[Federal Register Volume 66, Number 183 (Thursday, September 20, 2001)]
[Notices]
[Pages 48501-48502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-23464]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-44793; File No. SR-NSCC-2001-15]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Order Granting Accelerated Approval 
of a Proposed Rule Change Relating to a Temporary Processing 
Modification for Buy-In Executions

September 14, 2001.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 14, 2001, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change as described in Items I and II below, which Items have been 
prepared primarily by NSCC. The Commission is publishing this notice 
and order to solicit comments from interested persons and to grant 
accelerated approval of the proposed rule change.
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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 purpose of the proposed rule change is to make a temporary 
processing modification for buy-in executions.

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 change is to make a temporary 
processing modification for buy-in executions. Under NSCC's buy-in 
process, NSCC includes information regarding buy-in liability on its 
CNS Projection Report. Due to the recent tragic events, many NSCC 
members are operating out of alternate operational sites. Many of these 
members, for various reasons associated with recent events, have had 
connectivity difficulties with NSCC. NSCC therefore is concerned that 
notice of buy-in liability may not have been received by affected 
members. NSCC therefore intends to not permit buy-in executions when 
market trading resumes for both the day trading resumes and the day 
thereafter. Any notice of intention to buy-in affected by this filing 
will be required to be resubmitted to NSCC.
    The proposed rule change will facilitate the orderly, prompt, and 
accurate clearance and settlement of securities transactions. Thus, the 
proposed rule change is consistent with the requirements 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

    Written comments relating to the proposed rule change have not yet 
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

    Section 17A(b)(3)(F) of the Act requires that the rules of a 
clearing agency be designed to promote the prompt and accurate 
clearance and settlement of securities transactions.\3\ Due to recent 
communications and

[[Page 48502]]

connectivity disruptions with NSCC, affected members may not have 
received notice of buy-in liability. Therefore, by not allowing buy-in 
executions when market trading resumes and on the day thereafter, and 
by requiring any notice of intention to buy-in affected by this filing 
to be resubmitted to NSCC, NSCC's proposed rule change should 
facilitate an orderly return to an environment where the prompt and 
accurate clearance and settlement of securities transactions is 
effected. Therefore, the Commission finds that the rule change is 
consistent with NSCC's obligation under section 17A(b)(3)(F).
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    \3\ 15 U.S.C. 78q-1(b)(3)(F).
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    NSCC has requested that the Commission find good cause for 
approving the proposed rule change prior to the thirtieth day after 
publication of the notice of filing. The Commission finds good cause 
for approving prior to the thirtieth day after publication of the 
notice of filing because accelerated approval will permit NSCC to 
immediately make a temporary processing modification for buy-in 
executions on the date when trading resumes. The Commission is 
approving this proposed rule change prior to the expiration of the 
public comment period in order to allow NSCC to immediately make a 
temporary processing modification for buy-in executions on the date 
when trading resumes.

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 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. SR-NSCC-2001-15 and should be submitted by October 11, 2001.
    It Is Therefore Ordered, pursuant to section 19(b)(2) of the Act, 
that the proposed rule change (File No. SR-NSCC-2001-15) be, and hereby 
is, approved on an accelerated basis.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-23464 Filed 9-19-01; 8:45 am]
BILLING CODE 8010-01-M