76506 Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 

9 15 U.S.C. 78f. 

10 15 U.S.C. 78f(b)(4) and (5). 

11 15 U.S.C. 78s(b)(3)(A)(ii). 

12 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78s(b)(3)(A)(iii). 

3 17 CFR 240.19b–4(f)(4). 

The Exchange believes that the 

proposed change to the ISP, which will 

be equally applicable to all ISP 

participants, should be conducive to 

further enhancing the program’s fairness 

and equitability. 

2. Statutory Basis 

NASDAQ believes that the proposed 

rule change is consistent with the 

provisions of Section 6 of the Act,9 in 

general, and with Sections 6(b)(4) and 

6(b)(5) of the Act,10 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among members and issuers and 

other persons using any facility or 

system which NASDAQ operates or 

controls, and it is designed to promote 

just and equitable principles of trade, to 

remove impediments to and perfect the 

mechanism of a free and open market, 

and, in general, to protect investors and 

the public interest. The rule change 

enhances the Investor Support Program, 

which helps to raise investors’ 

confidence in the fairness of their 

transactions and benefit all investors by 

deepening NASDAQ’s liquidity pool, 

supporting the quality of price 

discovery, promoting market 

transparency and improving investor 

protection. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ does not believe that the 

proposed rule change will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

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.11 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 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 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–NASDAQ–2010–153 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–NASDAQ–2010–153. 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 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– 

NASDAQ–2010–153 and should be 

submitted on or before December 29, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30803 Filed 12–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63415; File No. SR–DTC– 

2010–16] 

Self-Regulatory Organizations; The 

Depository Trust Company; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating To 

Extending the End-of-Day Cutoff Time 

for Processing to The Federal Reserve 

and To Reflect Other Changes 

Requested by the Federal Reserve 

December 2, 2010. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

November 18, 2010, The Depository 

Trust Company (‘‘DTC’’) 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 DTC. DTC filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 2 and 

Rule 19b–4(f)(4) 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change will extend 

the end of day cutoff time for processing 

to the Federal Reserve and will reflect 

other changes requested by the Federal 

Reserve. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

DTC 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. DTC has prepared 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 76507 

4The term ‘‘Settling Bank’’ means a DTC 

Participant that is a bank or trust company subject 

to supervision or regulation pursuant to Federal or 

State banking laws and is a party to an effective 

DTC Settling Bank Agreement. 

5The Pledge service allows a pledgor Participant 

to pledge securities as collateral for a loan or for 

other purposes and also to request the release of 

pledged securities. Pledges and releases to a FRB 

are made free of value, which means that the 

securities are pledged on DTC books but the funds 

side of the related transaction is settled outside of 

DTC. 

6 DTC will modify the automated input file feed 

option with an error message when requests are 

submitted with the purpose pledge code 05- 

Daylight (Funds) Overdraft. The error message will 

let the user know to use pledge code 01 instead. 

7All times refer to Eastern Time. 

8 Depository institutions maintaining a deposit 

account at an FRB can make free pledges and 

release requests to the FRB. All DTC bank 

participants that are members of the FR are 

automatically eligible to pledge securities to FRBs 

that are DTC pledgees using the participant/nonparticipant pledge facility. DTC allows nonparticipants to pledge collateral to FRBs through 

DTC bank participants. 

9 In 2004, the Commission approved a filing in 

which all reclaims of valued Money Market 

Instrument (‘‘MMI’’) issuance transactions received 

by DTC after 2:30 p.m. are treated as ‘‘unmatched’’ 

