Notice2024-03775
Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Partial Amendment No. 1 and Amendment No. 2, To Modify the Amended and Restated Stock Options and Futures Settlement Agreement and Make Certain Revisions to the NSCC Rules
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 26, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 38 (Monday, February 26, 2024)</title>
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[Federal Register Volume 89, Number 38 (Monday, February 26, 2024)]
[Notices]
[Pages 14122-14123]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-03775]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99567; File No. SR-NSCC-2023-007]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Designation of Longer Period for Commission
Action on Proceedings To Determine Whether To Approve or Disapprove a
Proposed Rule Change, as Modified by Partial Amendment No. 1 and
Amendment No. 2, To Modify the Amended and Restated Stock Options and
Futures Settlement Agreement and Make Certain Revisions to the NSCC
Rules
February 20, 2024.
On August 10, 2023, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') proposed rule change SR-NSCC-2023-007 (``Proposed Rule
Change'') pursuant to Section 19(b) of the Securities Exchange Act of
1934 (``Exchange Act'') \1\ and Rule 19b-4 \2\ thereunder to modify the
Amended and Restated Stock Options and Futures Settlement Agreement
dated August 5, 2017, between NSCC and the Options Clearing Corporation
(``OCC'') and make certain revisions to NSCC's related Rules &
Procedures.\3\ The Proposed Rule Change was published for public
comment in the Federal Register on August 30, 2023.\4\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Capitalized terms not defined herein are defined in the NSCC
Rules. The NSCC Rules are available at <a href="http://www.dtcc.com/-/media/Files/Downloads/legal/rules/nscc_rules.pdf">www.dtcc.com/-/media/Files/Downloads/legal/rules/nscc_rules.pdf</a>.
\4\ Securities Exchange Act Release No. 98213 (Aug. 24, 2023),
88 FR 59968 (Aug. 30, 2023) (File No. SR-NSCC-2023-007) (``Notice of
Filing'').
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On September 25, 2023, pursuant to section 19(b)(2) of the Exchange
Act,\5\ the Commission designated a longer period within which to
approve, disapprove, or institute proceedings to determine whether to
approve or disapprove the Proposed Rule Change.\6\ On November 8, 2023,
NSCC filed a Partial Amendment No. 1 to the Proposed Rule Change.\7\ On
November 14, 2023, the Commission published notice of Partial Amendment
No. 1 and instituted proceedings, pursuant to section 19(b)(2)(B) of
the Exchange Act,\8\ to determine whether to approve or disapprove the
proposed rule change, as modified by the Partial Amendment No. 1.\9\ On
January 24, 2024, NSCC filed Amendment No. 2 to the Proposed Rule
Change, which was published in the Federal Register for public comment
on January 31, 2024.\10\ The Commission has received no comments
regarding the substance of the Proposed Rule Change.\11\
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\5\ 15 U.S.C. 78s(b)(2).
\6\ Securities Exchange Act Release No. 98508 (Sep. 25, 2023),
88 FR 67407 (Sep. 29, 2023) (File No. SR-NSCC-2023-007).
\7\ Partial Amendment No. 1 delays implementation of the
proposed change; however, Partial Amendment No. 1 was amended and
replaced by Amendment No. 2. See Notice of Amendment infra note 10,
at 89 FR 6140.
\8\ 15 U.S.C. 78s(b)(2)(B).
\9\ Securities Exchange Act Release No. 98930 (Nov. 14, 2023),
88 FR 80790 (Nov. 20, 2023) (File No. SR-NSCC-2023-007).
\10\ Securities Exchange Act Release No. 99432 (Jan. 25, 2024),
89 FR 6140 (Jan. 31, 2024) (File No. SR-NSCC-2023-007) (``Notice of
Amendment''). Amendment No. 2 adds a second phase of changes to the
proposed rule change. The changes added in Phase 2 include improved
information sharing between OCC and NSCC and are designed to
facilitate the shortening of the standard settlement cycle for most
broker-dealer transactions from T+2 to T+1. See Securities Exchange
Act Release No. 96930 (Feb. 15, 2023), 88 FR 13872 (Mar. 6, 2023)
(File No. S7-05-22).
\11\ The Commission received comments expressing general
concerns unrelated to the substance of the filing. See, e.g.,
comments from JT Clark (Oct. 10, 2024) (general concern about
corruption in the markets) and Anthony LaBree (Oct. 12, 2024)
(concerns about OCC's business practices). Comments are available at
<a href="https://www.sec.gov/comments/sr-nscc-2023-007/srnscc2023007.htm">https://www.sec.gov/comments/sr-nscc-2023-007/srnscc2023007.htm</a>.
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[[Page 14123]]
Section 19(b)(2) of the Exchange Act \12\ provides that proceedings
to determine whether to approve or disapprove a proposed rule change
must be concluded within 180 days of the date of publication of notice
of filing of the proposed rule change. The time for conclusion of the
proceedings may be extended for up to 60 days if the Commission
determines that a longer period is appropriate and publishes the
reasons for such determination.\13\ The 180th day after publication of
the Notice in the Federal Register is February 26, 2024.
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\12\ 15 U.S.C. 78s(b)(2).
\13\ 15 U.S.C 78s(b)(2)(B)(ii)(II).
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The Commission is extending the period for Commission action on the
Proposed Rule Change, as modified by Partial Amendment No. 1 and
Amendment No. 2 (hereinafter, the ``Proposed Rule Change''). The
Commission finds that it is appropriate to designate a longer period
within which to take action on the Proposed Rule Change so that the
Commission has sufficient time to consider the issues raised by the
Proposed Rule Change and to take action on the Proposed Rule Change.
Accordingly, pursuant to section 19(b)(2)(B)(ii)(II) of the Exchange
Act,\14\ the Commission designates April 26, 2024, as the date by which
the Commission should either approve or disapprove the Proposed Rule
Change SR-NSCC-2023-007.
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\14\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(57).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-03775 Filed 2-23-24; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on February 26, 2024.
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