[Federal Register Volume 61, Number 61 (Thursday, March 28, 1996)]
[Notices]
[Pages 13912-13913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7500]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37001; File No. SR-NSCC-96-07]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of a Proposed Rule Change To Permit NSCC 
To Charge and To Collect From Members Charges Imposed by Certain Third 
Parties

March 21, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on March 19, 1996, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change (File No. SR-NSCC-96-07) 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. Sec. 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 expand NSCC's 
authority to charge and to collect from members fees imposed by third 
parties.

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 the text of the statements 
submitted 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 proposes to expand its authority to charge and to collect from 
its members fees imposed by certain third parties. NSCC's current rules 
permit NSCC to charge members for fees imposed by self-regulatory 
organizations or other security industry organizations or entities with 
which NSCC has entered into agreements. The proposed modifications to 
NSCC's rules will permit NSCC to include on members' settlement 
statements charges imposed by other entities or organizations with 
which NSCC has entered into agreements and which provide services or 
equipment to members which are integral to the services provided by 
NSCC.
    From time to time, third parties which have entered into agreements 
with NSCC and which provide NSCC members with certain services or 
equipment that facilitate access to NSCC services, request that NSCC 
directly bill its members for the services or equipment such third 
parties provide to members.\3\ The proposed rule change will permit 
such third parties to aggregate individual member charges in one 
invoice to NSCC and will allow NSCC in turn to include the third 
parties' charges to individual members on such NSCC members' settlement 
statements. The proposed rule will thereby enable NSCC members to 
consolidate their payment obligations. If a member does not consent to 
such charges or otherwise disputes such charges, NSCC will not fine the 
member for not paying to NSCC the third party's charges. In addition, 
NSCC will have no

[[Page 13913]]
liability to any third party vendors for such charges.

    \3\ For example, NSCC members may want to obtain computer 
hardware and/or software to access certain NSCC services. To 
facilitate such access, NSCC would make arrangements with a third 
party vendor to supply members with the appropriate hardware and/or 
software. The third party vendor would send a detailed monthly 
invoice directly to NSCC reflecting the individual member charge and 
aggregate charges for the month. NSCC would then include the 
appropriate charge on each member's monthly statement. NSCC would 
remit to the vendor within the agreed upon time period the amount 
that NSCC actually collected from members in connection with the 
vendor's charges.
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    NSCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder because the rule proposal provides for the equitable 
allocation of dues, fees, and other charges among NSCC's participants.

(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

    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 NSCC 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. Sec. 552, will be available for inspection and copying in 
the Commission's Public Reference Room, 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-96-07 and should be 
submitted by April 18, 1996.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\4\

    \4\ 17 CFR 200.30-3(a)(12) (1995).
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Jonathan G. Katz,
Secretary.
[FR Doc. 96-7500 Filed 3-27-96; 8:45 am]
BILLING CODE 8010-01-M