficiencies associated 

with providing and maintaining 

redundant transaction submission and 

reporting systems that were created to 

service different transaction sources. As 

securities marketplaces have ceased 

providing clearance and settlement 

services for their members and as those 

members have ultimately become direct 

NSCC members or have entered clearing 

arrangements with other NSCC 

members, there is little operational basis 

for NSCC to continue to service different 

data formats and systems. Accordingly, 

consolidating its systems to receive and 

report transaction details while 

providing new automated services to 

assist NSCC members maintain their 

correspondent and Special 

Representative relationships should 

help remove certain impediments to the 

perfection of the mechanism of a 

national system for the prompt and 

accurate clearance and settlement of 

securities transactions. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act and in 

particular Section 17A of the Act 5 and 

the rules and regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,6 that the 

proposed rule change (File No. SR– 

NSCC–2010–09) be and hereby is 

approved.7

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–666 Filed 1–13–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63669; File No. SR–NYSE– 

2011–01] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend the 

Exchange Price List 

January 6, 2011. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

3, 2011, New York Stock Exchange LLC 

(‘‘NYSE’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

2011 Price List (‘‘Price List’’) for equity 

transactions in stocks with a per share 

stock price less than $1.00 to provide 

that the equity per share charge for all 

other transactions when taking liquidity 

from the Exchange per transaction will 

be the lesser of (i) 0.3% of the total 

dollar value of the transaction and (ii) 

$0.0023 per share. The amended pricing 

will take effect on January 3, 2011. The 

text of the proposed rule change is 

available at the Exchange, at http:// 

www.nyse.com, at the Commission’s 

Public Reference Room, and on the 

Commission’s Web site at http:// 

www.sec.gov. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

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