[Federal Register Volume 59, Number 116 (Friday, June 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14733]
[[Page Unknown]]
[Federal Register: June 17, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34193; File No. SR-NSCC-94-08]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Modifying NSCC's Correction Fees
June 10, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of
1934,\1\ notice is hereby given that on June 1, 1994, the National
Securities Clearing Corporation (``NSCC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change (File
No. SR-NSCC-94-08) as described in Items I, II, and III below, which
Items have been prepared by primarily NSCC. The Commission is
publishing this notice to solicit comments on the proposed rule changes
from interested persons.
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\1\15 U.S.C. section 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 modifies NSCC's fee structure as it
relates to correction fees for the processing of municipal securities
transactions. The text of the rule change is set forth at Exhibit A.
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
The purpose of the rule change is to modify NSCC's fee structure as
it relates to correction fees for the processing of municipal
securities transactions to reflect the fact that correction
capabilities have been accelerated in conformity with comparison
capabilities. In August of 1993, NSCC accelerated the comparison
processing for municipal securities transactions to the date after
trade date (``T+1''). Previously NSCC had charged participants for
supplemental input on or after T+2. Because correction processing can
now be initiated on T+1, the NSCC fee structure is being modified in
order to charge participants for supplemental input on or after T+1.
Although the acceleration of municipal bond comparison occurred in
August of 1993, this fee change will be effective for supplemental
comparison processing as of June 1, 1994.
The proposed rule change provides for the equitable allocation of
dues, fees, and charges among participants. Therefore, NSCC believes
that it is consistent with the requirements of the Act, particularly
section 17A(b)(3)(D) of the Act.
B. Self-Regulatory Organization's Statement on Burden on Competition
NSCC believes that the proposed rule changes will not have any
impact 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
NSCC has neither solicited nor received any written comments.
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) of the Act\2\ and subparagraph (e)(2) of Rule 19b-4
thereunder because it establishes a due, fee, or other charge imposed
by NSCC.\3\ At any time within sixty days of the filing of such 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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\2\15 U.S.C. section 78s(b)(3)(A)(ii) (1988).
\3\17 CFR Sec. 240.19b-4(e)(4) (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 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-94-08 and should be submitted by July
8, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\4\
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\4\17 CFR Sec. 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
Exhibit A
The text of the proposed rule change is as follows: Italicized text
indicates additions. Bracketed text indicates deletions.
3. Amex and OTC Corporate Bond and UIT [Bond System] Correction
Fees\5\:
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\5\The abbreviations Amex, OTC, and UIT refer respectively to:
the American Stock Exchange, Inc., over-the-counter, and unit
investment trust.
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* * * * *
4. Municipal Bond System Correction Fees:
a. All supplemental input after T (Advisory, As Of, Demand As Of,
Withhold) except for Demand As Of Advisories and Trades Deleted.
(1) T+1--$.40 to the submitter
(2) T+1--$.60 to the submitter
(3) after T+2--$1.00 to the submitter
b. Trades Deleted:
(1) T+1--$.40 to both sides
(2) T+2--$.60 to both sides
(3) after T+2--$1.00 to both sides
5[4]. OTC Equity and Bond System Correction Fees:
* * * * *
[FR Doc. 94-14733 Filed 6-16-94; 8:45 am]
BILLING CODE 8010-01-M