Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 20425 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(6). When filing a proposed 

rule change pursuant to Rule 19b–4(f)(6) under the 

Act, an exchange is required to give the 

Commission written notice of its intent to file the 

proposed rule change, along with a brief description 

and text of the proposed rule change, at least five 

business days prior to the date of filing of the 

proposed rule change, or such shorter time as 

designated by the Commission. The Commission 

notes that the Exchange has satisfied this 

requirement. 

11 17 CFR 240.19b–4(f)(6)(iii). 

12 Id. 

13For the purposes only of waiving the operative 

delay of this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

14 17 CFR 200.30–3(a)(12). 

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

that it seeks to assure fair competition 

among brokers and dealers and among 

exchange markets. The Exchange 

believes that the pilot program promotes 

just and equitable principles of trade in 

that it promotes transparency and 

uniformity across markets concerning 

decisions to pause trading in a security 

when there are significant price 

movements. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change imposes any 

burden on competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate if 

consistent with the protection of 

investors and the public interest, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 9 and Rule 

19b–4(f)(6) thereunder.10

A proposed rule change filed under 

Rule 19b–4(f)(6) normally may not 

become operative prior to 30 days after 

the date of filing.11 However, Rule 

19b–4(f)(6) 12 permits the Commission 

to designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest. The 

Exchange has requested that the 

Commission waive the 30-day operative 

delay. 

The Commission has considered the 

Exchange’s request to waive the 30-day 

operative delay. The Commission 

believes that waiving the 30-day 

operative delay is consistent with the 

protection of investors and the public 

interest, as it will allow the pilot 

program to continue uninterrupted, 

thereby avoiding the investor confusion 

that could result from a temporary 

interruption in the pilot program.13 For 

this reason, the Commission designates 

the proposed rule change to be operative 

upon filing. 

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended, 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–BATS–2011–011 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–BATS–2011–011. 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 filing 

also will be available for inspection and 

copying at the principal offices 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–BATS– 

2011–011, and should be submitted on 

or before May 3, 2011 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8599 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64196; File No. SR–NSCC– 

2010–15] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Order Approving 

Proposed Rule Change Relating to 

Establishing an Automated Service for 

the Processing of Transfers, 

Replacements, and Exchanges of 

Insurance and Retirement Products 

April 6, 2011. 

I. Introduction 

On November 18, 2010, the National 

Securities Clearing Corporation 

(‘‘NSCC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (the ‘‘Act’’).1 The 

proposed rule change allows NSCC to 

add a new automated service to process 

transfers, replacements, and exchanges 

of insurance and retirement products 

through NSCC’s Insurance and 

Retirement Processing Service (‘‘IPS’’). 

The proposed rule change was 

published for comment in the Federal 


srobinson on DSKHWCL6B1PROD with NOTICES
20426 Federal Register / Vol. 76, No. 70 / Tuesday, April 12, 2011 / Notices 

2Securities Exchange Act Release No. 63368 

(Nov. 23, 2010), 75 FR 74117. 3 15 U.S.C. 78q–1(b)(3)(F). 

4 15 U.S.C. 78q–1. 

5 15 U.S.C. 78s(b)(2). 

6 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). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A)(ii). 

4 17 CFR 240.19b–4(f)(2). 

Register on November 30, 2010.2 No 

comment letters were received. This 

order approves the proposed rule 

change. 

II. Description of the Proposal 

The proposed rule change will enable 

NSCC to offer a new automated service 

for the transfer, replacement, or 

exchange (collectively referred to as a 

‘‘Replacement’’) of an existing insurance 

contract that is eligible for NSCC’s IPS. 

Specifically, NSCC will add new 

Section 11 to Rule 57 (Insurance and 

Retirement Processing Services) that 

will centralize and automate 

Replacement processing and will 

decrease the administrative burden on 

and risk to NSCC Members, Insurance 

Carrier/Retirement Service Members, 

Mutual Fund/Insurance Services 

Members, and Data Services Only 

Members. Prior to this rule change, the 

Replacement process was not conducted 

through a centralized or automated 

process and requires extensive manual 

processing of paper forms and other 

documents. The insurance industry 

utilized Transfer of Assets forms, 1035 

Exchange Forms, or other similar 

paperwork (collectively referred to as 

‘‘TOA’’) to document the request and the 

authorization for a Replacement. 

