[Federal Register Volume 69, Number 41 (Tuesday, March 2, 2004)]
[Notices]
[Pages 9887-9888]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4572]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49316; File No. SR-FICC-2003-11]


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

February 24, 2004.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on October 30, 2003, the 
Fixed Income Clearing Corporation (``FICC'') filed with the Securities 
and Exchange Commission (``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
primarily by FICC. On October 30, 2003, FICC also filed an amendment to 
the proposed rule change. The Commission is publishing this notice to 
solicit comments on the proposed rule change, as amended, from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
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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 modify the rules of FICC's Government 
Securities Division (``GSD'') and the Mortgage-Backed Securities 
Division (``MBSD'') so that notices disseminated to members in an 
electronic format will satisfy each Division's notification 
obligations.

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

[[Page 9888]]

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.\2\
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    \2\ 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, GSD's rules require Important Notices to be delivered to 
members in hard copy format via U.S. mail, facsimile, or by hand 
delivery only when specifically requested in writing by a member. 
MBSD's rules do not currently provide for a specific method of 
delivering Important Notices to members.
    FICC believes that delivering Important Notices by e-mail is an 
effective and timely method of communicating important information to 
members. FICC now proposes to change the GSD's and MBSD's rules in an 
identical manner so that GSD and MBSD have explicit authority to do so.
    In addition to the above, FICC proposes to amend GSD's rules to (i) 
eliminate the provision that allows members to request hand delivery of 
Important Notices and (ii) permit delivery of notices to members by 
posting the notices on FICC's Web site and have these postings satisfy 
FICC's notification obligations. FICC believes that given the other 
methods of providing notices, hand delivery is no less optimal because 
it is a burdensome process for both FICC and members. No FICC member 
has requested hand-delivery of Important Notices. Members will be able 
to readily access all FICC important notices by accessing FICC's Web 
site at http://www.ficc.com.
    FICC believes that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
because it will facilitate the timely dissemination of information 
necessary for participation in FICC's services.

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

    FICC has not solicited or received written comments relating to the 
proposed rule change. FICC will notify the Commission of any written 
comments it receives.

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)(iii) of the Act \3\ and Rule 19b-4(f)(3)\4\ thereunder 
because it is concerned solely with the administration of FICC. At any 
time within 60 days of the filing of such proposed rule change, the 
Commission could have summarily abrogated such rule change if it 
appeared to the Commission that such action was 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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    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 200.19b-4(f)(3)(iii).
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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. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 5th Street NW., Washington, DC 20549-0069. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-FICC-2003-11. 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, comments should be sent in 
hardcopy or by e-mail but not by both methods. Copies of the 
submission, all subsequent amendments, all written statements with 
respect to the rule filing that are filed with the Commission, and all 
written communications relating to the rule filing between the 
Commission and any person, other than those that may be withheld from 
the public in accordance with provisions of 5 U.S.C. 552, will be 
available for inspection and copying in the Commission's Public 
Reference Room in Washington, DC. Copies of such filing will also be 
available for inspection and copying at FICC's principal office and on 
FICC's Web site at http://www.ficc.com/gov/gov.docs.jsp?NS-query=. All 
submissions should refer to File No. SR-FICC-2003-11 and should be 
submitted by March 23, 2004.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-4572 Filed 3-1-04; 8:45 am]
BILLING CODE 8010-01-P