Federal Register / Vol. 74, No. 151 / Friday, August 7, 2009 / Notices 39721 

7 17 CFR 240.19b–4(f)(6). 

8 Id. 

9For purposes only of waiving the 30-day preoperative period, the Commission has considered 

the proposed rule’s impact on efficiency, 

competition and capital formation. 15 U.S.C. 78c(f). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

4For purposes of the proposed rule, the term 

‘‘OTC Equity Security’’ is defined in FINRA Rule 

6420. 

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.7 However, Rule 19b– 

4(f)(6) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest.8

NASDAQ has requested that the 

Commission waive the 30-day operative 

delay. The Exchange believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest in that 

it would enable the Exchange to 

continue to assess identical fees without 

disruption to the marketplace. The 

Commission believes such waiver is 

consistent with the protection of 

investors and the public interest 

because it presents no new issues and 

would allow the Linkage Fee Pilot 

Program to continue operating without 

interruption. For this reason, the 

Commission designates the proposal to 

be operative upon filing with the 

Commission.9

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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 

Number SR–NASDAQ–2009–073 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–2009–073. 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 inspection and copying 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–2009–073 and 

should be submitted on or before 

August 28, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18975 Filed 8–6–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60414; File No. SR–FINRA– 

2009–051] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to the Use of 

Multiple Market Participant Symbols 

When Quoting or Trading OTC Equity 

Securities 

July 31, 2009. 

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 July 23, 

2009, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) (f/k/a 

National Association of Securities 

Dealers, Inc. (‘‘NASD’’)) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II below, which Items have been 

prepared by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by 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 

FINRA is proposing to adopt FINRA 

Rule 6480 on a pilot basis to address the 

use of multiple Market Participant 

Symbols (‘‘MPIDs’’) when quoting or 

trading OTC Equity Securities.4

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

FINRA 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. FINRA 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. Purpose 

FINRA has two rules governing the 

use of multiple MPIDs on FINRA 

facilities: Rule 6160 (Multiple MPIDs for 

Trade Reporting Facility Participants) 

and Rule 6170 (Primary and Additional 

MPIDs for Alternative Display Facility 

Participants). The proposed rule change 

would adopt, on a pilot basis, a rule for 

the use of multiple MPIDs when quoting 

OTC Equity Securities or reporting 


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39722 Federal Register / Vol. 74, No. 151 / Friday, August 7, 2009 / Notices 

5Rule 6160 was approved by the Commission in 

2006 on a pilot basis. See Securities Exchange Act 

Release No. 54715 (November 6, 2006), 71 FR 66354 

(November 14, 2006); see also Securities Exchange 

Act Release No. 54715A (November 14, 2006), 71 

FR 67183 (November 20, 2006). The pilot period 

has been extended several times since the rule was 

originally adopted and currently expires on January 

29, 2010. See Securities Exchange Act Release No. 

59183 (December 30, 2008), 74 FR 842 (January 8, 

2009); Securities Exchange Act Release No. 57217 

(January 28, 2008), 73 FR 6234 (February 1, 2008); 

Securities Exchange Act Release No. 55206 (January 

31, 2007), 72 FR 5479 (February 6, 2007). 

6 15 U.S.C. 78o–3(b)(6). 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

provide the Commission with 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. 

FINRA has met this requirement. 

9See supra note 5. 

10For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

trades in such securities to the OTC 

Reporting Facility. The use of multiple 

MPIDs is currently permitted with 

respect to FINRA Trade Reporting 

Facilities and the Alternative Display 

Facility, and firms have requested that 

FINRA extend the use of multiple 

MPIDs to the OTC market so that 

members can use multiple MPIDs for a 

variety of back-office purposes that 

would otherwise not be possible—for 

example, establishing separate clearing 

relationships for different types of 

securities (e.g., foreign and domestic 

securities). As is the case with respect 

to the market for exchange-listed 

securities, FINRA believes that there are 

legitimate business reasons for members 

to maintain multiple MPIDs in the OTC 

market and proposes to establish, on a 

pilot basis, a system whereby members 

can request and be granted multiple 

MPIDs for use in quoting and trading 

OTC Equity Securities. The proposed 

rule is substantially similar to Rule 6160 

and, like that rule, would expire on 

January 29, 2010, unless extended.5

Like Rule 6160, proposed Rule 6480 

provides that any member that wishes to 

use more than one MPID for purposes of 

quoting an OTC Equity Security or 

reporting trades to the OTC Reporting 

Facility must submit a written request 

to, and obtain approval from, FINRA 

Operations for such additional MPIDs. 

The rule also states that a member that 

posts a quotation in an OTC Equity 

Security and reports to a FINRA system 

a trade resulting from such posted 

quotation must utilize the same MPID 

for reporting purposes. In addition, 

Supplementary Material to the rule 

states that FINRA considers the issuance 

of, and trade reporting with, multiple 

MPIDs to be a privilege and not a right. 

When requesting an additional MPID(s), 

a member must identify the purpose(s) 

and system(s) for which the multiple 

MPIDs will be used. If FINRA 

determines that the use of multiple 

MPIDs is detrimental to the 

marketplace, or that a member is using 

one or more additional MPIDs 

improperly or for purposes other than 

the purpose(s) identified by the 

member, FINRA staff retains full 

discretion to limit or withdraw its grant 

of the additional MPID(s) to such 

member. 