Under the new service, an Insurance 

Carrier/Retirement Services Member 

will be able to initiate a Replacement 

(‘‘Receiving Carrier’’) by submitting an 

instruction to NSCC to process a 

Replacement (‘‘Request for 

Replacement’’). NSCC will then transmit 

the Request for Replacement to the 

designated Insurance Carrier/Retirement 

Services Member (‘‘Delivering Carrier’’). 

The Delivery Member will have to 

confirm, reject, or request modification 

to the Request for Replacement in the 

format and by such time as established 

by NSCC. NSCC will delete from the IPS 

Requests for Replacement that are not 

confirmed or rejected. The IPS will also 

incorporate and will automate the 

settlement of confirmed Replacements 

into NSCC’s existing IPS settlement 

process. 

Also under the new Section 11, the 

Delivering Carrier will waive the 

obligation of the Receiving Carrier to 

submit a signed physical copy of the 

TOA unless specifically required by 

state or local law. The transfer of any 

physical documents related to 

Replacements that are required under 

state law would continue to be 

transferred outside of NSCC. It will be 

the sole obligation of the Insurance 

Carrier/Retirement Services Members 

involved in the Replacement to confirm 

that all legal requirements, including 

any requirement to obtain a signed 

physical copy of the TOA imposed by 

applicable State or local law, are 

satisfied prior to confirming a Request 

for Replacement. The Replacement 

service will permit the transfer of 

documentation as an attachment to the 

Request for Replacement but this will 

not be a requirement to utilize the 

Replacement service. The waiver of the 

obligation to submit signed physical 

documents is intended to improve the 

orderly processing of Replacements. 

Finally, NSCC will update the Fee 

Schedule to incorporate the fees 

associated with processing a Request for 

Replacement. The fee associated with a 

Request for Replacement, including 

submitting incremental replacement 

status messages and money settlement, 

will be $5.00 per Request for 

Replacement. The cost will be divided 

between the carriers associated with the 

transaction with the Receiving Carrier 

responsible for $3.75 per transaction, 

which is three-fourths of the cost of the 

Replacement service, and the Delivering 

Carrier responsible for the remaining 

$1.25, which is one-fourth of the cost. 

The fee associated with obtaining the 

status of a pending Request for 

Replacement, including incremental 

statuses, will be $1.00 per pending 

status request. The cost will be divided 

evenly between the Receiving Carrier 

and the Distributor, each of which will 

be responsible for paying a fee of $0.50. 

Members will be advised of the 

specific implementation date through 

the issuance of an NSCC Important 

Notice. 

III. Discussion 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules thereunder applicable to NSCC. In 

particular, the Commission finds that 

the proposal is consistent with Section 

17A(b)(3)(F) of the Act,3 which requires, 

among other things, that the rules of a 

registered clearing agency are designed 

to promote the prompt and accurate 

clearance and settlement of securities 

transactions. NSCC’s new Replacement 

service is designed to process 

Replacements in a more timely and 

efficient manner by reducing manual 

errors, lowering costs, and providing a 

uniform platform for Replacements 

processing. In addition, the new service 

should increase the speed of processing 

Replacements through the use of 

automation, which should also decrease 

NSCC’s operational risk posed by 

processing paper documentation. 

Accordingly, NSCC’s proposal should 

promote 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 4 and 

the rules and regulations thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,5 that the 

proposed rule change (File No. SR– 

NSCC–2010–15) be and hereby is 

approved.6

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8585 Filed 4–11–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64198; File No. SR–BX– 

2011–020] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NASDAQ 

OMX BX, Inc. To Amend the Fee 

Schedule of the Boston Options 

Exchange Facility 

April 6, 2011. 

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 March 31, 

2011, NASDAQ OMX BX, Inc. (the 

‘‘Exchange’’) 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 

by the self-regulatory organization. The 

Exchange filed the proposed rule change 

pursuant to Section 19(b)(3)(A)(ii) of the 

Act,3 and Rule 19b–4(f)(2) thereunder,4

which renders the proposal effective 

upon filing with the Commission. The 

Commission is publishing this notice to 


srobinson on DSKHWCL6B1PROD with NOTICES