[Federal Register Volume 66, Number 103 (Tuesday, May 29, 2001)]
[Notices]
[Page 29192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13326]


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SECURITIES AND EXCHANGE COMMISSION

(Release No. 34-44330; File No. SR-NSCC-2001-08)


Self-Regulatory Organizations; The National Securities Clearing 
Corporation; Notice of Filing of Proposed Rule Change Relating to 
Processing Commission Payments

May 21, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on April 27, 2001, 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.\2\ 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).
    \2\ A copy of NSCC's proposed rule change is available at the 
Commission's Public Reference Section or through NSCC.
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I. Self-Regulatory Organization's Statement of the Terms of 
Substance of the Proposed Rule Change

    The proposed rule change amends the process by which commissions 
are paid to non-clearing members.

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\
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    \3\ 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

    As part of NSCC's ongoing efforts to increase processing 
efficiencies, NSCC has decided to modify its rules to further 
standardize and automate the processing of commission payments to non-
clearing members.
    In accordance with NSCC Rule 16, NSCC's Commission Bill Service 
currently permits non-clearing members entitled to a credit to receive 
their monthly commission bill payments either electronically by 
Automated Clearing House (``ACH'') wire transfer or manually by check. 
At present, slightly less than 50% of NSCC's approximate 350 non-
clearing members physically receive their commission bill payments by 
check. Such manual distributions are made on the floors of the New York 
Stock Exchange (``NYSE'') and the American Stock Exchange (``AMEX''). 
The proposed rule change will require all non-clearing members to 
execute appropriate ACH documentation in order to receive their credit 
payments.
    In the event a non-clearing member does not pay the amount it owes 
to NSCC, the rule is being changed to explicitly permit NSCC to set-off 
any future commission bill credits to which it is entitled.
    Subject to SEC approval, NSCC will implement the proposed rule 
changes on July 13, 2001. If a non-clearing member has not executed the 
appropriate ACH wire transfer documentation such member will not 
receive any credit payments until it does.
    The proposed rule change will facilitate the prompt and accurate 
payment of commission bill transactions. The proposed rule change is 
therefore consistent with Section 17A of the Act and the rules and 
regulations thereunder.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will have an 
impact on 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

    NSCC has worked with and received the support of the NYSE and the 
AMEX with respect to these proposed changes. No written comments 
relating to the proposed rule change have been solicited or received. 
NSCC will notify the Commission of any written comments it receives.

III. Date of Effectiveness of the Proposed Rule Change and Timing 
for Commission Action

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    (A) By order approve such proposed rule change or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

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 filing also will be available for 
inspection and copying at the principal office of NSCC. All submissions 
should refer to File No. SR-NSCC-2001-08 and should be submitted by 
June 19, 2001.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-13326 Filed 5-25-01; 8:45 am]
BILLING CODE 8010-01-M