Federal Register / Vol. 77, No. 35 / Wednesday, February 22, 2012 / Notices 10591 

6 17 CFR 200.30–3(a)(12). 

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

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

3 17 CFR 240.19b–4(f)(1). 

4The Commission has modified the text of the 

summaries prepared by NSCC. 

NSCC, specifically with proposed Rule 

17Ad–22(b)(1) that addresses 

measurement and management of credit 

exposures, as well as with the IOSCO 

Recommendations 3 and 4. The 

proposed rule change is not inconsistent 

with the existing rules of NSCC, 

including any other rules proposed to be 

amended. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

NSCC believes that the proposed rule 

change will not impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. The proposed rule 

change will allow NSCC to apply a 

margin requirement to corporate and 

municipal bonds cleared at NSCC that 

captures the risk characteristics of these 

instruments. Therefore, the proposed 

rule change will help NSCC to limit its 

exposures and losses to these 

instruments and as such will contribute 

to the goal of financial stability in the 

event of member default and will render 

not unreasonable or inappropriate any 

burden on competition that the changes 

could be regarded as imposing. 

(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 been 

solicited or received. 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 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: (A) By 

order approve or disapprove the 

proposed rule change or (B) institute 

proceedings to determine whether the 

proposed rule change should be 

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 email to rule-comments@sec.

gov. Please include File Number SR– 

NSCC–2012–02 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–NSCC–2012–02. This file 

number should be included on the 

subject line if email 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 Section, 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 

will also be available for inspection and 

copying at the principal office of NSCC 

and on NSCC’s Web site at http://www.

dtcc.com/downloads/legal/rule_filings/

2012/nscc/2012-02.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–2012–02 and should 

be submitted on or before March 14, 

2012. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4004 Filed 2–21–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66399; File No. SR–NSCC– 

2012–01] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Make a Technical 

Correction With Respect to the Excess 

Capital Premium as Set Forth in 

Procedure XV (Clearing Fund Formula) 

of NSCC’s Rules and Procedures 

February 15, 2012. 

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

Securities Exchange Act of 1934 

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

February 1, 2012, the National 

Securities Clearing Corporation 

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

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I and II below, which Items have 

been prepared primarily by NSCC. 

NSCC filed the proposal pursuant to 

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

Rule 19b–4(f)(1) 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 this filing is to make 

a technical correction with respect to 

the Excess Capital Premium as set forth 

in Procedure XV (Clearing Fund 

Formula) of NSCC’s 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 these statements.4


srobinson on DSK4SPTVN1PROD with NOTICES
10592 Federal Register / Vol. 77, No. 35 / Wednesday, February 22, 2012 / Notices 

5The Premium also excludes any amount 

collected pursuant to Rule 15 (Assurances of 

Financial Responsibility and Operational 

Capability). 

6Securities Exchange Act Release No. 34–54457 

(September 15, 2006), 71 FR 55239 (September 21, 

2006). 

7Securities Exchange Act Release No. 34–57901 

(June 2, 2008), 73 FR 32373 (June 6, 2008). This 

change did not apply to Balance Order transactions. 

8 15 U.S.C. 78q–1. 

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

10 17 CFR 240.19b–4(f)(1). 11 17 CFR 200.30–3(a)(12). 

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The purpose of this filing is to make 

a technical correction with respect to 

the Excess Capital Premium as set forth 

in Procedure XV (Clearing Fund 

Formula) of NSCC’s Rules and 

Procedures. 

Members are required to make 

deposits to the Clearing Fund with the 

amount of each Member’s required 

deposit being fixed by NSCC in 

accordance with Procedure XV. The 

Clearing Fund Formula includes an 

Excess Capital Premium (‘‘Premium’’), 

which may be added to a Members 

deposit requirement when a Member’s 

Clearing Fund requirement exceeds its 

regulatory excess capital. Certain 

components of the Clearing Fund 

Formula are excluded from the 

calculation of the Premium, including: 

(a) A charge applicable to ‘‘Market 

Makers’’ and (b) a ‘‘special charge’’ 

based on the price fluctuations, 

volatility, or lack of liquidity of any 

security.5 These components are 

excluded with respect to the 

computation of the Premium for both 

CNS transactions and Balance Order 

transactions. At the time of the rule 

change to implement the Premium, the 

applicable components for (a) and (b) 

above as they relate to CNS transactions 

were listed under Subsections I.(A)(1)(c) 

and I.(A)(1)(d) of Procedure XV.6 A 

subsequent rule change submitted to the 

Commission (relating to NSCC’s ID Net 

service) created an additional Clearing 

Fund component applicable to CNS 

transactions that was designated as 

Subsection I.(A)(1)(c).7 This caused the 

references for the components described 

in (a) and (b) above to be changed to 

I.(A)(1)(d) and I.(A)(1)(e) respectively. 

However, the cross-references to those 

Subsections were inadvertently not 

revised in the description of the 

Premium. Therefore, NSCC is making a 

technical modification to the 

description of the Premium as set forth 

in Procedure XV to reflect the changes 

which were inadvertently omitted from 

the latter rule change as described 

above. 

NSCC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 8

and the rules and regulations 

thereunder applicable to NSCC because 

it makes a technical correction to a rule 

which allows NSCC to effectively 

manage risk. As such, it assures the 

safeguarding of securities and funds, 

which are in the custody or control of 

NSCC or for which it is responsible. 

(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 been 

solicited or received. 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)(i) of the 

Act 9 and Rule 19b–4(f)(1) 10 thereunder 

because it constitutes a stated policy, 

practice, or interpretation with respect 

to the meaning, administration, or 

enforcement of an existing rule of 

NSCC. 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 email to rulecomments@sec.gov. Please include File 

Number SR–NSCC–2012–01 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–NSCC–2012–01. This file 

number should be included on the 

subject line if email 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 filings 

also will be available for inspection and 

copying at the principal office of NSCC 

and on NSCC’s Web site at http:// 

dtcc.com/downloads/legal/rule_filings/ 

2012/nscc/2012–01.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– 

2012–01 and should be submitted on or 

before March 14, 2012. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4005 Filed 2–21–12; 8:45 am] 

BILLING CODE 8011–01–P 


srobinson on DSK4SPTVN1PROD with NOTICES