[Federal Register Volume 60, Number 142 (Tuesday, July 25, 1995)]
[Notices]
[Pages 38071-38072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18217]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35983; File No. SR-NSCC-95-07]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Reducing Networking Account Fees

July 18, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 21, 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 person.

    \1\ 15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organizations Statement of the Terms of 
Substance of the Proposed Rule Change

    NSCC is filing the proposed rule change to reduce certain of the 
Networking service \2\ account fees charged to NSCC participants.

    \2\ Networking is NSCC's centralized and standardized data 
communications system that enables members to transmit mutual fund 
customer account data and to settle mutual fund payments between 
themselves. For a complete description of the 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).
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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.\3\

    \3\ The Commission has modified the text of the summaries 
prepared by NSCC.
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(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 reduce the Networking 
service monthly account base fees charged to NSCC participants in order 
that such fees will reflect more accurately the current costs of 
providing the service. For accounts with funds paying dividends 
monthly, the monthly account base fee will be reduced from $.045 per 
side to $.035 per networking subaccount. Similarly, for accounts with 
funds paying dividends less frequently than monthly, the monthly 
account base fee will be reduced from $.03 per side to $.023 per 
networking subaccount. This reduced fee structure will take effect on 
June 1, 1995.
    Section 17A(b)(3)(D) of the Act \4\ requires that the rules of a 
clearing agency provide for the equitable allocation of reasonable 
dues, fees, and other charges among its participants. NSCC believes 
that the proposed rule change is consistent with the requirements of 
Section 17A(b)(3)(D) of the Act because the new fee schedule allocates 
fees more equitably among NSCC participants.

    \4\ 15 U.S.C. 78q-1(b)(3)(D) (1988).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will 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 neither solicited nor received written comments on the 
proposed rule change. NSCC will notify the Commission of any written 
comments it receives.

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)\5\ of the Act and Rule 19b-4(e)(2)\6\ thereunder 
because the rule change establishes or changes a due, fee, or other 
charge. 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 purpose of the Act.

    \5\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
    \6\ 17 CFR 240.19b-4(e)(2) (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, 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. Sec. 552, will be available for inspection and copying in 
the Commission's Public Reference Section, 450 Fifth Street, N.W., 
Washington, DC 20549. Copies of such filing also will be available for 
inspection and copying at the principal 

[[Page 38072]]
office of NSCC. All submissions should refer to File No. SR-NSCC-95-07 
and should be submitted by August 15, 1995.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\

    \7\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-18217 Filed 7-24-95; 8:45 am]
BILLING CODE 8010-01-M