[Federal Register Volume 66, Number 65 (Wednesday, April 4, 2001)]
[Notices]
[Pages 17982-17983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8212]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44126; File No. SR-NSCC-01-01]


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

March 28, 2001.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\, notice is hereby given that on January 12, 2001, 
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 
parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1)
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change will allow NSCC to provide mutual fund/
insurance services and fund members with a one-time partial discount of 
their 2000 service fees.\2\
---------------------------------------------------------------------------

    \2\ NSCC amended the filing to make it clear that the one-time 
partial discount also would be provided to mutual fund/insurance 
services members. Letter from Richard Paley, Associate Counsel, NSCC 
(February 14, 2001).
---------------------------------------------------------------------------

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.\3\
---------------------------------------------------------------------------

    \3\ The Commission had modified the text of the summaries 
prepared by NSCC.
---------------------------------------------------------------------------

(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 provide a one-time 
partial discount to NSCC fund members for Fund/Serv fees. NSCC's board 
of directors had determined to provide Rule 2 mutual fund/insurance 
services members and Rule 51 fund members with a one-time partial 
discount of their year 2000 Fund/Serv transaction fees, which fee is 
$.25 per side per order or transfer request.\4\ This decision was made 
because of an increase in year 2000 gross margins due to rise in Fund/
Serv transaction volumes and a determination not to fund certain Fund/
Serv development work at this time.
---------------------------------------------------------------------------

    \4\ NSCC Rules, Addendum A, Section IV(N)(2).
---------------------------------------------------------------------------

    NSCC intend to give mutual fund/insurance services members and fund 
members the benefit of this discount for the twelve months ending 
December 31, 2000. Based upon individual transaction volumes, each 
mutual fund/insurance services member fund member will receive a 
proportional share of an amount equivalent to 50% of the net excess 
revenues generated by the Fund service during the year 2000 period. The 
necessary adjustments to accommodate the refund will be reflected in 
billing statements transmitted to fund members in February 2001.
    The proposed rule change is consistent with the requirements for 
Section 17A of the Act and the rules and regulations thereunder 
applicable to NSCC because it provides for the equitable allocation of 
dues, fees, and other charges among NSCC's participants.

(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 and Rule 19b-4(f)(2) thereunder because the 
proposed rule change is changing a due, fee, or charge imposed by the 
self-regulatory organization. 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.

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 20549-0609. 
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, NW., 
Washington, DC 20549. Copies of such

[[Page 17983]]

filing also will be available for inspection and copying at the 
principal office of NSCC. All submissions should refer to File No. SR-
NSCC-01-01 and should be submitted by April 25, 2001.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-8212 Filed 4-3-01; 8:45 am]
BILLING CODE 8010-01-M