[Federal Register Volume 66, Number 33 (Friday, February 16, 2001)]
[Notices]
[Pages 10765-10766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3967]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-43949; File No. SR-NSCC-00-13]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and immediate Effectiveness of a Proposed 
Rule Change Revising NSCC Procedures

February 9, 2001.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 22, 2000, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') and on December 15, 
2000, amended the proposed rule change as described in Items I, II, and 
III below, which Items have been prepared 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 Procedures to provide that 
locked-in trade data for fixed income securities will be reflected on 
Bond Contract Lists and Bond Supplemental Contract Lists.

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 DTC.
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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 make a technical 
correction to NSCC's Procedures to provide that locked-in trade data 
for fixed income securities, as reported by qualified special 
representatives (``QSRs'') \3\ and service bureaus, will be reflected 
on Bond Contract Lists.
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    \3\ Under NSCC Rule 39, QSR members are able to submit trade 
data on behalf of other NSCC members. Securities Exchange Act 
Release No. 23792 (Nov. 12, 1986), 51 FR 41880 (Nov. 19, 1986).
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    NSCC Rule 39 provides that NSCC members have the ability to submit 
equity and fixed income trade data on a locked-in basis on behalf of 
others through NSCC's Special Representative/QSR input mechanism. 
Currently, NSCC only receives such locked-in trade data for over-the-
counter (``OTC'') equity securities, and such trades are reported on T 
Contracts Lists and T + 1 Locked-In Contract Lists.\4\
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    \4\ NSCC Procedures II(B)(1) and II(C)(1)(e).
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    Because NSCC now expects to receive QSR locked-in data for fixed 
income transactions, NSCC is proposing to add subparagraph (i) to its 
Procedure II(D)(1). This new paragraph will state that licked-in trade 
data reported by QSR and service bureaus will be reflected on Bond 
Contract Lists, which are available on the morning of T + 1, and on 
Bond Supplemental Contract Lists, which are available on the morning of 
T + 2.
    NSCC believes that the proposed rule change is consistent with the 
requirements of the Act and rules and regulations thereunder because it 
will help NSCC promote the prompt and accurate clearance and settlement 
of securities transactions.

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)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ thereunder 
because the proposed rule change effects a change in an NSCC's existing 
service that (i) does not adversely affect the safeguarding of 
securities or funds in NSCC's custody or control for which NSCC is 
responsible and (ii) does not significantly affect the respective 
rights or obligations of NSCC or persons using the service. At any time 
within sixty days of the filing of

[[Page 10766]]

such rule change, the Commission may summarily abrogate such rule 
change if it appears to the Commission hat 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)(iii).
    \6\ 17 CFR 240.19b-4(f)(4).
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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 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 20549-0609. 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 
that are filed with 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 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 will also be available 
for inspection and copying at NSCC's principal office. All submissions 
should refer to File No. SR-NSCC-00-13 and should be submitted by March 
9, 2001.

    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. 01-3967 Filed 2-15-01; 8:45 am]
BILLING CODE 8010-01-M