[Federal Register Volume 64, Number 20 (Monday, February 1, 1999)]
[Notices]
[Pages 4920-4921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2299]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-40975; File No. SR-NSCC-98-16]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Fees

January 25, 1999.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 28, 1998, 
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 modifies NSCC's fee schedule with regard 
to its Annuities Processing Service (``APS'').

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 
statements.\2\
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    \2\ 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 December 16, 1998, the Commission approved a proposed rule 
change that allowed NSCC to implement phase two of APS.\3\ Phase two 
enables multiple insurance product distribution channels such as 
insurance agencies, broker-dealers, and other trading partners 
(collectively, ``distributors'') to transmit to insurance carriers 
information with respect to an initial annuity application and premium 
transfers on the sale of an annuity and subsequent annuity activity, as 
well as the related money settlement between the distributors and 
insurance carriers. In addition, insurance carriers can transmit to 
distributors a financial activity report (``FAR'') that provides 
information relating to events and transactions occurring with respect 
to existing annuity contracts that have been issued by the insurance 
carriers.
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    \3\ Securities Exchange Act Release No. 40799 (December 16, 
1998), 63 FR 71175 [File No. SR-NSCC-98-07]. See also Securities 
Exchange Act Release No. 39096 (September 19, 1997), 62 FR 50416 
[File No. SR-NSCC-96-21] (order approving the establishment of APS 
and the implementation of phase one of APS). For a more detailed 
description of APS, refer to the foregoing releases.
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    Currently, no fees are being charged to users of these new APS 
services. With respect to use of these services on or after January 1, 
1999, NSCC will charge its members as follows. NSCC will charge members 
that submit or receive information relating to the initial application 
or premium transfer a fee of $7.50 for each submission or receipt. NSCC 
will charge members that submit or receive information on subsequent 
annuity activity a fee of $0.50 for each such transaction. NSCC will 
charge members that submit or receive a FAR a fee of $0.50 for each FAR 
transmitted or received.\4\
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    \4\ The text of the proposed amendments to NSCC's fee schedule 
is attached as an exhibit to NSCC's filing, which is available for 
inspection and copying in the Commission's Public Reference Room and 
through NSCC.
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    NSCC believes that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
because it 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 have been solicited or received. NSCC will 
notify the Commission of any written comments received by NSCC.

[[Page 4921]]

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) of the Act \5\ and pursuant to Rule 19b-4 (e)(2) \6\ 
thereunder because the proposal establishes or changes a due, fee, or 
other charge imposed by NSCC. At any time within sixty days of the 
filing of the 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 purposes of 
the Act.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \6\ 17 CFR 240.19b-4(e)(2).
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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, NW, Washington, DC 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, NW, 
Washington, DC 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-98-16 and should be submitted by 
February 22, 1999.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-2299 Filed 1-29-99; 8:45 am]
BILLING CODE 8010-01-M