[Federal Register Volume 60, Number 43 (Monday, March 6, 1995)]
[Notices]
[Page 12260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5372]



[[Page 12260]]

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-35423; File No. SR-NSCC-95-01]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Expanding the Types of Payments Processed Through the 
Mutual Fund Networking Service

February 28, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934\1\ (``Act''), notice is hereby given that on January 10, 1995, 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).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NSCC proposes to modify its Mutual Fund Networking Service rules to 
permit settlement of additional payments pertaining to mutual fund 
activity.

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 statement 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

    NSCC's Mutual Fund Networking Service currently enables Networking 
participants to transmit mutual fund customer account data among NSCC's 
broker-dealer and mutual fund processing members\2\ and to settle 
mutual fund dividend payments.\3\ The proposed rule change will modify 
the Mutual Fund Networking Service to permit settlement of other 
payments pertaining to mutual fund activity in addition to dividend 
payments.\4\ NSCC currently proposes to allow Networking participants 
to settle payments which result from standing instructions (e.g., 
monthly) given by a customer to a mutual fund to liquidate a certain 
amount or value of shares or specific instructions given by a customer 
directly to a mutual fund to liquidate shares.\5\ The proposed rule 
modifies the existing Mutual Fund Networking Service to better meet the 
needs of NSCC's Networking participants by expanding the 
standardization of money payments on an automated basis.

    \2\For a detailed description of NSCC's Networking Service, 
refer to Securities Exchange Act Release No. 26376 (December 28, 
1988), 53 FR 52544 [File No. SR-NSCC-88-08] (order granting approval 
to NSCC's Networking Service).
    \3\Securities Exchange Act Release No. 28608 (November 19, 
1990), 55 FR 48193 [File No. NSCC-89-13] (order granting permanent 
approval to NSCC's automated settlement of mutual fund dividends).
    \4\Payments made through the Networking Service are not 
guaranteed by NSCC; therefore, NSCC reserves the right to reverse 
any credit in the event NSCC does not receive a corresponding 
payment from a Fund member.
    \5\NSCC will be required to file a proposed rule change pursuant 
to Section 19(b) of the Act before allowing other types of payments 
to be processed through the Networking service.
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    NSCC believes the proposed rule change is consistent with the 
requirements of the Act, and specifically Section 17A of the Act, and 
the rules and regulations thereunder, because the proposal 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 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)(iii)\6\ of the Act and pursuant to Rule 19b-4(e)(4)\7\ 
promulgated thereunder, in that the proposal effects a change in an 
existing service that does not adversely affect the safeguarding of 
securities or funds in NSCC's custody or control and does not 
significantly affect the respective rights or obligations of NSCC or 
persons using NSCC's services. 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 purpose of the Act.

    \6\15 U.S.C. 78s(b)(3)(A)(iii) (1988).
    \7\17 CFR 240.19b-4(e)(4) (1994).
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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 statement 
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-95-01 and should be submitted by March 
27, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\

    \8\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-5372 Filed 3-3-95; 8:45 am]
BILLING CODE 8010-01-M