[Federal Register Volume 77, Number 161 (Monday, August 20, 2012)]
[Notices]
[Pages 50198-50199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-20398]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67653; File No. SR-FICC-2012-06]


Self-Regulatory Organizations; The Fixed Income Clearing 
Corporation; Notice of Filing Proposed Change To Move the Time at Which 
the Mortgage-Backed Securities Division Runs Its Daily Morning Pass

August 14, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on August 6, 2012, the Fixed Income Clearing Corporation 
(``FICC'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed 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 change 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Change

    FICC proposes to move the time at which its Mortgage-Backed 
Securities Division (``MBSD'') runs its first processing pass of the 
day from 2 p.m. to 4 p.m. Eastern Standard Time. The proposed change 
does not require revisions to MBSD's rules because those rules do not 
address the times of MBSD's processing passes. Even so, FICC is 
notifying its members and the public of the proposed change via this 
filing in an effort to provide them with adequate notice.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Change

    In its filing with the Commission, FICC included statements 
concerning the purpose and basis for the proposed change and discussed 
any comments it received on the proposed change. The text of these 
statements and comments 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.\3\
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    \3\ The Commission has modified the text of the summaries 
provided by FICC.
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A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Change

    The purpose of this filing is to notify members that MBSD intends 
to move the time at which it runs its first processing pass of the day 
(historically referred to as the ``AM Pass'') from 2 p.m. to 4 p.m. 
Eastern Standard Time. MBSD also executes an evening pass (referred to 
as the ``PM Pass'') at 8 p.m. Eastern Standard Time, which will remain 
unchanged. On days when MBSD executes its To-Be-Announced Netting 
cycle, this cycle immediately follows the completion of the first pass 
of the day. The proposed change to 4 p.m. for the first pass of the day 
will allow more trades to be included into the To-Be-Announced Net, 
which will assist in reducing both the amount of fails in the market 
and 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. MBSD advised members of the 
proposed change via Important Notice dated August 1, 2012.
    The proposed change does not require amendments to the text of the 
Rules of the MBSD. The effective date of this change will be announced 
to MBSD members via Important Notice, and is anticipated to be November 
2, 2012, subject to the Commission's approval.
    FICC believes the proposed change is consistent with the 
requirements of the Act, including Section 17A,\4\ and the rules and 
regulations thereunder applicable to FICC. Specifically, FICC believes 
the proposed change will foster the prompt and accurate clearance and 
settlement of securities transactions because a greater proportion of 
transactions will be included in the net, fewer fails will result, and 
operational risk will therefore be reduced.
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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 change will have any 
impact, or impose any burden, on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Change Received From Members, Participants, or Others

    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

    Within 45 days of the date of publication of this notice in the 
Federal Register, or within such longer period up to 90 days (i) as the 
Commission may designate 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 or disapprove the proposed change, or
    (B) Institute proceedings to determine whether the proposed 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 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:
     Electronic comments may be submitted by using the 
Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or by sending an email to [email protected]. Please 
include File No. SR-FICC-2012-06 on the subject line.
     Paper comments should be sent in triplicate to Elizabeth 
M. Murphy, Secretary, Securities and Exchange

[[Page 50199]]

Commission, 100 F Street NE., Washington, DC 20549-0609.
    All submissions should refer to File Number SR-FICC-2012-06. To 
help the Commission process and review your comments more efficiently, 
please use only one method of submission. 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 change that are 
filed with the Commission, and all written communications relating to 
the proposed 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 Room, 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 filing also will be available for 
inspection and copying at the principal office of FICC and on FICC's 
Web site at: http://www.dtcc.com/downloads/legal/rule_filings/2012/ficc/SR-FICC-2012-06.pdf.
    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-2012-06 and 
should be submitted on or before September 10, 2012.
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    \5\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-20398 Filed 8-17-12; 8:45 am]
BILLING CODE 8011-01-P