and are subject to all original transaction-processing 

rules. Securities Exchange Act Release No. 50006 

(July 19, 2004), 69 FR 43042 (June 12, 2004) (File 

No. SR–DTC–04–03). In 2009, DTC enhanced its 

systems in order to provide Issuing Paying Agents 

(‘‘IPAs’’) with the ability to monitor their credit 

exposure to MMI issuers through an IPA Maturity 

Presentment ‘‘Pend’’ function. Securities Exchange 

Act Release No. 59695 (Apr. 2, 2009), 74 FR 7714 

(Feb. 19, 2009) (File No. SR–DTC–2009–02). In 

2010, DTC implemented a new function that allows 

DTC Participants to set a profile in the Participant 

Browser System so that they can request that excess 

funds be wired to their settling bank account at 

approximately 3:20 p.m. Securities Exchange Act 

Release No. 61922 (Apr. 15, 2010), 75 FR 21072 

(Apr. 22, 2010) (File No. SR–DTC–2010–07). DTC 

is updating its Service Guide to further reflect these 

changes. DTC is also updating the Settlement 

Service Guide to reflect proper contact information 

and provide definitions of certain terms. 

10 15 U.S.C. 78q–1. 

11Supra note 2. 

12Supra note 3. 

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 

DTC’s end-of-day settlement 

processing system controls and 

coordinates the settlement of Participant 

accounts and Settling Bank 4 accounts 

on DTC’s system. The settlement 

process occurs through the Fedwire 

system and is initiated when DTC posts 

final figures for Participants and Settling 

Banks. Recently, the Federal Reserve 

(‘‘FR’’) reviewed their current collateral 

processes and identified opportunities 

to improve the efficiency and timing of 

pledging collateral. To implement those 

changes, the FR has requested that DTC 

make revisions to its settlement 

schedule relating to the timing for 

Participants to pledge collateral to a 

Federal Reserve Bank (‘‘FRB’’).5

Additionally, the FR has requested that 

DTC consolidate the pledge reasons 

used for discount window and daylight 

overdraft payment system risk purposes. 

Specifically, the FR has requested that 

DTC remove the pledge code 05- 

Daylight (Funds) Overdraft to prevent 

the future use of this code.6 Instead, 

Participants will use the pledge code 01- 

Discount Window to submit pledges 

relating to daylight overdraft and 

relating to the discount window. 

Effective December 2, 2010, DTC will 

extend the end-of-day cutoff time for 

processing pledges and releases to/from 

the FR from 3 7 p.m. to 5 p.m. to 

facilitate late-day processing for 

depository institutions.8 Effective 

December 10, 2010, DTC will 

consolidate the pledge codes used for 

discount window and daylight overdraft 

payment system risk purposes into one 

code. The extended period for pledge 

affords greater flexibility in determining 

and securing liquidity needs which 

may, among other matters, enhance DTC 

settlement and generally help to 

minimize systemic risk. These 

accommodations will not adversely 

affect DTC’s settlement, including its 

processing schedule and other cutoffs. 

These changes will necessitate revisions 

to the existing DTC Settlement Service 

Guide and are attached to DTC’s 

proposed rule change as Exhibit 5. 

Additionally, DTC is making 

unrelated technical changes to the 

Settlement Service Guide to conform to 

certain rule changes that have 

previously been filed with the 

Commission.9 These changes include 

modifications to the Settlement 

Processing schedule as well as removing 

certain input methods that no longer 

exist and are detailed in the attached 

Exhibit 5. 

DTC states that the proposed rule 

change is consistent with the 

requirements of Section 17A of the 

Act 10 and the rules and regulations 

thereunder applicable to DTC because 

the proposed rule change will promote 

the prompt and accurate clearance and 

settlement of securities transactions 

because it aligns its cutoff time for 

processing pledges and releases to and 

from an FRB with the timing for the 

processing of pledges in the market 

generally. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

DTC 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 

DTC has not solicited or received 

written comments relating to the 

proposed rule change. DTC will notify 

the Commission of any written 

comments it receives. 

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 11 and Rule 

19b–4(f)(4) 12 because the proposed rule 

change effects a change in an existing 

service of DTC that (i) does not 

adversely affect the safeguarding of 

securities or funds in DTC’s custody or 

control or for which it is responsible 

and (ii) does not significantly affect the 

respective rights of DTC or persons 

using the service. 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. 

