Document ID: SEC-2009-0998-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Schedules
Posted Date: 2009-07-20T04:00Z

[Federal Register: July 20, 2009 (Volume 74, Number 137)]
[Notices]               
[Page 35218-35219]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20jy09-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60298; File No. SR-FICC-2008-07]

 
Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Fee Schedules

July 13, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 31, 2009, the 
Fixed Income Clearing Corporation (``FICC'') filed with the Securities 
and Exchange Commission (``Commission'') and on January 12, 2009, May 
11, 2009, and June 24, 2009, amended the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
primarily by FICC. FICC filed the proposed rule change pursuant to 
Section 19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) thereunder 
\3\ so that the proposal was effective upon filing with the Commission. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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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 will amend FICC's Government Securities 
Division's (``GSD'') and Mortgage Backed Securities Division's 
(``MBSD's'') fees.

[[Page 35219]]

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 such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of this filing is to amend GSD's and MBSD's fees.
1. GSD Trade Submission
    The GSD fee structure currently charges $.30 per submission of a 
side of a trade or submission of a Repo Transaction. FICC is modifying 
this fee by reducing this charge according to the following volume-
based fee structure:
    (a) $.16 per submission for up to 50,000 submissions per month.
    (b) $.08 per submission for 50,001 to 100,000 submissions per 
month.
    (c) $.01 per submission for 100,001 or greater submissions per 
month.
2. GSD Netting Fee
    The GSD fee structure currently provides that the charge for each 
Deliver Obligation and Receive Obligation created as a result of the 
netting process is a fee of $0.052 per $1 million of par value. This 
fee is being increased to $0.06 per $1 million.
3. GSD Demand and Locked-In Trade Data
    Data received by FICC on a demand or locked-in basis from a Demand 
Trade Source or a Locked-in Trade Source related to a side of a trade 
or Repo Transaction entered into by a member or entered into by a non-
member for which the member is clearing results in a charge for 
processing and reporting by FICC to the member of $0.50 per $50 million 
increment of such side or Repo Transaction. This fee is being reduced 
to $0.16 per $50 million increment of such side or Repo Transaction.
4. MBSD Trade Processing
    FICC is reducing the MBSD Trade Processing fees for trade creates 
as follows:

------------------------------------------------------------------------
                     Items                          From          To
------------------------------------------------------------------------
01-2,500......................................     $1.58/MM     $1.44/MM
2,501-5,000...................................      1.46/MM      1.32/MM
5,001-7,500...................................      1.33/MM      1.19/MM
7,501-10,000..................................      1.25/MM      1.11/MM
10,001-12,500.................................      1.12/MM      0.98/MM
12,501 and over...............................      0.99/MM      0.85/MM
------------------------------------------------------------------------

    FICC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \4\ and the rules and 
regulations thereunder because it updates FICC's fee schedule and 
provides for the equitable allocation of fees among its participants.
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    \4\ 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 rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2) \6\ thereunder 
because it establishes or changes a due, fee, or other charge 
applicable only to a member. At any time within 60 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 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-comment@sec.gov. Please include 
File No. SR-FICC-2008-07 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-2008-07. 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. to 3 p.m. Copies of such filing also will be available for 
inspection and copying at FICC's principal office and on FICC's Web 
site at http://ficc.com/gov/gov.docs.jsp?NS-query=#rf. 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 SR-FICC-2008-07 and should be submitted on 
or before August 10, 2009.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
Florence E. Harmon,
Deputy Secretary.
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    \7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. E9-17137 Filed 7-17-09; 8:45 am]

BILLING CODE 8010-01-P