[Federal Register Volume 76, Number 49 (Monday, March 14, 2011)]
[Notices]
[Pages 13683-13684]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5773]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64053; File No. SR-FICC-2011-01]


Self-Regulatory Organizations; The Fixed Income Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change To Notify Participants That the Mortgage Backed Securities 
Division Intends To Move the Time at Which It Runs Its Daily Morning 
Pass

March 8, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 2, 2011, the Fixed 
Income Clearing Corporation (``FICC'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I and II below, which items have been prepared 
primarily by FICC. The Commission is publishing this notice to solicit 
comments 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 purpose of the proposed rule change is to notify participants 
that the Mortgage Backed Securities Division (``MBSD'') intends to move 
the time at which it runs its daily morning pass (also referred to as 
the ``AM Pass'') from 10:30 a.m. to 2 p.m. (EST).

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 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 this filing is to notify participants that MBSD 
intends to move the time at which it runs its daily morning pass from 
10:30 a.m. to 2 p.m. (EST).\3\ The proposed change to 2 p.m. for the 
morning pass will allow more trades to be included into the TBA Net and 
therefore will assist in reducing the amount of fails in the market in 
addition to reducing the related operational risk. The above change is 
being made at the request of The Securities Industry and Financial 
Markets Association (``SIFMA'') MBS Operations Committee. In addition, 
MBSD reviewed the potential change with member firms not represented on 
the SIFMA Committee, and no objections were raised.
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    \3\ MBSD also executes an evening pass (also referred to as the 
``PM Pass'') at 8 p.m. (EST) that will remain unchanged. On days 
where MBSD executes its TBA Netting cycle, it immediately follows 
the completion of the morning pass.
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    The effective date of this change will be announced to MBSD 
participants by Important Notice.
    FICC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \4\ and the rules and 
regulations thereunder applicable to FICC because it should provide for 
the prompt and accurate clearance and settlement of securities 
transactions by including a greater proportion of transactions in the 
TBA netting cycle. Additionally, the proposed rule change should result 
in fewer fails, and reduced operational risk.
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    \4\ 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 any 
impact on 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

    No 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)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ 
thereunder because the proposed rule effects a change in an existing 
service 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 persons using the service. At any time 
within sixty days of the filing of such rule change, the Commission 
summarily may temporarily suspend 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)(iii).
    \6\ 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. 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-2011-01 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-FICC-2011-01. 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

[[Page 13684]]

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 
changes 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 Web site viewing and printing in the Commission's Public 
Reference Section, 100 F Street, NE., Washington, DC 20549, on official 
business days between the hours of 10 a.m. and 3 p.m. 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-2011-01 
and should be submitted on or before April 4, 2011.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5773 Filed 3-11-11; 8:45 am]
BILLING CODE 8011-01-P