[Federal Register Volume 63, Number 213 (Wednesday, November 4, 1998)]
[Notices]
[Pages 59616-59617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29512]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40618; File No. SR-NSCC-98-12]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Expanding the Fund/Serv Service

October 29, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 30, 1998, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change expands NSCC's Fund/Serv service to permit 
the transfer of eligible assets in all types of retirement plan 
accounts.\2\
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    \2\ Fund/Serv, which is part of NSCC's Mutual fund Services, 
permits NSCC members to process and to settle on an automated basis 
mutual fund purchase and redemption orders and to transmit 
registration instructions.
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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. 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 
statement.\3\
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    \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

    On November 15, 1996, the Commission approved NSCC's rule filing to 
allow members to transfer assets held in an individual retirement 
account (``IRA'') to another mutual fund

[[Page 59617]]

through Fund/Serv.\4\ Consistent with NSCC's original intentions, this 
proposed rule change expands NSCC's Fund/Serv to permit transfers of 
eligible assets held in all types of retirement accounts, not just 
assets held in IRAs.
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    \4\ Securities Exchange Act Release No. 37959 (November 15, 
1996), 61 FR 59478 [File No. SR-NSCC-96-16].
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    NSCC believes that the proposed rule change is consistent with 
Section 17A of the Act \5\ and the rules and regulations thereunder 
because it will help foster cooperation and coordination with persons 
engaged in the clearance and settlement of securities transactions and 
will help remove impediments to the prompt and accurate clearance and 
settlement of securities transactions.
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    \5\ 15 U.S.C. 79q-1.
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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

    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 the Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(iii) of the Act \6\ and pursuant to Rule 19b-4(e)(4) \7\ 
promulgated thereunder because the proposal effects a change in an 
existing service that does not adversely affect the safeguarding of 
securities or funds in the custody or control of the clearing agency or 
for which it is responsible and does not affect the respective rights 
or obligations of the clearing agency or persons using the service. 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 purposes of the Act.
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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 17 CFR 240.19b-4(e)(4).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. 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, D.C. 20549. Copies of such filing also will be available 
for inspection and copying at the principal office of NSCC. All 
submissions should refer to File No. SR-NSCC-98-12 and should be 
submitted by November 25, 1998.
    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-29512 Filed 11-3-98; 8:45 am]
BILLING CODE 8010-01-M