[Federal Register Volume 60, Number 1 (Tuesday, January 3, 1995)]
[Notices]
[Pages 155-156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32251]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35148; File No. SR-NSCC-94-19]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of Proposed Rule Change To Settle Certain 
Mutual Fund Services Transactions in Same Day Funds

December 23, 1994.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'')\1\ notice is hereby given that on November 8, 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.

    \1\15 U.S.C. 78s(b)(1) (1988). [[Page 156]] 
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change consists of modifications to NSCC's rules 
relating to Mutual Fund Services transactions to allow NSCC to make and 
receive same-day funds payments in connection with the settlement of 
certain mutual fund transactions.

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 proposed rule change is to enable NSCC to offer 
same-day funds money settlement capabilities as part of its Fund/Serv 
Service. Currently, NSCC's Fund/Serv service processes mutual fund 
transactions in which the money settlement occurs in next-day funds. 
Money settlement for money market and no-load mutual fund transactions 
occurs in same-day funds and cannot presently be accommodated by NSCC's 
Fund/Serv service. The proposed rule change will permit NSCC to make 
and receive same-day funds payments in connection with the settlement 
of money market and no-load mutual fund transactions.\2\

    \2\NSCC presently receives same-day funds payments from Fund 
Members and Mutual Fund Processors for dividend amounts owed and 
processed through NSCC's Networking service and for commission 
amounts owed and processed through NSCC's Commission Settlement 
Service.
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    NSCC will not net a member's same-day funds debit or credit with 
the member's next-day funds debit or credit. Accordingly, the proposed 
rule change modifies NSCC Rule 12 to clarify that there will be more 
than one mutual funds settling trades summary which will reflect 
amounts payable to or payable by NSCC for the settlement of Mutual Fund 
Services transactions. NSCC will produce a mutual funds settling trades 
summary that will evidence the member's same-day funds mutual funds 
settlement obligation and a separate mutual funds settling trades 
summary that will evidence the member's mutual funds obligation 
settling in next-day funds. The proposed rule change also makes 
technical changes to Sections B and C of NSCC's Rule 52 to conform the 
language regarding money settlement and the cross-references to NSCC's 
settlement rule.
    NSCC believes that the proposed rule change is consistent with 
Section 17A of the Act and the rules and regulations thereunder because 
it 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 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 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 N.W., 
Washington, D.C. 20549. Copies of such filing will also be available 
for inspection and copying at the principal offices of NSCC. All 
submissions should refer to File No. SR-NSCC-94-19 and should be 
submitted by January 24, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\3\

    \3\17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 94-32251 Filed 12-30-94; 8:45 am]
BILLING CODE 8010-01-M