FINRA has filed the proposed rule 

change for immediate effectiveness and 

has requested that the SEC waive the 

requirement that the proposed rule 

change not become operative for 30 days 

after the date of the filing, such that 

FINRA can implement the proposed 

rule change immediately. 

2. Statutory Basis 

FINRA believes that the proposed rule 

change is consistent with the provisions 

of Section 15A(b)(6) of the Act,6 which 

requires, among other things, that 

FINRA rules must be designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, and, in 

general, to protect investors and the 

public interest. FINRA believes that the 

proposed rule change will create a 

system that will allow members to use 

multiple MPIDs when quoting and 

trading OTC Equity Securities with 

sufficient oversight by FINRA to ensure 

that the MPIDs are not being used 

improperly or in a way that would be 

detrimental to the marketplace. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FINRA 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 

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, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 7 and Rule 19b– 

4(f)(6) thereunder.8

FINRA has requested that the 

Commission waive the 30-day operative 

delay so that it may immediately extend 

the use of multiple MPIDs to the OTC 

market on a pilot basis. The 

Commission has determined that 

waiving the 30-day operative delay of 

FINRA’s proposal is consistent with the 

protection of investors and the public 

interest because FINRA’s proposed 

system for extending the use of multiple 

MPIDs to the OTC market is comparable 

to the pilot program currently in place 

for exchange-listed securities, which the 

Commission previously approved.9

Therefore, the Commission designates 

the proposal operative upon filing.10

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission may summarily abrogate 

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 

Number SR–FINRA–2009–051 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–FINRA–2009–051. 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 


pwalker on DSK8KYBLC1PROD with NOTICES
Federal Register / Vol. 74, No. 151 / Friday, August 7, 2009 / Notices 39723 

11 17 CFR 200.30–3(a)(12). 

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

2The Commission has modified the text of the 

summaries prepared by FICC. 

3Securities Exchange Act Release No. 60368 (July 

22, 2009), 74 FR 37275. 

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 inspection and copying 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 FINRA. 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–FINRA–2009–051 and 

should be submitted on or before 

August 28, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–18976 Filed 8–6–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60421; File No. SR–FICC– 

2009–07] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

Haircuts Applied to Eligible Clearing 

Fund Securities and Eligible 

Participant Fund Securities 

August 3, 2009. 

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

Securities Exchange Act of 1934 

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

July 13, 2009, the Fixed Income Clearing 

Corporation (‘‘FICC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which items have been prepared 

primarily by FICC. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

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 modify the haircuts applied 

to Eligible Clearing Fund Securities and 

Eligible Participant Fund Securities. 

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 these statements.2

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

Under the Rules of the Government 

Securities Division (‘‘GSD’’) and the 

Mortgage-Backed Securities Division 

(‘‘MBSD’’) (‘‘Rules’’), GSD Members and 

MBSD Participants are required to 

deposit to the GSD Clearing Fund and 

MBSD Participants Fund, respectively, 

the amount of each Member’s or 

Participant’s required deposit, which is 

established by FICC in accordance with 

formulas specified in the Rules 

(‘‘Required Deposit’’). 

A Member or Participant may satisfy 

its Required Deposit with cash, and 

FICC may permit a portion of the 

Member’s or Participant’s deposit to be 

evidenced by an open account 

indebtedness secured by Eligible 

Clearing Fund Securities for the GSD 

and Eligible Participants Fund 

Securities for the MBSD. Eligible 

Clearing Fund Securities and Eligible 

Participants Fund Securities consist of 

certain Treasury, agency, and mortgagebacked securities. 

For reasons set forth in a companion 

rule filing, FICC’s affiliate, National 

Securities Clearing Corporation 

(‘‘NSCC’’), has increased haircuts on 

Clearing Fund collateral.3 Given that the 

haircuts are applied by FICC and NSCC 

systemically and on a harmonized basis, 

these changes are also being applied by 

FICC. 

Therefore, FICC proposes to modify 

the GSD’s Schedule of Haircuts for 

Eligible Clearing Fund Securities and 

the MBSD’s Schedule of Haircuts for 

Eligible Participants Fund Securities to 

update the correlating range of haircuts 

applied to the types of Eligible Clearing 

Fund Securities and Eligible 

Participants Fund Securities. 

Specifically, FICC proposes to increase 

the haircut on: (i) Interest bearing 

Treasuries with terms greater than 10 

years but less than 15 years from the 

current 5 percent to 6 percent and (ii) 

zero coupon obligations of U.S. 

Treasury and Agency Securities from 

the current 2 to 10 percent based on 

term to 5 to 12 percent based on term. 

A complete listing of the haircut 

schedule, showing modifications, is as 

follows (deletions are in brackets and 

additions are italicized): 

GSD SCHEDULE OF HAIRCUTS FOR ELIGIBLE CLEARING FUND SECURITIES

Security type Remaining maturity Haircut 

1. Treasury 

Bills, Notes, Bonds, TIPS ........................... Zero to 1 year ................................................... 2.0% 

1 year to 2 years .............................................. 2.0% 

2 years to 5 years ............................................ 3.0% 

5 years to 10 years .......................................... 4.0% 

10 years to 15 years ........................................ [5.0%] 6.0% 

15 years or greater ........................................... 6.0% 

Zero Coupon .............................................. Zero to 1 year ................................................... [2.0%] 5.0% 


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