Federal Register / Vol. 72, No. 46 / Friday, March 9, 2007 / Notices 10807 

18 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). 

4Securities Exchange Act Release No. 36091 

(Aug. 10, 1995), 60 FR 42931 (Aug. 17, 1995) [File 

No. SR–NSCC–95–6]. See also Securities Exchange 

Act Release Nos. 38283 (Feb. 13, 1997), 62 FR 

38283 (Feb. 21, 1997) [File No. SR–NSCC–96–19], 

and 40740 (Dec. 3, 1998), 63 FR 67962 (Dec. 9, 

1998) [File No. SR–NSCC–98–10]. 

5The original Participating Clearing Entities 

were: Participants Trust Company, Philadelphia 

Depository Trust Company, Stock Clearing 

Corporation of Philadelphia, Boston Stock 

Exchange Clearing Corporation, The Depository 

Trust Company, The Options Clearing Corporation, 

MBS Clearing Corporation, and Government 

Securities Clearing Corporation. 

6 15 U.S.C. 78q–1. 

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

8 17 CFR 240.19b–4(f)(4). 

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. Copies of the filing also will be 

available for inspection and copying at 

the principal office of the NASD. 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–NASD–2007–016 and should be 

submitted on or before March 30, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.18

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4185 Filed 3–8–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55391; File No. SR–NSCC–

2007–04] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Collateral 

Management Service 

March 2, 2007. 

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

Securities Exchange Act of 1934,1 notice 

is hereby given that on February 22, 

2007, the National Securities Clearing 

Corporation (‘‘NSCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared substantially by NSCC. NSCC 

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 

Under the proposed rule change, 

NSCC will eliminate references to the 

Collateral Management Service (‘‘CMS’’) 

in its rules and procedures. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

NSCC 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. NSCC 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 

NSCC has offered CMS to its members 

since 1995.4 CMS was created to 

provide NSCC members with access on 

a daily basis to information regarding 

their clearing fund, margin, and other 

similar requirements and deposits 

(‘‘CMS data’’) at NSCC, other 

participating clearing agencies 

registered with the Commission, and 

clearing organizations recognized by the 

Commodity Futures Trading 

Commission (collectively, ‘‘Participating 

Clearing Entities’’ 5). The information 

included such things as excess or deficit 

amounts and data on underlying 

collateral. The CMS service also 

permitted Participating Clearing Entities 

to receive CMS data with respect to 

their participants. 

However, few NSCC members elected 

to use CMS because they can obtain 

access to CMS data by other means 

provided by NSCC. In addition, by the 

end of 2004, the Participating Clearing 

Entities had long ceased transmitting 

CMS data to NSCC, and the service had 

become dormant. Accordingly, NSCC 

will delete Rule 53 and Procedure XVI 

(Collateral Management Service), will 

delete all references to CMS from Rule 

4, Section 9 (Clearing Fund), and will 

amend Rule 49 (Release of Clearing 

Data) to preserve NSCC’s right to share 

clearing fund data with appropriate 

regulatory and self-regulatory 

organizations. 

NSCC believes that the proposed rule 

change is consistent with Section 17A of 

the Act 6 and the rules and regulations 

thereunder because by eliminating rules 

pertaining to an obsolete and dormant 

service, while preserving its right to 

share clearing fund data with 

appropriate regulatory bodies, NSCC’s 

rules will more accurately reflect the 

services it provides to its members. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NSCC 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 

NSCC has discussed the proposed 

rule change with Participating Clearing 

Entities but has not solicited or received 

written comments relating to the 

proposed rule change. NSCC 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 pursuant to Section 

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

19b–4(f)(4) 8 thereunder because it 

effects a change in an existing service of 

a registered clearing agency that does 

not adversely affect the safeguarding of 

securities and funds in the custody or 

control of the clearing agency or for 

which it is responsible and does not 

significantly affect the respective rights 

or obligations of the clearing agency or 

persons using the service. 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 


jlentini on PROD1PC65 with NOTICES
10808 Federal Register / Vol. 72, No. 46 / Friday, March 9, 2007 / Notices 

9 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. 

