Document ID: SEC-2009-0691-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; The Depository Trust Company, Fixed Income Clearing Corporation, and National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Relating to Economic Sanctions and Embargo Programs Administered and Enforced by the Office of Foreign Assets Control
Posted Date: 2009-05-21T04:00Z

[Federal Register: May 21, 2009 (Volume 74, Number 97)]
[Notices]               
[Page 23907-23908]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21my09-134]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59917; File Nos. SR-DTC-2009-07, SR-FICC-2009-06, SR-
NSCC-2009-03]

 
Self-Regulatory Organizations; The Depository Trust Company, 
Fixed Income Clearing Corporation, and National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Changes Relating to Economic Sanctions and Embargo Programs 
Administered and Enforced by the Office of Foreign Assets Control

May 14, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 31, 2009, April 1, 
2009, and April 22, 2009, the Fixed Income Clearing Corporation 
(``FICC''), the National Securities Clearing Corporation (``NSCC''), 
and The Depository Trust Company (``DTC''), respectively, filed with 
the Securities and Exchange Commission (``Commission'') the proposed 
rule change as described in Item I, II, and III, below, which Items 
have been prepared primarily by FICC, NSCC, and DTC (collectively, 
``Clearing Agencies''). The Clearing Agencies filed the proposed rule 
changes pursuant to Section 19(b)(3)(A)(iii) of the Act \2\ and Rule 
19b-4(f)(4) thereunder \3\ 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organizations' Statement of Terms of Substance of 
the Proposed Rule Changes

    The Clearing Agencies are adding language to their rules to make 
clear that the Clearing Agencies' participants, members, and pledgees 
(collectively, ``members'') must comply with the U.S. Department of the 
Treasury's Office of Foreign Asset Control's (``OFAC'') sanctions and 
embargo programs and as part of their compliance with OFAC sanctions 
regulations must agree not to conduct any transaction or activity 
through the Clearing Agencies that violate OFAC regulations.

II. Self-Regulatory Organizations' Statement of Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    In their filing with the Commission, the Clearing Agencies included 
statements concerning the purpose of and basis for the proposed rule 
changes and discussed any comments they received on the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. The Clearing Agencies have prepared 
summaries, set forth in Section A, B, and C below, of the most 
significant aspects of such statements.

A. Self-Regulatory Organizations' Statement of Purpose of, and 
Statutory Basis for, the Proposed Rule Changes

    The purpose of these rule filings is to add new language to the 
Clearing Agencies' rules \4\ to clarify that the Clearing Agencies' 
members must comply with OFAC's sanctions and embargo programs and as 
part of their compliance with OFAC sanctions regulations must agree not 
to conduct any transaction or activity through the Clearing Agencies 
that violate such OFAC regulations.
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    \4\ FICC is amending Government Securities Division Rule 3, 
Section 9, and Mortgage-Backed Securities Division Article III, Rule 
1, Section 7. NSCC is amending Rule 2, Section 4. DTC is amending 
Rule 2, Section 8.
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    In addition, members subject to United States jurisdiction must 
confirm to the Clearing Agencies that it has implemented a risk-based 
OFAC compliance program. The Clearing Agencies will require each member 
to execute a ``Confirmation of an OFAC Program'' letter (``OFAC 
Letter''), which will serve to confirm that the member has 
``implemented a risk-based program reasonably designed to comply with 
applicable OFAC sanctions regulations.'' \5\ Each U.S. member's OFAC 
Compliance Officer, Chief Compliance Officer, or other individual with 
responsibility for managing the OFAC compliance program will be 
required to submit the OFAC Letter at least every two years.\6\ Failure 
to properly submit the OFAC Letter to the Clearing Agencies will result 
in a $5,000 fine.
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    \5\ The OFAC Letter is not intended to reallocate legal 
liability related to the sanctions administered and enforced by 
OFAC.
    \6\ The form of the OFAC Letter is attached to each of the 
clearing agencies' rule filings with the Commission.
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    The Clearing Agencies state that the proposed rule changes are 
consistent with the requirements of Section 17A of the Act \7\ and the 
rules and regulations thereunder because such changes will enhance the 
Clearing Agencies' ability to comply with applicable laws thereby 
reducing risks and associated costs to the Clearing Agencies and their 
participants.
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    \7\ 15 U.S.C. 78q-1.

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[[Page 23908]]

B. Self-Regulatory Organizations' Statement on Burden on Competition

    The Clearing Agencies do not believe that the proposed rule changes 
will have any impact on or impose any burden on competition.

C. Self-Regulatory Organizations' Statement on Comments on the Proposed 
Rule Changes Received From Members, Participants, or Others

    The Clearing Agencies have not solicited or received written 
comments relating to the proposed rule changes. The Clearing Agencies 
will notify the Commission of any written comments they receive.

III. Date of Effectiveness of the Proposed Rule Changes and Timing for 
Commission Action

    The foregoing rule changes have become effective upon filing 
pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-
4(f)(4) \9\ thereunder because each of the proposed rule changes 
effects a change in an existing service of one of the Clearing Agencies 
that (i) does not adversely affect the safeguarding of securities or 
funds in the custody or control of the Clearing Agencies or for which 
it is responsible and (ii) does not significantly affect the respective 
rights of the clearing agencies or persons using the service. At any 
time within sixty days of the filing of such rule changes, the 
Commission may summarily abrogate such rule changes 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(4).
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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 
changes are 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 No. SR-FICC-2009-06, SR-NSCC-2009-03, or SR-DTC-2009-07 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-FICC-2009-06, SR-NSCC-2009-
03, or DTC-2009-07. 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 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 
FICC's, NSCC's, and DTC's principal office and on FICC's, NSCC's, and 
DTC's Web sites, respectively at http://ficc.com/gov/gov.docs.jsp?NS-
query=#rf, http://www.dtcc.com/legal/rule_filings/nscc/2009.php, and 
http://www.dtc.org/impNtc/mor/index.html. 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-FICC-2009-06, SR-NSCC-2009-03, or DTC-2009-
07 and should be submitted on or before June 11, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-11808 Filed 5-20-09; 8:45 am]

BILLING CODE 8010-01-P