[Federal Register Volume 59, Number 63 (Friday, April 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7824]


[[Page Unknown]]

[Federal Register: April 1, 1994]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33819; File No. SR-NSCC-94-04]

 

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Filing and Immediate Effectiveness of a Proposed Rule 
Change Establishing a Fee for Printed Output Reports

March 25, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 14, 1994, the 
National Securities Clearing Corporation (``NSCC'') 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 primarily prepared by NSCC. The Commission is publishing this 
notice to solicit comments on the proposed rule changes from interested 
persons.
---------------------------------------------------------------------------

    \1\15 U.S.C. 78s(b)(1) (1988).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change establishes a fee for printed output 
reports as follows:

Italics indicates additional text
Addendum A
* * * * *
V. Pass-Through and Other Fees
* * * * *
B. Special Service Fees
* * * * *
    5. Output Fees
* * * * *
    f. Printed Output Reports

For Members with less than 20,000    no charge.                         
 lines per month.                                                       
For Members with 20,000 or more      $4.00 per each 1000 lines.\1\      
 lines per month.                                                       
                                                                        
\1\From July 1, 1994 through December 31, 1994, Participants will only  
  be billed $3.00 for each 1000 lines.                                  

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

    In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in Sections (A), 
(B), and (C) below, of the most significant aspects of such statements.

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

    For the past several years NSCC has been encouraging participants 
to reduce or eliminate the need to receive printed output reports and 
instead to accept data by transmission in machine readable or print 
image form. Most significantly, NSCC has sought to reduce or eliminate 
printed output for the following reasons: (1) Printed output is the 
least efficient method to communicate information in terms of both cost 
and time for both NSCC and its participants, (2) it is very expensive 
for NSCC to maintain the excess print capacity to handle sudden surges 
in trading volume, and (3) much of NSCC's printed output duplicates 
data already being transmitted in data and print image format. As a 
result, many firms, large and small, have either totally or largely 
eliminated printed output.
    In order to more equitably allocate the costs associated with the 
remaining printing and distribution of printed output, NSCC's Board of 
Directors has determined to begin charging participants for the 
service. The proposed rule change establishes a fee for all printed 
reports. While the fee will be $4.00 per each one thousand lines, 
during the first six months NSCC will only collect $3.00 per one 
thousand lines. Participants having less than twenty thousand lines of 
print in a month will not be charged. In emergencies, printed output 
for all participants will be available at no charge.
    NSCC believes that the proposal is consistent with section 
17A(b)(3)(D)\2\ of the Act because the proposed rule change will 
provide for a more equitable allocation of fees among participants.
---------------------------------------------------------------------------

    \2\15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule changes will have an 
impact on or impose a 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 have been solicited or received. NSCC will 
notify the Commission of any written comments received by NSCC.

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

    The foregoing rule change has become effective pursuant to section 
19(b)(3)(A)(ii)\3\ of the Act and pursuant to rule 19b-4(e)(2)\4\ in 
that it establishes a fee. At any time within sixty days of the filing 
of such 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.
---------------------------------------------------------------------------

    \3\15 U.S.C. 78s(b)(3)(A)(ii).
    \4\17 CFR 240.19b-4(e)(2) (1993).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. Persons making written submissions 
should file six copies thereof with the Secretary, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
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, 450 Fifth Street, NW., 
Washington, DC 20549. Copies of such filing will also be available for 
inspection and copying at the principal office of NSCC. All submissions 
should refer to File No. SR-NSCC-94-04 and should be submitted by April 
22, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
---------------------------------------------------------------------------

    \5\17 CFR 200.30-3(a)(12) (1993).
---------------------------------------------------------------------------

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-7824 Filed 3-31-94; 8:45 am]
BILLING CODE 8010-01-M