[Federal Register Volume 59, Number 86 (Thursday, May 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10751]


[[Page Unknown]]

[Federal Register: May 5, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33974; File No. SR-NSCC-94-02]

 

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Relating to the Clearing Fund Formula

April 28, 1994.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 3, 1994, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rules 
change as described in Items I, II, and III below, which Items have 
been prepared primarily by NSCC. The Commission is publishing this 
notice to solicit comments from interested persons on the proposed rule 
change.
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    \1\15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change clarifies that the component of the 
clearing fund formula applicable to usage of NSCC's mutual fund 
services applies to all NSCC members that use such services.

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. 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

    The proposed rule change consists of a technical amendment to the 
clearing fund formula to clearly delineate the clearing fund 
requirements of NSCC's regular clearing members (``clearing members'') 
and NCCC's members that only use the mutual fund services (``mutual 
fund services members''). All NSCC members that use the mutual fund 
services are required to make clearing fund deposits relating to their 
mutual fund services usage. For clearing members, this requirement is 
in addition to their normal clearing fund requirements. Previously, 
clearing members' clearing fund requirements for usage of mutual fund 
services was set forth in NSCC Procedure XV, A. I.(a)(iii). However, in 
the recently approved File No. SR-NSCC-93-11,\2\ NSCC moved this 
clearing fund requirement to Procedure XV, A.I.(b). Because section 
A.I.(b) is entitled ``Clearing Fund Formula for Mutual Fund Services 
Members,'' it is not clear that this requirement applies to both 
clearing members and members that only use the mutual fund services 
members even though the mutual fund services clearing formula refers to 
``Members'' (i.e., clearing members) and even though NSCC intended that 
clearing members remain subject to the mutual fund services clearing 
fund requirement. Accordingly, the proposed rule change is reinserting 
into section A.I.(a), ``Clearing Fund Formula for Members,'' the mutual 
fund services component of the clearing fund formula for the purposes 
of clarity and is limiting section A.I.(b) to mutual fund services 
members.
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    \2\Securities Exchange Act Release No. 33525 (January 26, 1994), 
59 FR 04959, [File No. SR-NSCC-93-11] (order approving a proposed 
rule change relating to capital and clearing fund requirements for 
users of mutual fund services).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will 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 were not and are not intended to be solicited with 
respect to the proposed rule change, and none have been received.

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)(i) of the Act\3\ and subparagraph (e)(1) of Rule 19b-4 
thereunder\4\ because it involves an interpretation of an existing rule 
of the self-regulatory organization. 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.
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    \3\15 U.S.C. 78s(b)(3)(A)(i) (1988).
    \4\17 CFR 240.19b-4(e)(1) (1993).
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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 the above-referenced 
self-regulatory organization.
    All submissions should refer to File No. SR-NSCC-94-02 and should 
be submitted by May 26, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\5\
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    \5\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-10751 Filed 5-4-94; 8:45 am]
BILLING CODE 8010-01-M