[Federal Register Volume 71, Number 12 (Thursday, January 19, 2006)]
[Notices]
[Pages 3141-3142]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-539]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53106; File No. SR-FICC-2005-21]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Revise the Fee Structures of the Government Securities Division and 
the Mortgage-Backed Securities Division

January 11, 2006.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 22, 2005, 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. 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\ whereby the proposal became effective upon filing with the 
Commission. 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).
    \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

    FICC is revising the fee structures of its Government Securities 
Division (``GSD'') and Mortgage-Backed Securities Division (``MBSD'').

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.\4\
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    \4\ 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 proposed rule change updates certain provisions of the fee 
structures of the GSD and the MBSD. The fee structures are modified as 
follows:
1. GSD Fee Structure Revisions
    (a) Trade Submission. The charge for submitting trade data to the 
GSD is revised from $.50 per submission to $.30 per submission.
    (b) Communication Corrections. Language pertaining to the 
implementation of a new communications framework is deleted since FICC 
plans to utilize the communications feature of its parent company, The 
Depository Trust & Clearing Corporation.
    (c) Netting Fee. The fixed component of the netting fee is revised 
from $.43 per side to $.16 per side. The fixed netting fee along with 
an existing variable component of $.012 per $1 million par value will 
be extended to apply to the netting of outstanding fail obligations 
with current settlement activity.
2. MBSD Fee Structure Revisions
    (a) Broker Trade Processing. The charge for Broker Give-up Trade 
Creates is revised from $.25 per side to $.20 per side.
    (b) Dealer Trade Processing. The monthly charge for Dealer Trade 
Creates for SBO Destined Trades is revised as follows:

------------------------------------------------------------------------
                                                  Current      Revised
            Number of trade creates                charge       charge
                                                    (MM)         (MM)
------------------------------------------------------------------------
1-2,500.......................................        $2.00        $1.68
2,501-5,000...................................         1.85         1.56
5,001-7,500...................................         1.70         1.43
7,501-10,000..................................         1.60         1.35
10,001-12,500.................................         1.45         1.22
12,501 & over.................................         1.30         1.09
------------------------------------------------------------------------

    Also, the charges for both Dealer Trade-for-Trade Trade Creates and 
Dealer Option Trade Creates are revised from $2.50 per side to $2.25 
per side.
    (c) Electronic Pool Notification (``EPN'') Message Processing Fees. 
MBSD's EPN Message Processing Fees are modified as follows:
    (1) The fee for a Notification Send from the Opening of Business to 
1 p.m. is revised from $.25 per million current

[[Page 3142]]

face value to $.15 per million current face value.
    (2) The fee for a Notification Send from 1 p.m. to 2 p.m. is 
revised from $1.25 per million current to $.75 per million current face 
value.
    (3) The fee for a Notification Receive from Opening of Business to 
1 p.m. is revised from $.50 per million current face value to $.40 per 
million current face value.
    (4) The fee for a Notification Receive from 1 p.m. to 2 p.m. or 2 
p.m. to 3 p.m. is revised from $.25 per million current face value to 
$.20 per million current face value.
    (5) The fee for (i) a Notification Send from 2 p.m. to 3 p.m. or 3 
p.m. to Close of Business and (ii) a Notification Receive from 3 p.m. 
to Close of Business remains unchanged.
    FICC believes the proposed rule change is consistent with the 
requirements of section 17A of the Act \5\ and the rules and 
regulations thereunder applicable to FICC because it clarifies and 
updates FICC's fee schedule. As such, it provides for the equitable 
allocation of fees among its participants and aligns fees for services 
with the associated cost to deliver the service.
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    \5\ 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 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 proposed rule change has become effective upon filing 
pursuant to section 19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) 
\7\ thereunder because the rule establishes a due, fee, or other 
charge. At any time within sixty 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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-2005-21 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-FICC-2005-21. 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, 100 F Street, 
NE., Washington, DC 20549. Copies of such filings 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-2005-21 and should be submitted on 
or before February 9, 2006.
    For the Commission by the Division of Market Regulation, pursuant 
to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).

Nancy M. Morris,
Secretary.
[FR Doc. E6-539 Filed 1-18-06; 8:45 am]
BILLING CODE 8010-01-P