[Federal Register Volume 70, Number 22 (Thursday, February 3, 2005)]
[Notices]
[Pages 5711-5713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-408]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51093; File No. SR-FICC-2004-24]


Self-Regulatory Organizations; Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change To Amend the Fee Structure of the 
Government Securities Division of the Fixed Income Clearing Corporation

January 28, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 30, 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

[[Page 5712]]

solicit comments on the proposed rule change from interested parties.

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change
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    \1\ 15 U.S.C. 78s(b)(1).
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    The proposed rule change consists of amendments to the fee 
structure of the Government Securities Division (``GSD'') of FICC to 
clarify and update certain provisions of the fee structure for GSD's 
services.

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

    The purpose of the proposed rule change is to amend the fee 
structure of the GSD to clarify and/or update certain provisions.
(1) Trade Submission
    The proposed change deletes references to outdated submission modes 
such as magnetic tape output and paper output and makes clear that 
there is a $0.50 charge for submitting trade data to the GSD. The 
proposed change also clarifies that a trade submission that is rejected 
because it failed to pass the necessary edit checks (other than a valid 
contra side) will not be charged the submission fee but will be charged 
a rejection fee.
(2) Surcharge for Trade Submission Method
    The proposed change clarifies that the surcharges that are imposed 
for failure to use the interactive submission method are based on 
submission method as opposed to whether the trade is submitted to the 
GSD within one hour of execution.
(3) Demand and Locked-In Trade Submissions
    The proposed change makes clear that the fee for processing and 
reporting demand and locked-in trades is applied per $50 million 
increment, which is the way in which trades other than GCF Repo trades 
are required to be submitted.
(4) Trade Advisories
    The proposed change deletes a provision from the fee structure 
regarding charges for advisories under certain circumstances as that 
fee is no longer being applied.
(5) Communication Connections
    The communication fees currently listed in the fee structure have 
become outmoded, and FICC is removing them from the fee structure. In 
the near future, a new communications framework will be implemented 
which will include revised fees. FICC will file with the Commission a 
new communication fee arrangement as more details on such 
implementation become available.
(6) Auction Takedown Process Fees
    The proposed change restructures the provisions on the auction 
takedown process so that they are all contained within one section.
(7) Repo Collateral Substitution Fees
    Members are currently billed the repo collateral substitution fee 
by being charged a submission fee ($.50) plus a modification fee 
($.25). The proposed change specifies more clearly that the fee for 
repo collateral substitutions is $.75.
    The proposed changes will become effective on January 1, 2005.
    FICC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \3\ and the rules and 
regulations thereunder applicable to FICC because the proposed rule 
change provides for the equitable allocation of dues, fees, and other 
charges among FICC's participants.
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    \3\ 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 an 
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 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 upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) \5\ 
thereunder because the proposed rule establishes or changes a due, fee, 
or other charge. 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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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 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 [email protected]. Please include 
File Number SR-FICC-2004-24 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.

All submissions should refer to File Number SR-FICC-2004-21. 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 Section, 450 Fifth Street, 
NW.,

[[Page 5713]]

Washington, DC 20549. 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 www.ficc.com. 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-2004-24 and should be submitted on or before February 24.
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    \6\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
Margaret H. McFarland,
Deputy Secretary.
 [FR Doc. E5-408 Filed 2-2-05; 8:45 am]
BILLING CODE 8010-01-P