[Federal Register Volume 70, Number 112 (Monday, June 13, 2005)]
[Notices]
[Pages 34169-34170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3049]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51789; File No. SR-FICC-2005-09]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing of a Proposed Rule Change Relating to the Collection 
of Fees for Services Provided by Other Entities

June 6, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 3, 2005, 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. 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change would amend FICC's rules to allow FICC to 
collect fees for services provided by unregulated subsidiaries of The 
Depository Trust and Clearing Corporation (``DTCC'') and by other 
entities.

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.\2\
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    \2\ The Commission has modified parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    FICC is a subsidiary of DTCC. Members of FICC and their affiliates 
may from time to time utilize the services of DTCC subsidiaries that 
are not registered as clearing agencies with the Commission. Such 
subsidiaries include Global Asset Solutions LLC and DTCC Deriv/Serv 
LLC. In addition, members of FICC and their affiliates may utilize the 
services of other third parties. FICC has determined that it would be 
more efficient and less costly if the fees that members agree to pay 
for such services were collected by FICC rather than through 
independent billing mechanisms that would otherwise have to be 
established by each subsidiary of DTCC and third party that is not a 
registered clearing agency.
    FICC's rules currently allow for fee collection arrangements with 
respect to collection of fees from members. The proposed rule change 
would further clarify this practice and would facilitate collection of 
fees with respect to affiliates of members.\3\ FICC will enter into 
appropriate agreements with such subsidiaries and others regarding the 
collection of fees.
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    \3\ FICC currently has such fee collection arrangements with The 
Bond Market Association (``TMBA'') pursuant to specific rules 
provisions. FICC continues to collect fees on behalf of TBMA; 
however, pursuant to this filing, the existing rules provisions 
which govern the TBMA arrangement will be replaced with broader 
language intended to cover all such fee collection arrangements 
entered into by FICC.
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    FICC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder because FICC will implement the service in a manner whereby 
FICC will be able to assure the safeguarding of securities and funds 
which are in its custody or control or for which it is responsible.

[[Page 34170]]

(B) Self-Regulatory Organization's Statement on Burden on Competition

    FICC does not believe that the proposed rule change would 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 been 
solicited or received.

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

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    (a) By order approve the proposed rule change, or
    (b) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2005-09 on the subject line.

Paper comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-FICC-2005-09. 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, 100 F Street, 
NE., 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 http://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-2005-09 and should be submitted on 
or before July 5, 2005.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-3049 Filed 6-10-05; 8:45 am]
BILLING CODE 8010-01-P