Document ID: SEC-2010-0142-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; The Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Modify the Fee Schedule of the Government Securities Division of the Fixed Income Clearing Corporation
Posted Date: 2010-01-27T05:00Z

[Federal Register: January 27, 2010 (Volume 75, Number 17)]
[Notices]               
[Page 4430-4431]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27ja10-132]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61395; File No. SR-FICC-2009-11]

 
 Self-Regulatory Organizations; The Fixed Income Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change to Modify the Fee Schedule of the Government Securities 
Division of the Fixed Income Clearing Corporation

January 21, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 29, 2009, the 
Fixed Income Clearing Corporation (``FICC'') 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 FICC. FICC filed the proposal pursuant to Section 
19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) \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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \3\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change amends FICC's rules to modify the fee 
schedules of its Government Securities Division (``GSD'').

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 these 
statements.\4\
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    \4\ The Commission has modified the text of the summaries 
prepared by FICC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    (a) The purpose of this filing is to modify participant fees as 
outlined below. The fee changes were effective as of January 4, 2010.
    (i) The GSD fee structure for submission of a side of a trade and 
submission of a repo transaction is revised to reflect the following:

------------------------------------------------------------------------
                                       2009 Fee        2010 Proposed fee
------------------------------------------------------------------------
Up to 50,000 submissions per      $0.16 per item....  $0.21 per item.
 month.
50,000 to 100,001 submissions     $0.08 per item....  $0.12 per item.
 per month.
------------------------------------------------------------------------

[[Page 4431]]

     (ii) The following Netting Fee and Charges were revised as 
follows:

------------------------------------------------------------------------
                                                          2010 Proposed
                                       2009 Fee                fee
------------------------------------------------------------------------
1. For each side of a          (i) $0.16; and            (i) $0.16; and
 compared trade, other than a  (ii) $0.012 per $1        (ii) $0.016 per
 repo transaction, that is      million of par value.     $1 million of
 netted, a fee equaling the                               par value.
 sum (in addition to the
 comparison fee) of:
2. For each start leg or       (i) $0.16; and            (i) $0.16; and
 close leg of a repo           (ii) $0.060 per $1        (ii) $0.016 per
 transaction other than a GCF   million of par value.     $1 million of
 repo transaction that is                                 par value.
 netted, a fee equaling the
 sum (in addition to the
 comparison fee) of:
------------------------------------------------------------------------

    and;
    (iii) The charge for each deliver obligation and receive obligation 
created as a result of the netting process was a fee of $0.060 per $1 
million of par value. This fee was increased to $0.10 per $1 million.
    The proposed rule change is consistent with Section 17A of the 
Act,\5\ as amended, and the rules and regulations thereunder applicable 
to FICC. The proposed rule change updates FICC's fee schedule for GSD 
thereby providing for the equitable allocation of fees among its 
participants.
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    \5\ 15 U.S.C. 78q-1.
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(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

    Written comments relating to the proposed rule change were not and 
are not intended to be solicited or received. FICC will notify the 
Commission of any written comments received by FICC.

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)(ii) of the Act \6\ and Rule 19b-4(f)(2) 
\7\ thereunder because the proposed rule change changes a due fee or 
other change applicable only to members. 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
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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 rule-comments@sec.gov. Please include 
File Number SR-FICC-2009-11 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-FICC-2009-11. 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 FICC and on FICC's 
Web site at http://www.dtcc.com/downloads/legal/rule_filings/2009/
ficc/2009-11.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-
FICC-2009-11 and should be submitted on or before February 17, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1603 Filed 1-26-10; 8:45 am]
BILLING CODE 8011-01-P