[Federal Register Volume 59, Number 164 (Thursday, August 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20894]


[[Page Unknown]]

[Federal Register: August 25, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34550; File No. SR-NSCC-94-13]

 

Self Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of Proposed Rule Change Modifying the 
Automated Customer Account Transfer Service

August 18, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\, notice is hereby given that on July 20, 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 prepared primarily by NSCC. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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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 text of the proposed rule change consists of modifications to 
NSCC's rules and procedures relating to the Automated Customer Account 
Transfer Service (``ACATS'').

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 proposed rule change will modify NSCC's ACATS to accelerate the 
time in which accounts are transferred. The proposed rule change is 
made in conjunction with the New York Stock Exchange's (``NYSE'') 
recently filed proposed rule change to amend NYSE Rule 412 relating to 
transfers of customer accounts.\2\
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    \2\For a complete description of the NYSE proposed rule change, 
refer to Securities Exchange Act Release No. 34246 (June 22, 1994), 
59 FR 33559 [File No. SR-NYSE-94-21] (notice of filing of a proposed 
rule change relating to NYSE's Customer Account Contract Rule and 
its related interpretations).
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    Under NSCC's proposed rule change, NSCC Rule 50, Section 9, will be 
amended to allow a receiving member one business day after receipt from 
NSCC of the customer account asset data report to determine whether to 
accept, to reject, or to request adjustments to the account. Currently, 
receiving members have two business days to respond after receiving the 
customer account asset data report. Where Mutual Fund Services eligible 
book share mutual fund assets are to be transferred, a receiving member 
again will have one business day instead of two business days after 
receipt of the customer account asset data report to submit detailed 
transfer instructions to NSCC. Each business day that the delivering 
member causes an adjustment to be made to an account will give the 
receiving member one additional business day to accept, reject, or 
request adjustments or in the case of mutual funds to submit transfer 
instructions. Currently, receiving members have two business days after 
an adjustment. Additionally, the proposed rule change will delete 
language that treats transfers of accounts containing option positions 
differently from transfers of accounts without option positions.
    NSCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act because the changes will 
facilitate the prompt and accurate clearance and settlement of 
securities transactions.

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

    NSCC does not believe that the proposed rule change 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 relating to the proposed rule change 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

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date 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 such proposed rule change or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 N.W., Washington, D.C. 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 N.W., 
Washington, D.C. 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-94-13 and should be 
submitted by September 15, 1994.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\3\
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    \3\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-20894 Filed 8-24-94; 8:45 am]
BILLING CODE 8010-01-M