Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 13331 

8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 240.19b–4(f)(2). 

10 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). 

4The Commission has modified the text of the 

summaries prepared by NSCC. 

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 8 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder 9 because it establishes or 

changes a due, fee, or other charge 

applicable only to a member imposed by 

the self-regulatory organization. 

Accordingly, the proposal is effective 

upon Commission receipt of the filing. 

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–2007–017 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 

Number SR–NASDAQ–2007–017. 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. Copies of the filing also will be 

available for inspection and copying at 

the principal office of Nasdaq. 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–2007–017 and 

should be submitted on or before April 

11, 2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.10

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5089 Filed 3–20–07; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–55478; File No. SR–NSCC–

2007–03] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule To Make Technical and Updating 

Changes to Its Reconfirmation and 

Pricing Service 

March 15, 2007. 

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

Securities Exchange Act of 1934 

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

January 26, 2007, the National 

Securities Clearing Corporation 

(‘‘NSCC’’) 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 NSCC. 

NSCC filed the proposal 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 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 rule change is to 

make technical and updating changes to 

its Reconfirmation and Pricing Service 

(‘‘RECAPS’’). 

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 these statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

RECAPS is a mandated service for all 

full-service NSCC members that 

reconfirms and reprices members’ fails 

in RECAP-eligible securities that 

represent positions that are currently 

failing outside of NSCC’s Continuous 

Net Settlement (‘‘CNS’’) system. It thus 

provides a mechanism for reducing 

outstanding non-CNS member fails. The 

proposed revisions to the procedures 

reflect enhancements to the service, 

confirming processing changes with 

current processes, and deletion of 

obsolete reports. 

RECAPS is currently offered 

quarterly. The processing cycle begins 

on a Tuesday and ends with 

successfully matched trades settling the 

following Tuesday. On the first Tuesday 

of the processing cycle, members submit 

CUSIP files for fails designated for 

processing through the service. The data 

on these files is used to obtain current 

prices for the designated securities. On 

Friday, members submit eligible aged 

fails to NSCC until a designated cut-off 

time. On Saturday, NSCC distributes 

RECAPS contract sheets, RECAPS CNS 

and Non-CNS Compared Summaries, 

Balance Orders (for matched 

transactions in Balance Order 

securities), and RECAPS CNS Projection 

Reports and Advisory Listings. On 

Monday, members take action on all 

unmatched items. On Tuesday, the final 

day of the RECAPS cycle, all matched 

fails are scheduled to settle. 

The process enhancements eliminate 

the need for submission of CUSIP files 

on Tuesday since current price 

information can be obtained on Friday 

when members submit their fails for 

reconfirming and pricing. In addition, 


jlentini on PROD1PC65 with NOTICES
13332 Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 

5Balance Order and Receiver and Deliver tickets 

were eliminated as part of the CNS Rewrite in 2004. 

Securities Exchange Act Release No. 50026 (July 15, 

2004), 69 FR 43650 (July 21, 2004) [File No. SR–

NSCC–2004–01]. 

6 15 U.S.C. 78q–1. 

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

8 17 CFR 240.19b–4(f)(4). 9 17 CFR 200.30–3(a)(12). 

the process enhancements enable the 

distribution of reports at an earlier time 

on Saturday and enable fails to settle on 

the next settlement day after they match 

(e.g., fails matched on Friday will settle 

on Monday and fails matched on 

Monday will settle on Tuesday). 

Furthermore, the RECAPS CNS 

Projection Report is being eliminated 

because the relevant information will be 

provided on the existing CNS Projection 

Report. Similarly, to conform to current 

trade processing practices where NSCC 

has eliminated Balance Order and 

Receive and Deliver tickets,5 RECAPS 

Balance Orders and RECAPS Trade-forTrade Receive and Deliver Orders will 

be evidenced by the information 

contained on the RECAPS Non-CNS 

Compared Trade Summary. 

Finally, the RECAPS procedure is 

being revised to clarify that reconfirmed 

fails in securities where the original fail 

price was less than one penny per share 

will settle on a trade-for-trade basis as 

a ‘‘Special Trade’’ with the RECAPS 

value being the original comparison 

value (as opposed to the systemgenerated price of one cent per share). 

Clarifying language also is being added 

to distinguish between information that 

appears on the RECAPS CNS Compared 

Trade Summary and information on the 

RECAPS Non-CNS Compared Trade 

Summary. 

Since the RECAPS procedures 

provides for NSCC to determine the 

processing schedule for each RECAPS 

cycle, NSCC advises its participants of 

the RECAPS calendar and the 

processing schedule through Important 

Notices. Members have been advised on 

the proposed scheduling changes 

outlined above, as well as the other 

enhancements described in this filing, 

in Important Notice A#6323, P&S#5893 

dated October 26, 2006. 

The proposed rule change is 

consistent with Section 17A of the Act,6

as amended, because the updated 

procedures and operational 

enhancements will further facilitate the 

accurate clearance and settlement of 

securities transactions, particularly, the 

settlement of aged fails. 

(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 

Written comments relating to the 

proposed rule change have not yet been 

solicited or received. On October 26, 

2006, members were advised by 

Important Notice A#6323, P&S#5893, of 

the proposed enhancements to RECAPS. 

NSCC will notify the Commission of any 

written comments received by NSCC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing proposed rule change 

has become effective upon filing 

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 NSCC that: (i) 

Does not adversely affect the 

safeguarding of securities or funds in 

the custody of NSCC or for which it is 

responsible; and (ii) does not 

significantly affect the respective rights 

or obligations of NSCC or persons using 

the service. At any time within sixty 

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–NSCC–2007–03 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 

Number SR–NSCC–2007–03. 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 filings also 

will be available for inspection and 

copying at the principal office of NSCC 

and on NSCC’s Web site at http:// 

nscc.com/legal/2007/2007-03.pdf. 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–NSCC–2007–03 and should 

be submitted on or before April 11, 

2007. 

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E7–5133 Filed 3–20–07; 8:45 am] 

BILLING CODE 8010–01–P 


jlentini on PROD1PC65 with NOTICES