[Federal Register Volume 64, Number 63 (Friday, April 2, 1999)]
[Notices]
[Pages 16018-16019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8126]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41219; File No. SR-NSCC-98-11]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Order Approving a Proposed Rule Change to Modify Rules 
Regarding Mutual Fund Services Transfer Service

March 26, 1999.
    On July 30, 1998, National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission'') a proposed rule change (File No. SR-NSCC-98-11) 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'').\1\ Notice of the proposal was published in the Federal 
Register on October 21, 1998.\2\ No comment letters were received. For 
the reasons discussed below, the Commission is approving the proposed 
rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 40549 (October 14, 
1998), 63 FR 56280.
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I. Description

    The rule change modifies NSCC's rules relating to its Mutual Fund

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Services transfer service.\3\ The Mutual Fund Services transfer service 
enables fund members and mutual fund processors to transfer between 
each other the value of Fund/SERV eligible mutual fund shares or UIT 
units on an automated basis.
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    \3\ Specifically, NSCC is amending Rule 52, A. Fund/Serv, SEC 
21. Transfers of Fund/Serv Eligible Mutual Fund Shares and UIT 
Units.
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    Currently, a delivering fund member that has acknowledged a 
transfer request must confirm the value of the Fund/SERV eligible 
mutual fund shares or UIT units to be transferred by submitting a 
confirmation to NSCC no earlier than two days and no later than sixty 
business days after the submission of an acknowledgment. The rule 
change will permit the delivering fund member to submit a confirmation 
no earlier than one day and, as is the case today, no later than sixty 
business days after the submission of an acknowledgment. NSCC will 
notify members by Important Notice of the specific implementation.

II. Discussion

    Section 17A(b)(3)(F) of the Act \4\ requires, among other things, 
that the rules of a clearing agency be designed to promote the prompt 
and accurate clearance and settlement of securities transactions. The 
Commission believes that the proposed rule change is consistent with 
NSCC's obligations under Section 17A(b)(3)(F) because the rule change 
facilitates faster transfers.
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    \4\ 15 U.S.C. 78q-1(b)(3)(F).
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Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act \5\ and the 
rules and regulations thereunder.
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    \5\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-NSCC-98-11) be, and 
hereby is, approved.

    \6\ 15 U.S.C. 78s(b)(2).
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    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. 99-8126 Filed 4-1-99; 8:45 am]
BILLING CODE 8010-01-M