Document ID: SEC-2008-0526-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Fixed Income Clearing Corp.
Posted Date: 2008-04-07T04:00Z

[Federal Register: April 7, 2008 (Volume 73, Number 67)]
[Notices]               
[Page 18835-18836]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ap08-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57596; File No. SR-FICC-2007-11]

 
Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule To Modify 
the Fee Structure of the Government Securities Division Rules Regarding 
GCF Repo Transactions and the Fee Structure of the Mortgage-Backed 
Securities Division Rule Regarding Trade-for-Trade and Settlement 
Balance Order Processing Fees

April 1, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 31, 2007, 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 purpose of the rule change is to modify the fee structure of 
the Government Securities Division (``GSD'') rules regarding GCF Repo 
Transactions and the fee structure of the Mortgage-Backed Securities 
Division (``MBSD'') rules regarding Trade-for-Trade and Settlement 
Balance Order (``SBO'') processing fees.

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

    Currently, the GSD fee schedule indicates the charge for all 
requests to modify or cancel a side of a trade or repo transaction, 
including CGF Repo Transactions, is 25 cents per request. To reflect 
current practice, FICC is proposing to change the charge for requests 
to modify or cancel a side of a GCF Repo Transaction to 5 cents per 
request.
    FICC is also proposing to reduce the MBSD trade processing fee 
charged to dealers engaging in both Trade-for-Trade and SBO processing 
to align the fees with the actual costs to deliver the services. FICC 
is proposing to reduce the fee for Trade-for-Trade Trade Creates from 
$2.25 to $0.50. The fees for SBO Trade Creates are categorized by 
volume of Trade Creates and are based on the par value per million per 
month (``MM''). FICC is proposing to reduce the fee for SBO Trade 
Creates as follows: (i) Between 1-2,500 Trade Creates, from $1,68/MM to 
$1.58/MM; (ii) between 2,501-5,000 Trade Creates, from $1.56/MM to 
$1.46/MM; (iii) between 5,001-7,500 Trade Creates, from $1.43/MM to 
$1.33/MM; (iv) between 7,501-10,000 Trade Creates, from $1.35/MM to 
$1.25/MM; (v) between 10,001-12,500 Trade Creates, from $1.22/MM to 
$1.12/MM; and (vi) 12,501 and over Trade Creates, from $1.09/MM to 
$0.99/MM.
    The proposed rule change is consistent with Section 17A of the 
Act,\5\ as amended, because it reduces a FICC fee and thereby provides 
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 have not yet 
been 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 fee imposed 
by FICC applicable only to members or participants. 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-2007-11 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-FICC-2007-11. 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

[[Page 18836]]

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 FICC and on FICC's Web site at 
http://www.dtcc.com/downloads/legal/rule_filings/2007/ficc/2007-
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-2007-11 and should be submitted on or before April 28, 2008.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
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    \8\ 17 CFR 200.30-3(a)(12).
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 [FR Doc. E8-7119 Filed 4-4-08; 8:45 am]

BILLING CODE 8011-01-P