[Federal Register Volume 69, Number 48 (Thursday, March 11, 2004)]
[Notices]
[Pages 11686-11687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5552]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49363; File No. SR-FICC-2004-03]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Deleting the Government Securities Division's Late Trade Data 
Submission Fine and Amending the Government Securities Division's 
Clearing Fund Rule

March 4, 2004.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 19, 2004, 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. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested parties.
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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 purpose of the proposed rule change is to (i) delete the Late 
Trade Data Submission Fine from the rules of the Government Securities 
Division (``GSD'') and (ii) amend GSD's clearing fund rule.

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.\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

Late Trade Data Submission Fine Deletion
    On November 14, 2001, the Government Securities Clearing 
Corporation (``GSCC''), FICC's predecessor, received Commission 
approval to fine members for submitting trade data after GSCC's 8:00 
p.m. (New York time) trade data submission deadline.\3\ The fine 
schedule was originally drafted and approved when many members were 
still submitting trade data in single batches at the end of the 
business day. GSCC did not implement the fine schedule because at the 
time of approval a majority of its members had begun submitting trade 
data in real-time. The fine schedule is no longer necessary, and FICC 
desires to delete it from GSD's rules.
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    \3\ Securities Exchange Act Release No. 45053 (November 14, 
2001), 66 FR 58771 [File No. SR-GSCC-00-09].
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Clearing Fund Rule Amendment
    On July 21, 2003, FICC received Commission approval to reduce the 
permitted use of letters of credit from 70 percent to 25 percent of a 
GSD member's required clearing fund deposit.\4\ The reference to ``70'' 
percent in Rule 4, Section 4 was amended in the approved filing, and 
FICC is seeking to amend the other reference to ``70'' percent in Rule 
4, Section 10 that was inadvertently overlooked.
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    \4\ Securities Exchange Act Release No. 48200 (July 21, 2003), 
68 FR 44130 [File No. SR-GSCC-2002-11].
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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 relating to the deleted fine has become 
effective upon filing pursuant to Section 19(b)(3)(A)(ii) of the Act 
\5\ and Rule 19b-4(f)(2) \6\ thereunder because the proposed rule 
establishes or changes a due, fee, or other charge. The foregoing rule 
change relating to the amended clearing fund rule has become effective 
upon filing pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and 
Rule 19b-4(f)(4) \8\ thereunder because the proposed rule change 
effects a change in an existing service of FICC that (i) does not 
adversely affect the safeguarding of securities or funds in the custody 
or control of FICC or for which it is responsible and (ii) does not 
significantly affect the respective rights or obligations of FICC or 
its members using the service. At any time within sixty days of the 
filing of such 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).
    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 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 
change is consistent with the Act. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-FICC-2004-03. 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 
either hardcopy or by e-mail but not by both methods. 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

[[Page 11687]]

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, 450 Fifth Street, NW., Washington, DC 20549-0609. 
Copies of such filing also will be available for inspection and copying 
at the principal office of FICC 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-2004-03 and should be submitted by April 1, 2004.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 04-5552 Filed 3-10-04; 8:45 am]
BILLING CODE 8010-01-P