[Federal Register Volume 64, Number 65 (Tuesday, April 6, 1999)]
[Notices]
[Page 16772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8366]



[[Page 16772]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-41223; File No. SR-NSCC-99-03]


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

March 29, 1999.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 24, 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 for trade 
comparison, trade recording, flip trades, and Fund/SERV transactions.

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 
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.

    NSCC's trade comparison fee for each side of each stock, warrant, 
or right trade submitted is $.018 per 100 shares with a minimum fee of 
$.072 and a maximum fee of $1.08. The proposed rule change reduces the 
fee for each side submitted to $.010 with the minimum fee reduced to 
$.040 and the maximum fee reduced $.60.
    NSCC's trade recording fee for each side of each stock, warrant, or 
right item that is entered for settlement but not compared by NSCC is 
$.008 per 100 shares with a minimum fee of $.032 and a maximum fee of 
$.48. The proposed rule change reduces the fee for such items to $.006 
per 100 shares with the minimum fee reduced to $.024 and the maximum 
fee reduced to $.36.
    NSCC's per side fee for flip trades is $.050. The proposed rule 
change reduces the fee to $.025 per side.
    The proposed rule change reduces NSCC's Fund/SERV transaction fee 
from $.30 to $.25 per side per order or transfer request.
    NSCC intends to give its members the benefit of these fee changes 
effective as of January 1, 1999. The necessary adjustments to 
accommodate these reductions will be reflect in billing statements 
transmitted in February 1999.
    NSCC believes that the proposed rule change is consistent with 
Section 17A(b)(3)(D) of the Act \3\ 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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    \3\ 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 the Act \4\ and pursuant to Rule 19b-4(f)(2) \5\ 
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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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(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 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-99-03 and should 
be submitted by April 27, 1999.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-8366 Filed 4-5-99; 8:45 am]
BILLING CODE 8010-01-M