Document ID: SEC-2012-0057-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Fixed Income Clearing Corp.
Posted Date: 2012-01-13T05:00Z

[Federal Register Volume 77, Number 9 (Friday, January 13, 2012)]
[Notices]
[Page 2103]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-587]

[[Page 2103]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66124; File No. SR-FICC-2008-01]

Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Designation of Longer Period for Commission Action on 
Proposed Rule Change To Allow the Mortgage-Backed Securities Division 
To Provide Guaranteed Settlement and Central Counterparty Services

January 10, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder \2\ on March 12, 2008, the 
Fixed Income Clearing Corporation (``FICC'') filed with the Securities 
and Exchange Commission (``Commission''), and on November 21, 2011, 
amended a proposed rule change to allow the Mortgage-Backed Securities 
Division (``MBSD'') to provide guaranteed settlement and central 
counterparty services. The proposed rule change was published for 
comment in the Federal Register on December 12, 2011.\3\ The Commission 
received one comment letter on the proposal.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 65899 (Dec. 6, 2011), 76 
FR 77287 (Dec. 12, 2011) (``Notice'') and Securities Exchange Act 
Release No. 65899A (Dec. 12, 2011), 76 FR 77865 (Dec. 14, 2011) 
(correcting a non-substantive portion of the Notice).
    \4\ See Letter from Christopher Killian, Managing Director, 
Securities Industry and Financial Markets Association, to Elizabeth 
M. Murphy, Secretary, Commission, dated December 19, 2011.
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    Prior to amendments introduced by the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (``Dodd-Frank Act''), Section 19(b)(2) of 
the Act \5\ provided that, within thirty-five days of the publication 
of notice of the filing of a proposed rule change, or within such 
longer period as the Commission may designate up to ninety days of such 
date if it finds such longer period to be appropriate and publishes its 
reasons for so finding, the Commission shall either approve the 
proposed rule change or institute proceedings to determine whether the 
proposed rule change should be disapproved.\6\ The thirty-fifth day 
after publication of notice of this filing is Monday, January 16, 2012, 
a national holiday. The last business day preceding that date is 
Friday, January 13, 2012.
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    \5\ 15 U.S.C. 78s(b)(2) (2010), amended by Section 916 of Pub. 
L. 111-203, 124 Stat. 1376 (2010).
    \6\ Because the original rule proposal was received by the 
Commission prior to the Dodd-Frank Act amendments to Section 
19(b)(2) of the Act, the operative timing and procedural 
requirements for Commission action are those that applied at the 
time the Commission received the original rule proposal.
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    The proposed rule change would modify the rules of FICC's MBSD to 
allow MBSD to provide guaranteed settlement and central counterparty 
(``CCP'') services to the mortgage-backed securities market. As FICC 
notes in the proposed rule change, the conversion of the MBSD to a CCP 
would increase the amount of risk to FICC because FICC would assume 
risk currently borne by bilateral counterparties in the market. The 
Commission finds it appropriate to designate a longer period within 
which to take action on the proposed rule change so that it has 
sufficient time to consider the risk management implications of the 
proposed rule change in light of, among other things, initiatives FICC 
proposed to develop under the proposed rule change and any other 
initiatives FICC may develop during the extended period.
    Accordingly, pursuant to Section 19(b)(2) of the Act,\7\ the 
Commission designates March 9, 2012, as the date by which the 
Commission should either approve or institute proceedings to determine 
whether to disapprove the proposed rule change.
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    \7\ 15 U.S.C. 78s(b)(2) (2010), amended by Section 916 of Pub. 
L. 111-203, 124 Stat. 1376 (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)(31).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-587 Filed 1-12-12; 8:45 am]
BILLING CODE 8011-01-P