28086 Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Notices 

10 15 U.S.C. 78s(b)(3)(A)(iii). 

11 17 CFR 240.19b–4(f)(4). 

12 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 15 U.S.C. 78s(b)(3)(A)(iii). 

5 17 CFR 240.19b–4(f)(6). 

(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. DTC will notify 

the Commission of any written 

comments received by DTC. 

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 10 and Rule 19b–4(f)(4) 11

thereunder because the proposed rule 

change effects a change in an existing 

service of a registered clearing agency 

that: (i) Does not adversely affect the 

safeguarding of securities or funds in 

the custody or control of the clearing 

agency or for which it is responsible and 

(ii) does not significantly affect the 

respective rights or obligations of the 

clearing agency 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–DTC–2009–09 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–DTC–2009–09. 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 filings also will be 

available for inspection and copying at 

the principal office of DTC and on 

DTC’s Web site at http://www.dtcc.com/ 

legal/rule_filings/dtc/2009-09.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–DTC–2009–09 and should 

be submitted on or before July 6, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13808 Filed 6–11–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59997; File Nos. SR–NYSE– 

2009–50 and SR–NYSEAmex–2009–20] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC and NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Changes Relating to Comparison 

of Executed Transactions 

May 28, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that on May 19, 

2009, New York Stock Exchange LLC 

(‘‘NYSE’’) and NYSE Amex LLC 

(‘‘NYSE-Amex’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

changes as described in Items I and II 

below, which Items have been prepared 

primarily by NYSE and NYSE-Amex 

(collectively, ‘‘Exchanges’’). The 

Exchanges filed the proposed rule 

changes pursuant to Section 

19(b)(3)(A)(iii) of the Act 4 and Rule 

19b–4(f)(6) thereunder 5 so that the 

proposals were effective upon filing 

with the Commission. The Commission 

is publishing this notice to solicit 

comments on the proposed rule changes 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchanges propose to amend 

NYSE Rule 134 (Differences and 

Omissions-Cleared Transactions) and 

NYSE-Amex Rule 134 (NYSE Amex 

Equities. Differences and OmissionsCleared Transactions) to provide for 

certain technical procedures that the 

Exchanges use in the comparison stage 

of trade settlement. 

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 

Exchanges included statements 

concerning the purpose of, and basis for, 

the proposed rule changes and 

discussed any comments they received 

on the proposed rule changes. The text 

of those statements may be examined at 

the places specified in Item IV below. 

The Exchanges have prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

parts of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

NYSE operates the On-Line 

Comparison System (‘‘OCS’’), which 

provides the first step for the settlement 

of securities transactions on the 

Exchanges. OCS conducts comparison 

processing, which includes matching 

initial trade submissions, correction 

processing, omnibus processing, and 

questioned trade (‘‘QT’’) resolution. 

OCS interacts with the Exchanges’ 

members and member organizations in 

their roles as clearing firms, brokers, 

and Designated Market Making Units 

(‘‘DMM Units’’) and is linked internally 

to the Exchanges’ trading systems and 

Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Notices 28087 

6The National Securities Clearing Corporation 

(‘‘NSCC’’) is a clearing agency registered with the 

Commission under Section 17A of the Securities 

Exchange Act of 1934. NSCC provides centralized 

clearance and settlement services for equity security 

trades for U.S. broker-dealers. 

7See also NYSE Rule 130(c) and NYSE-Amex 

Equities Rule 130(c) (Overnight Comparison of 

Exchange Transactions). 

8An ‘‘omnibus account’’ is an account in which 

the transactions of multiple individual members are 

combined. 

9NYSE Rule 134(a) and NYSE-Amex Equities 

Rule 134(a). These rules also set forth the 

procedures and timeframes to resolve QTs. 

10NYSE Rule 70(a)(i) and NYSE-Amex Equities 

Rule 70(a)(i). 

11 15 U.S.C. 78f(b)(5). 

12 15 U.S.C. 78s(b)(3)(A)(iii). 

13 17 CFR 240.19b–4(f)(6). 