4 17 CFR 242.611. 

5See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496 (June 29, 2005). 

6The Trading Phase Date is currently March 5, 

2007. 

7As defined in Reg. NMS, a ‘‘trade-through’’ is 

the ‘‘purchase or sale of an NMS stock during the 

regular trading hours, either as principal or agent, 

at a price that is lower than a protected bid or 

higher than a protected offer.’’ 17 CFR 

242.600(b)(77). 

8 17 CFR 242.611. 

9The Pilot Stocks Phase is currently set to begin 

on July 9, 2007. 

10 17 CFR 242.611. 

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–NSCC–2007–04 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

No. SR–NSCC–2007–04. 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 

Section, 100 F Street, NE., Washington, 

DC 20549. Copies of such filing also will 

be available for inspection and copying 

at NSCC’s principal office and on 

NSCC’s Web site at http:// 

www.nscc.com/legal/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 

submission should refer to File No. SR–

NSCC–2007–04 and should be 

submitted on or before March 30, 2007. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–4189 Filed 3–8–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55387; File No. SR–NYSE–

2007–23] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Amend Rule 

15A.50 Clarifying the Circumstances 

Under Which the Exchange Will 

Automatically Route Orders to Other 

Market Centers to Prevent TradeThroughs, and Rename Rule 15A 

March 2, 2007. 

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 March 1, 

2007, the New York Stock Exchange 

LLC (‘‘NYSE’’ or 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 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 is proposing to amend 

Rule 15A.50 to describe how tradethroughs will be prevented on the 

Exchange in conformance with the 

Order Protection Rule (‘‘OPR’’)4 of 

Regulation National Market System 

(‘‘Reg. NMS’’)5 beginning on the Trading 

Phase Date of Reg. NMS,6 and to rename 

Rule 15A the ‘‘Order Protection Rule.’’

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 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change. The text of 

these 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 aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The NYSE proposes to amend Rule 

15A.50 to reflect the circumstances 

under which the Exchange will 

automatically route orders to other 

market centers to prevent tradethroughs7 on its market, beginning on 

the Trading Phase Date of Reg. NMS. 

The avoidance of trade-throughs on the 

Exchange has been governed by Section 

8(d)(i) (Order Protection—Trade 

Throughs; Locked Markets) and the 

related provisions of Section B of the 

ITS Plan, and NYSE Rule 15A (ITS 

‘‘Trade-Throughs’’ And ‘‘Locked 

Markets’’), implemented as a function of 

the Exchange’s participation in the ITS 

Plan. Presently, NYSE Rule 15A.50 

describes the circumstances under 

which the Exchange will route orders to 

other market centers to avoid trade 

throughs according to parameters 

established by the ITS Plan. However, it 

is expected that the termination of the 

ITS Plan will coincide with the Trading 

Phase Date. More significantly, the 

Exchange is required to fully operate a 

Reg. NMS-compliant trading system, 

which includes compliance with Rule 

611 of Reg. NMS,8 no later than the 

Trading Phase Date in order to qualify 

NYSE quotations for trade-through 

protection beginning with the Pilot 

Stocks Phase and beyond.9

The Exchange notes that it completed 

Phase IV of the Hybrid MarketSM rollout 

on February 28, 2007. 

The rule amendment proposed herein 

is intended to conform Rule 15A.50 in 

recognition of certain Phase IV changes 

that were made to Exchange trading 

systems to be consistent with the 

requirements of Rule 611 of Reg. NMS,10

as well as the elimination of the ITS 

Plan. Specifically, the amendment seeks 

to update NYSE Rule 15A.50 to describe 

the conditions under which the 


jlentini on PROD1PC65 with NOTICES