Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices 10321 

19 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). 4Recitals F and G of the FICC/CME Agreement. 

5 15 U.S.C. 78q–1. 

6 15 U.S.C. 78s(b)(3)(A)(iii). 

7 17 CFR 240.19b–4(f)(4). 

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 the 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–FINRA–2009–007 and 

should be submitted on or before March 

31, 2009. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–4965 Filed 3–9–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59498; File No. SR–FICC– 

2009–01] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change Relating To 

Modifying the Appendix of the GSD– 

CME Cross-Margining Agreement, 

Deletion of the GSD–TCC CrossMargining Arrangement, and Technical 

Changes and Corrections 

March 4, 2009. 

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

Securities Exchange Act of 1934 

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

January 13, 2009, the Fixed Income 

Clearing Corporation (‘‘FICC’’) 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 primarily by FICC. 

FICC filed the proposed rule change 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 2 and Rule 19b–4(f)(4) 

thereunder 3 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 amend 

the appendix of the cross-margining 

agreement between FICC and the 

Chicago Mercantile Exchange, Inc. 

(‘‘CME’’) (‘‘FICC/CME Agreement’’), and 

to make additional technical changes 

and corrections. 

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 such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of and 

Statutory Basis for the Proposed Rule 

Change 

FICC is proposing to amend its 

Divisions’ rules as follows: 

1. Revisions to Appendix A of the CrossMargining Agreement With the Chicago 

Mercantile Exchange, Inc. 

Through its Government Securities 

Division (‘‘GSD’’), FICC currently 

participates in a cross-margining 

arrangement with the CME. The FICC/ 

CME Agreement, which governs the 

arrangement, contains an Appendix A, 

which requires the parties to list other 

cross-margining or loss sharing 

arrangements to which they are parties 

and the order in which they will be 

considered when the parties calculate 

their available resources under the 

FICC/CME Agreement. The FICC/CME 

Agreement further provides that the 

parties may amend Appendix A without 

prior approval of the other party by 

giving notice to the other party.4

FICC has notified CME that it has 

amended Appendix A of the Agreement 

to: (1) Remove references to the crossmargining agreement with The Clearing 

Corporation (‘‘TCC’’) as that agreement 

is no longer in effect, (2) remove a 

reference to a multilateral netting 

contract and limited cross-guaranty 

agreement with the now-defunct 

Emerging Markets Clearing Corporation, 

(3) change the priority of the 

multilateral cross-guaranty agreements 

that FICC participates, and (4) make 

reference to the upcoming portfolio 

margining between GSD and FICC’s 

Mortgage-Backed Securities Division 

(‘‘MBSD’’). This rule change 

incorporates these changes into the 

FICC/CME Agreement, which is a part 

of the GSD’s rules. 

2. Correction to MBSD Rules 

FICC is also correcting a reference in 

MBSD’s rules to reflect actual practice. 

While MBSD’s fee schedule accurately 

labels a ‘‘fee’’ for non-compliance with 

MBSD trade input requirements, its 

rules incorrectly label this a ‘‘fine.’’ The 

proposed rule change corrects the fine 

reference. 

3. Clarifications to GSD’s Schedule of 

Time Frames 

FICC is updating its Schedule of Time 

Frames to correct the time during which 

FICC’s comparison, netting, settlement, 

and margining output normally is made 

available to members and to make clear 

that the funds-only settlement process 

occurs through the Federal Reserve’s 

National Settlement Service. 

FICC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 5

and the rules and regulations 

thereunder because it will make certain 

rule corrections and address the crossmargining agreements and therefore will 

support the prompt and accurate 

clearance and settlement of securities 

transactions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

FICC 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 

FICC has not solicited or received 

written comments relating to the 

proposed rule change. FICC 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 6 and Rule 

19b–4(f)(4) 7 thereunder because it 

effects a change in an existing service of 

a registered clearing agency that does 

10322 Federal Register / Vol. 74, No. 45 / Tuesday, March 10, 2009 / Notices 

8 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Pursuant to Section 7.1(a) of the Third Amended 

and Restated DE Operating Agreement, each 

Manager is designated as a ‘‘manager’’ of Direct 

Edge within the meaning of the Securities and [sic] 

Exchange Act of 1934 (the ‘‘Exchange Act’’). 4See Exchange Act Release No. 59135 (December 

22, 2008), 73 FR 79954 (December 30, 2008)(SR– 

ISE–2008–85)(Order approving a proposed rule 

change, as modified by amendment no. 1, relating 

to the purchase by International Securities 

Exchange Holdings, Inc. (‘‘ISE Holdings’’) of an 

ownership interest in Direct Edge). 

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 

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–FICC–2009–01 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

Station Place, 100 F Street, NE., 

Washington, DC 20549–1090. 

All submissions should refer to File No. 

SR–FICC–2009–01. 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, 450 Fifth Street, NW., 

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 FICC’s principal office and 

on FICC’s Web site at http://ficc.com/ 

gov/gov.docs.jsp?NS-query=#rf. 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–FICC–2009–01 and should be 

submitted on or before March 31, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–5057 Filed 3–9–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59492; File No. SR–ISE– 

2009–08] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change, as 

Modified by Amendment No. 1, by 

International Securities Exchange, LLC 

Relating to Changes to the Third 

Amended and Restated Limited 

Liability Company Operating 

Agreement of Direct Edge Holdings 

LLC 

March 3, 2009. 

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 February 

27, 2009, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) 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 by the selfregulatory organization. On March 3, 

2009, the Exchange filed Amendment 

No. 1 to the proposed rule change. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change, as modified by Amendment No. 

1, from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to make 

changes to the Third Amended and 

Restated Limited Liability Company 

Operating Agreement of Direct Edge 

Holdings LLC (‘‘Third Amended and 

Restated DE Operating Agreement’’) to 

preserve the right of the DB US 

Financial Markets Holding Corporation, 

LabMorgan Corporation, Merrill Lynch 

L.P. Holdings, Inc., Nomura Securities 

International, Inc., and Sun Partners 

LLC (together, the ‘‘ISE Stock Exchange 

Consortium Members’’), who were 

formerly minority unitholders of the ISE 

Stock Exchange, LLC, as defined below, 

to retain the right to designate a 

Manager to Direct Edge Holdings Board 

of Managers 3 on an ongoing basis. The 

text of the proposed rule change is 

available on the Exchange’s Web site 

http://www.ise.com, at the principal 

office of the Exchange, 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, the 

Exchange 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. The 

self-regulatory organization 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 

On December 23, 2008, the ISE closed 

a transaction whereby, among other 

things, ISE Stock Exchange, LLC (‘‘ISE 

Stock Exchange’’), a Delaware limited 

liability company, merged with and into 

Maple Merger Sub, LLC (‘‘Maple Merger 

Sub’’), a Delaware limited liability 

company and a wholly owned 

subsidiary of Direct Edge Holdings LLC 

(‘‘Direct Edge’’), with Maple Merger Sub 

being the surviving entity.4 As part of 

the same transaction, ISE Holdings 

purchased equity interests in Direct 

Edge such that subsequent to 

completing the transaction, ISE 

Holdings owns a 31.54% equity interest 

in Direct Edge. Following the closing of 

the transaction and the merger of ISE