14 Id. 

15 17 CFR 240.19b–4(f)(6)(iii). 

externally to the National Securities 

Clearing Corporation.6

For all Exchange-based transactions, 

NYSE Rule 132.30 (Comparison and 

Settlement of Transactions Through A 

Fully-Interfaced or Qualified Clearing 

Agency) and NYSE-Amex Equities Rule 

132.30 (Comparison and Settlement of 

Transactions Through A FullyInterfaced or Qualified Clearing Agency) 

require members and member 

organizations to submit data elements to 

OCS.7 This data is then used to compare 

the terms of the two sides (i.e., buy and 

sell) of a trade. When the two sides 

match, the trade is successfully 

compared and will move on to the 

subsequent stages of settlement 

processing. For automated trades, this 

data is recorded electronically, which 

reduces the error rate and produces 

‘‘clean’’ or ‘‘locked-in’’ trades. For 

manual trades, data is submitted by both 

sides of the trade through their clearing 

firms. 

To facilitate the comparison process, 

the Exchanges utilize omnibus account 

designations to record trade data.8 Using 

omnibus account designations allows 

for universal contras for one trade side, 

thereby reducing the number of 

different data elements that have to be 

independently recorded into a broker’s 

hand-held device or written on a Floor 

report for a trade, which also reduces 

the likelihood of error. 

Despite the increased automation of 

the trading process and the use of 

universal designations, there are still a 

few trades that do not successfully 

compare. That is, all the trade data 

elements from the buy and sell sides do 

not match. This can occur when the 

trade is done manually and there is an 

error made in submitting the trade 

information from one or both sides. It 

can also occur on electronic trades if 

there are software problems or systemic 

problems that cause incorrect 

information to be filed thus causing 

inaccurate information to be 

transmitted. When trades do not 

compare, a QT is created and then goes 

through the ‘‘QT process.’’ This process 

mandates that clearing member 

organizations must resolve any trades 

that have not been successfully 

compared by the first business day after 

the trade date (‘‘T+1’’).9

The Exchanges note that the 

incidence of QTs is very low both in 

terms of absolute numbers and as a 

percentage of daily trades. For example, 

for the period January 2 through January 

8, 2009, there was an average of just 337 

QTs per day at the NYSE on a T+1 basis, 

spread among the approximately 120 

clearing firms and six DMM units. 

These are then researched and almost 

all of these are reconciled by the second 

evening after the trade date (‘‘T+2’’). As 

a result, on average there are typically 

less than three unresolved trades per 

month. There is an average of over 4 

million trades each day on NYSE. 

One of the functions of OCS is to 

reconcile the balances in the omnibus 

accounts at the end of each trading day. 

The accounting procedure used for trade 

resolution requires that an omnibus 

account must net to zero at the end of 

any trading session. That is, there 

cannot be an unassigned security or 

money position in an omnibus account 

since that would, in effect, assign the 

open balance to the Exchange where the 

transaction occurred. The Exchanges, 

therefore, propose to assign on T+2 any 

open balance in any of the omnibus 

accounts it uses to compare trades to 

either a DMM Unit or the member 

organization that has been identified as 

the clearing firm for one side of the 

unresolved trade. A clearing firm will be 

assigned as the default contra side in a 

trade that resulted from an execution 

involving e-Quotes, which are trades 

involving Floor broker agency interest 

files.10 The DMM Unit will be assigned 

when there is an open imbalance in an 

omnibus account that resulted from the 

execution of orders that did not involve 

an e-Quote, regardless of whether the 

DMM was involved in the transaction. 

Specifically, the Exchanges propose to 

add language to their respective Rule 

134 to enable them to assign either a 

DMM Unit or an e-clearing member 

organization as the contra party to any 

uncompared transaction or unresolved 

omnibus account imbalance remaining 

in OCS at the close of business on the 

second business day after the trade date. 

Since the number of QTs that remain 

unresolved by the end of the second day 

after the initial trade date is extremely 

low, the Exchanges expect that there 

will be very few assignments of a 

default contra side involving clearing 

firms or DMM Units that will be made 

under the proposed revisions of their 

respective Rule 134. 

The Exchanges state that the proposed 

rule changes are consistent with their 

obligations under Section 6(b)(5) of the 

Act,11 which requires the rules of a 

registered national securities exchange 

be designed to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and in 

general to protect investors and the 

public interest. The Exchanges believe 

that the proposed rule changes comply 

with these requirements because the 

changes enhance the comparison 

process at the Exchanges, thereby 

supporting the timely settlement of 

securities transactions. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchanges do not believe that the 

proposed rule change will impose 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 

The Exchanges did not solicit or 

receive written comments with respect 

to the proposed rule change. The 

Exchanges will notify the Commission 

of any comments they receive. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule changes were 

effective upon filing with the 

Commission pursuant to Section 

19(b)(3)(A)(iii) of the Act 12 and Rule 

19b–4(f)(6) thereunder 13 because each 

of the proposed rule changes does not: 

