Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Notices 37275 

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

2NSCC Rule 1 (Definitions and Descriptions) 

defines Eligible Clearing Fund Securities and its 

components which are Eligible Clearing Fund 

Treasury Securities, Eligible Clearing Fund Agency 

Securities, and Eligible Clearing Fund MortgageBacked Securities. 

3The Commission has modified the text of the 

summaries prepared by NSCC. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60368; File No. SR–NSCC– 

2009–05] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Modify Haircuts 

Applied to Eligible Clearing Fund 

Securities 

July 22, 2009. 

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

Securities Exchange Act of 1934 

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

July 10, 2009, 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. The 

Commission is publishing this notice to 

solicit comments on the proposed 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 proposed rule 

change is to modify the haircuts applied 

to Eligible Clearing Fund Securities.2

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.3

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

Under 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 

established by NSCC in accordance with 

one or more formulas (‘‘Required 

Deposit’’). A Member may satisfy its 

Required Deposit with a cash deposit, 

and NSCC may permit a portion of the 

Member’s Required Deposit (with the 

exception of the deposit of a Mutual 

Fund/Insurance Services Member) to be 

evidenced by an open account 

indebtedness secured by Eligible 

Clearing Fund Securities. Eligible 

Clearing Fund Securities consist of 

certain Treasury, Agency, and mortgagebacked securities. 

NSCC’s Rules and Procedures permit 

NSCC to fund settlement by pledging 

Clearing Fund deposits as collateral for 

loans. NSCC maintains a committed 

borrowing facility for this purpose. Due 

to elevated volatility experienced in the 

financial markets, collateral haircuts 

imposed on NSCC under the borrowing 

facility have increased. Therefore, NSCC 

is required to make corresponding 

increases in Clearing Fund collateral 

haircuts to maintain alignment with this 

facility. 

NSCC proposes to modify Procedure 

XV (Clearing Fund Formula and Other 

Matters) to update the correlating range 

of haircuts applied to the types of 

Eligible Clearing Fund Securities. In 

general, NSCC proposes to increase the 

haircuts for: (i) Interest bearing 

Treasuries with terms greater than 10 

years but less than 15 years from 5 

percent to a 6 percent and (ii) zero 

coupon Treasury and Agency securities 

from 2 to 10 percent based on term to 

5 to 12 percent based on term. A 

complete listing of the haircut schedule, 

showing modifications, is as follows: 

BILLING CODE 8010–01–P 

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37276 Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Notices 

BILLING CODE 8010–01–C 


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Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Notices 37277 

4 15 U.S.C. 78q–1. 

5 15 U.S.C. 78s(b)(3)(A)(iii). 

6 17 CFR 240.19b–4(f)(4). 7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

NSCC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 4

and the rules and regulations 

thereunder applicable to NSCC because 

the proposed rule change should 

facilitate the prompt and accurate 

clearance and settlement of securities 

transactions by adjusting NSCC’s 

haircut levels on Clearing Fund 

collateral and facilitating NSCC’s ability 

to ensure adequate collateral levels are 

maintained to facilitate settlement in the 

event of a participant default. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

NSCC does not believe that the 

proposed rule change will have any 

impact on 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 

No written comments relating to the 

proposed rule change have 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 rule change has become 

effective upon filing pursuant to Section 

19(b)(3)(A)(iii) of the Act 5 and Rule 

19b–4(f)(4) 6 thereunder because the 

proposed rule change effects a change in 

an existing service of NSCC that (i) does 

not adversely affect the safeguarding of 

securities or funds in the custody or 

control of NSCC or for which it is 

responsible and (ii) does not 

significantly affect the respective rights 

of the clearing agency or persons using 

the service. At any time within sixty 

days of the filing of such 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–2009–05 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–2009–05. 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, 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:// 

www.dtcc.com/legal/rule_filings/nscc/ 

2009.php. 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– 

2009–05 and should be submitted on or 

before August 18, 2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. E9–17935 Filed 7–27–09; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–60358; File Nos. SR–BX– 

2009–040, SR–Phlx–2009–60] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc. and NASDAQ 

OMX PHLX, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Changes Amending the By-Laws 

of The NASDAQ OMX Group, Inc., 

Their Parent Company 

July 21, 2009. 

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

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on July 16, 

2009, NASDAQ OMX BX, Inc. (‘‘BX’’) 

and NASDAQ OMX PHLX, Inc. (‘‘Phlx’’) 

(collectively, the ‘‘NASDAQ OMX 

Exchange Subsidiaries’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

changes as described in Items I, II, and 

III below, which Items have been 

substantially prepared by the NASDAQ 

OMX Exchange Subsidiaries. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

changes from interested persons. 

I. Self-Regulatory Organizations’ 

Statement of the Terms of Substance of 

the Proposed Rule Changes 

The NASDAQ OMX Exchange 

Subsidiaries are filing these proposed 

rule changes with regard to proposed 

changes to the By-Laws of their parent 

corporation, The NASDAQ OMX Group, 

Inc. (‘‘NASDAQ OMX’’). The proposed 

rule changes will be implemented as 

soon as practicable following 

submission of these filings. The text of 

the proposed rule changes is available at 

http://nasdaqomxbx.cchwallstreet.com 

and http:// 

nasdaqomxphlx.cchwallstreet.com/ 

nasdaqomxphlx/phlx, respectively, and 

at the respective NASDAQ OMX 

Exchange Subsidiary’s principal office, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organizations’ 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Changes 

In their filings with the Commission, 

each of the NASDAQ OMX Exchange 

Subsidiaries included statements 

concerning the purpose of and basis for 

its proposed rule change and discussed 

any comments it received on its 

proposed rule change. The text of these 

statements may be examined at the 

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