[Federal Register Volume 64, Number 40 (Tuesday, March 2, 1999)]
[Notices]
[Pages 10171-10172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5089]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41086; File No. SR-NSCC-99-01]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Revising the Fee Schedule for the Annuity Processing 
Service

February 22, 1999.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 4, 1999, 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 revises NSCC's fee schedule with regard to 
its Annuity Processing Service (``APS'').\2\
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    \2\ For a detailed description of APS, refer to Securities 
Exchange Act Release Nos. 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) and 40799 (December 16, 
1998), 63 FR 71175 [File No. SR-NSCC-98-07] (order approving the 
implementation of phase two of APS).
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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 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 section (A), 
(B), and (C) below, of the most significant aspects of such 
statements.\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 December 28, 1998, NSCC filed with the Commission its fee 
schedule for certain APS transactions, which became effective upon 
filing.\4\ In that filing, NSCC erroneously stated that the fee to be 
charged for the transmission of a financial activity report (``FAR'') 
by insurance carriers to distributors was $0.50 per FAR transmitted or 
received.\5\ The proposed rule change corrects NSCC's fee schedule to 
reflect that the fee for the transmission of a FAR by insurance 
carriers to distributors is $.05 per each FAR transmitted or 
received.\6\
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    \4\ Securities Exchange Act Release No. 40975 (January 25, 
1999), 64 FR 4920 [File No. SR-NSCC-98-16].
    \5\ NSCC has not charged its members any fee for such 
transactions since NSCC filed its fee schedule with the Commission 
on December 28, 1998. For transactions submitted on or after 
February 1, 1999, NSCC will charge its member the corrected fee.
    \6\ The text of the proposed revision to NSCC's fee schedule is 
attached as Exhibit A to NSCC's rule 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 
Section 17A(b)(3)(D) of the Act\7\ and the rules and regulations 
thereunder because it provides for the equitable allocation of 
reasonable dues, fees, and other charges among NSCC's participants.
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    \7\ 15 U.S.C. 78q-1(b)(3)(D).
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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 Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of Act \8\ and pursuant to Rule 19b-4(f)(2) \9\ 
promulgated thereunder because the proposal changes a due, fee, or 
other charge imposed by NSCC. 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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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Intersted 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

[[Page 10172]]

available for inspection and copying in the Commission's Public 
Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Copies of 
such filing will also be available for inspection and copying at the 
principal office of NSCC. All submissions should refer to File No. SR-
NSCC-99-01 and should be submitted by March 23, 1999.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-5089 Filed 3-1-99; 8:45 am]
BILLING CODE 8010-01-M