(i) Significantly affect the protection of 

investors or the public interest; (ii) 

impose any significant burden on 

competition; and (iii) become operative 

prior to 30 days from the date on which 

it was filed, or such shorter time as the 

Commission may designate, if 

consistent with the protection of 

investors and the public interest. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 14 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),15 the 

Commission may designate a shorter 

28088 Federal Register / Vol. 74, No. 112 / Friday, June 12, 2009 / Notices 

16For purposes only of waiving the 30-day 

operative delay of this proposal, the Commission 

has considered the proposed rule’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). The Exchange provided the 

Commission written notice of its intent to file the 

proposed rule change at least five business days 

prior to filing. 17 17 CFR 200.30–3(a)(12). 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchanges have asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. 

The Commission believes waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest. Acceleration of the 

operative date will enable the 

Exchanges to clarify and strengthen 

their process to resolve uncompared 

transactions or unresolved account 

imbalances without undue delay while 

still affording interested parties the 

opportunity to submit comments or 

concerns to the Commission regarding 

these proposals. The new processes 

should instill greater confidence among 

the Exchanges’ members and investors 

that such situations will be handled in 

an orderly and expeditious manner. For 

these reasons, the Commission 

designates the proposal to be effective 

and operative upon filing with the 

Commission.16

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–NYSE-2009–50 or NYSEAmex2009–20 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 No. 

SR–NYSE–2009–50 or NYSEAmex– 

2009–20. At least one of these file 

numbers 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 20549–1090 on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of the filing will also be 

available for inspection and copying at 

the Exchanges principal offices and on 

NYSE’s Internet Web site at http:// 

www.nyse.com. 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–NYSE– 

2009–50 or NYSEAmex–2009–20 and 

should be submitted on or before July 6, 

2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–13807 Filed 6–11–09; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF STATE 

[Public Notice 6660] 

Culturally Significant Objects Imported 

for Exhibition Determinations: ‘‘Tim 

Burton’’ 

SUMMARY: Notice is hereby given of the 

following determinations: Pursuant to 

the authority vested in me by the Act of 

October 19, 1965 (79 Stat. 985; 22 U.S.C. 

2459), Executive Order 12047 of March 

27, 1978, the Foreign Affairs Reform and 

Restructuring Act of 1998 (112 Stat. 

2681, et seq.; 22 U.S.C. 6501 note, et 

seq.), Delegation of Authority No. 234 of 

October 1, 1999, Delegation of Authority 

No. 236 of October 19, 1999, as 

amended, and Delegation of Authority 

No. 257 of April 15, 2003 [68 FR 19875], 

I hereby determine that the objects to be 

included in the exhibition ‘‘Tim 

Burton,’’ imported from abroad for 

temporary exhibition within the United 

States, are of cultural significance. The 

objects are imported pursuant to loan 

agreements with the foreign owners or 

custodians. I also determine that the 

exhibition or display of the exhibit 

objects at The Museum of Modern Art, 

New York, NY, from on or about 

November 22, 2009, until on or about 

April 26, 2010, and at possible 

additional exhibitions or venues yet to 

be determined, is in the national 

interest. Public Notice of these 

Determinations is ordered to be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: For 

further information, including a list of 

the exhibit objects, contact Julie 

Simpson, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: (202–453–8050). The 

address is U.S. Department of State, SA– 

44, 301 4th Street, SW., Room 700, 

Washington, DC 20547–0001. 

Dated: June 5, 2009. 

C. Miller Crouch, 

Acting Assistant Secretary for Educational 

and Cultural Affairs, 

Department of State. 

[FR Doc. E9–13878 Filed 6–11–09; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice 6659] 

State-68, Office of the Coordinator for 

Reconstruction and Stabilization 

Records 

SUMMARY: Notice is hereby given that 

the Department of State proposes to 

alter an existing system of records, 

Office of the Coordinator for 

Reconstruction and Stabilization 

Records, State-68, pursuant to the 

provisions of the Privacy Act of 1974, as 

amended (5 U.S.C. 552a) and Office of 

Management and Budget Circular No. 

A–130, Appendix I. The Department’s 

report was filed with the Office of 

Management and Budget on June 5, 

2009. 

It is proposed that the current system 

will retain the name ‘‘Office of the 

Coordinator for Reconstruction and 

Stabilization Records.’’ It is also 

proposed that due to the expanded 

scope of current system, the altered 

system description will include