[Federal Register Volume 63, Number 217 (Tuesday, November 10, 1998)]
[Pages 63096-63097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30098]



[Release No. 34-40634; File No. SR-NSCC-98-13]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Modifying NSCC's Annuities Processing Service

November 4, 1998.
    Pursuant to Section 19(b) (1) of the Securities Exchange Act of 
1934 (``Act''),\1\ notice is hereby given that on October 8, 1998, as 
amended by facsimile on October 8, 1998, the National Securities 
Clearing Corporation (``NSCC'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change (File No. SR-NSCC-
98-13) 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 from interested persons on the proposed rule 

    \1\ 15 U.S.C. 78s(b) (1).

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change will permit members to use the Annuities 
Processing Service (``APS'') to submit data and to settle payments with 
respect to life insurance products.

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 

    \2\ The Commission has modified the text of the summaries 
prepared by NSCC.

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    NSCC currently transmits data and information and settles payments 
with respect to annuities through APS.\3\ Under the proposed rule 
change, NSCC will transmit data and information and settle payments 
relating to life insurance products as well as annuity products through 
APS. According to NSCC, the processing of data and information and the 
settlement of payments with respect to life insurance products would be 
identical to the processing of annuity products. Since the name 
``Annuities Processing Service'' or APS is commonly known and 
recognized, NSCC has no current plans to change the name of the 

    \3\ APS is a centralized communication link connecting 
participating insurance carriers with broker-dealers, banks, and the 
broker-dealers' or banks' affiliated life insurance agencies where 
appropriate. For a more detailed description of APS, refer to 
Securities Exchange Act Release No. 39096 (September 19, 1997), 62 
FR 50416 [File No. SR-NSCC-96-21] (order approving proposed rule 

    NSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \4\ and the rules and 
regulations thereunder since it will facilitate the prompt and accurate 
processing of transactions.

    \4\ 15 U.S.C. 78q-1.

(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 Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(iii) of the Act\5\ and Rule 19b-4(e)(4) thereunder\6\ 
because the

[[Page 63097]]

proposal effects a change in an existing service of NSCC that (i) does 
not adversely affect the safeguarding of securities or funds in the 
custody or control of NSCC or for which it is responsible and (ii) does 
not significantly affect the respective rights or obligations of DTC 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.

    \5\15 U.S.C. 78s(b)(3)(A)(iii).
    \6\17 CFR 240.19b-4(e)(4).

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. 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 
submission should refer to File No. SR-NSCC-98-13 and should be 
submitted by December 1, 1998.

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

    \7\17 CFR 200.30-3(a)(12).

Johathan G. Katz,
[FR Doc. 98-30098 Filed 11-9-98; 8:45 am]