[Federal Register Volume 65, Number 86 (Wednesday, May 3, 2000)]
[Notices]
[Pages 25779-25780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11004]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-42724; File No. SR-NSCC-00-01]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Revising Fee Schedule

April 26, 2000.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'').\1\ notice is hereby given that on February 23, 2000, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change as described in Items I, II, 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 parties.
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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.

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 these 
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

    The purpose of the proposed rule filing is to reduce the fees for 
certain NSCC services, Trade Recording, Trade Clearance, and 
ACATSTIF.\3\ Currently, the trade recording fee for each side of each 
stock, warrant, or right item entered for settlement, but not for 
comparison by NSCC, is $.006 per 100 shares with a minimum fee of $.024 
and a maximum fee of $.36. Under the proposed rule change, NSCC will 
reduce

[[Page 25780]]

the fee for each side entered to $.005 per 100 shares with a minimum 
fee of $.020 and a maximum fee of $.30.
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    \3\ Automated Customer Account Transfer Service Initiation Form.
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    The Trade Clearance fee \4\ for receipts from Continuous Net 
Settlement (``CNS'') to satisfy a long valued position currently is 
$.40 per issue received. The proposed rule change reduces the fee for 
such items to $.35 per issue received.
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    \4\ The Trade Clearance fees represent fees for netting, issuing 
instructions to receive or deliver; effecting book-entry deliveries, 
and related activities.
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    The Trade Clearance fee for deliveries to CNS in the night 
processing cycle to cover a short valued position currently is $.40 per 
delivery. The proposed rule change reduces the fee for these items to 
$.35 per delivery.
    The Trade Clearance fee for deliveries to CNS in the day processing 
cycle to cover a short valued position currently is $1.00 per delivery. 
The proposed rule change reduces the fee for these items to $.75 per 
delivery.
    The Trade Clearance fee for fails to deliver to CNS (Short-in-CNS) 
currently is $.35 per item. The proposed rule change reduces the fee 
for these items to $.25 per delivery.
    The Trade Clearance fee for trade clearance (netting) currently is 
$.03 per side. The proposed rule change reduces the fee for these items 
to $.025 per side.
    The Trade Clearance fee for designated valued deliveries 
(transaction Processing) entered into the clearance system through 
special representation procedures currently is $.10 per side. The 
proposed rule change reduces the fee for these items to $.075 per side.
    The ACATSTIF fee represents the fee charged by NSCC's enabling 
members and Qualified Securities Depositories (``The Depository Trust 
Company'') to transfer accounts of their customers between themselves 
on an automated basis through the Automated Customer Account Transfer 
Service. The ACATSTIF fee currently is $1.00 per submission. The 
proposed rule change reduces the fee for such items to $.85 per 
submission.
    NSCC intends to give members the benefit of these fee changes 
effective as of January 1, 2000. The necessary adjustments to 
accommodate these reductions will be reflected in billing statements 
transmitted in February 2000.
    NSCC believes the proposed rule change is consistent with the 
requirements of Section 17A of the Act \5\ and the rules and 
regulations thereunder applicable to NSCC and in particular with 
Section 17A(b)(3)(F) of the Act because it provides for the equitable 
allocation of dues, fees, and other charges among NSCC's participants.
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    \5\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Composition

    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) \6\ of the Act and Rule 19b-4(f)(2) \7\ promulgated 
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 such 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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, N.W., Washington, D.C. 20549-
0609.
    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 
submissions should refer to File No. SRO-NSCC--00-01 and should be 
submitted by May 24, 2000.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-11004 Filed 5-2-00; 8:45 am]
BILLING CODE 8010-01-M