[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Notices]
[Pages 42932-42933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20396]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36094; File No. SR-NSCC-10]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Concerning the Processing of Index Receipts

August 11, 1995.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 27, 1995, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change (File No. SR-NSCC-95-10) 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

    The purpose of the proposed rule change is to modify NSCC's 
procedures for processing index receipts to reflect that the only 
service NSCC will provide 

[[Page 42933]]
with respect to foreign index receipts is distribution of the 
composition file. In addition, the proposed rule change establishes a 
fee of $125.00 for the distribution of the composition file for such 
nondomestic index receipts.

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.\2\

    \2\ The Commission has modified parts 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

    NSCC currently provides services for the processing of domestic 
index products. These services include the processing of creation and 
redemption instructions and the settlement of the underlying securities 
as well as cash amounts related to the creations and redemptions. 
Additionally, NSCC provides members with a composition file that is 
used by NSCC in settling the creation and redemption instructions.\3\ 
The New York Stock Exchange (``NYSE'') plans to begin trading 
depository index receipts based on the Financial Times Actuaries World 
Indices.\4\ The new NYSE products will include receipts based on a 
domestic index and eight foreign indexes. While the index receipts will 
trade and settle like other domestic equity products, their underlying 
foreign components are not eligible to be cleared and settled 
domestically. Thus, the purpose of this filing is to modify NSCC's 
rules to indicate that with respect to foreign index products the only 
service which NSCC will provide will be the distribution of the 
composition file.

    \3\ NSCC provides to its members the composition file for 
creations and redemptions of index receipts occurring on the next 
business day to advise its members of the index receipts' component 
shares and associated quantities.
    \4\ See Securities Exchange Act Release No. 36032 (July 28, 
1995), 60 FR 40403.
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    NSCC currently charges members a fee of $125.00 per month per file 
for the distribution of the domestic composition file. The proposed 
rule change will establish a fee for the distribution of the 
composition file for the nondomestic indexes. Consistent with the 
domestic composition file fee, the fee for distribution of the 
composition file for the nondomestic indexes also will be $125.00 per 
month per file.
    NSCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder because: (i) the rule proposal will facilitate the prompt 
and accurate clearance and settlement of securities transactions and 
(ii) the proposed rule change establishes the equitable allocation of 
dues, fees, and other charges among NSCC's members.

(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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) (ii) and (iii) \5\ of the Act and pursuant to Rule 19b-4(e) 
(2) and (4) \6\ promulgated thereunder because the proposal: (i) 
establishes or changes a due, fee, or other charge imposed by NSCC and 
(ii) effects a change in an existing service that does not adversely 
affect the safeguarding of securities or funds in NSCC's custody or 
control or for which it is responsible 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 
its 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.

    \5\ 15 U.S.C. 78s(b)(3)(A) (ii) and (iii) (1988).
    \6\ 17 CFR 240.19b-4(e) (2) and (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 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 office of NSCC. All 
submissions should refer to the file number SR-NSCC-95-10 and should be 
submitted by September 7, 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. 95-20396 Filed 8-16-95; 8:45 am]
BILLING CODE 8010-01-M