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 

No. SR–DTC–2010–16 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–DTC–2010–16. 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 


jlentini on DSKJ8SOYB1PROD with NOTICES
76508 Federal Register / Vol. 75, No. 235 / Wednesday, December 8, 2010 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 63072 

(October 8, 2010), 75 FR 64368 (October 19, 2010) 

(File No. SR–NYSEAmex–2010–97) (the ‘‘Block 

Rebate Filing’’). 

4 15 U.S.C. 78f(b). 

5 15 U.S.C. 78f(b)(4). 

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 DTC’s principal office and 

DTC’s Web site at http://www.dtc.org/ 

impNtc/mor/index.html. 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 No. SR–DTC–2010– 

16 and should be submitted on or before 

December 29, 2010. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–30721 Filed 12–7–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63413; File No. SR– 

NYSEAmex–2010–112] 

Self-Regulatory Organizations; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change by NYSE 

Amex LLC Amending the Exchange 

Price List With Respect to Nasdaq 

Securities Traded Pursuant to Unlisted 

Trading Privileges 

December 2, 2010. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that, on 

November 30, 2010, NYSE Amex LLC 

(‘‘NYSE Amex’’ 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 Exchange. 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 

2010 Price List for equities to amend the 

fees charged for taking liquidity in 

Nasdaq securities traded pursuant to 

unlisted trading privileges and to 

change the minimum size requirements 

for larger displayed orders in trades 

above $5.00 to receive the enhanced 

rebate in lieu of the standard rebate for 

such securities. The amended pricing 

will become operative on December 1, 

2010. The text of the proposed rule 

change is available at the Exchange’s 

principal office, 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend its 

2010 Price List for equities to modify 

the fees charged to market participants, 

Supplemental Liquidity Providers 

(‘‘SLPs’’) and Designated Market Makers 

(‘‘DMMs’’) for taking liquidity in Nasdaq 

securities traded pursuant to unlisted 

trading privileges whose share price is 

$1.00 or more. 

Currently, market participants, SLPs 

and DMMs are charged a fee of $0.0023 

per share for orders in Nasdaq securities 

traded pursuant to unlisted trading 

privileges that take liquidity. Under the 

proposal, the fee will be changed to 

$0.0027 per share for orders that take 

liquidity. 

In a rule filing on October 1, 2010,3

the Exchange adopted a block rebate of 

$0.0036 per share for executions of 

displayed liquidity to all market 

participants and SLPs that provide 

liquidity in orders in Nasdaq securities 

traded pursuant to unlisted trading 

privileges that originally display a 

minimum of 5,000 shares with a trading 

price of at least $5.00 per share, for as 

long as the order is not cancelled in 

amount that would reduce the original 

displayed amount below 5,000 shares. 

The Exchange proposes to reduce these 

minimum displayed size requirements 

from 5,000 shares to 2,000 shares. 

In the Block Rebate Filing, the 

Exchange also adopted a block rebate for 

DMMs of $0.0036 per share in Nasdaq 

securities traded pursuant to unlisted 

trading privileges for executions of the 

displayed portions of s-Quotes that 

provide liquidity and display 5,000 

shares or more at the time of execution 

with a trading price of at least $5.00 per 

share. The Exchange proposes to reduce 

this minimum displayed size 

requirement from 5,000 shares to 2,000 

shares. 

These changes are intended to become 

operative for all transactions beginning 

December 1, 2010. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),4 in general, and Section 6(b)(4) 

of the Act,5 in particular, in that it is 

designed to provide for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members and 

other persons using its facilities. The 

Exchange believes that the proposal 

does not constitute an inequitable 

allocation of fees, as all similarly 

situated member organizations will be 

charged the same amount and access to 

the Exchange’s market is offered on fair 

and non-discriminatory terms. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. 


jlentini on DSKJ8SOYB1PROD with NOTICES