[Federal Register Volume 67, Number 55 (Thursday, March 21, 2002)]
[Notices]
[Pages 13201-13202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6829]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45561; File No. SR-NSCC-2002-02]


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

March 14, 2002.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 25, 2002, 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. 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 consists of revisions to 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 such 
statements.\2\
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    \2\ The Commission has modified parts of these statements.
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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 (i) establish fees 
for the XML-based account inquiry feature of NSCC's Mutual Fund 
Services (``MFS''), (ii) establish fees for the XML-based 
communications interface that transmits fund transaction data to NSCC's 
Fund/SERV for processing, (iii) establish base participation fees for 
those Fund Members and Mutual Fund Processors \3\ using these XML-
communication interface features, and (iv) standardize the 
descriptions, under the name ``Fund/SPEED,'' of such MFS features and 
communications in NSCC's fee schedule.
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    \3\ As defined in NSCC's Rule 52, a Mutual Fund Processor is a 
settling member that is acting in the capacity of a Fund Member in 
connection with the issuance or redemption of fund shares.
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    In addition to and in conjunction with these changes, the proposed 
rule change provides for Fund/SERV fees for Fund/SERV Processing Only 
transactions that will settle on a participant to participant basis 
outside of NSCC.
    All of the proposed fees are payable by the applicable Fund Member 
or Mutual Fund Processor. Pursuant to this rule change, the Fund/SPEED 
fee for account inquiry will be $0.005 per request and fund response 
(``Account Inquiry''). The Fund/SPEED fee for the XML-interface 
transmission of fund transaction data (other than a new account 
transaction) to Fund/SERV will be $.50 per item (``Subsequent Trade 
Transmission'') and will be $.75 per item for transmission of 
transaction data involving a new account (``New Account Trade 
Transmission.'') All of these fees will be payable with respect to 
services provided from and after April 1, 2002.
    In addition, participating Fund Members and Mutual Fund Processors 
will be charged a monthly membership fee to use these services 
determined as follows: $250 per month for such members with less than 
twenty-five eligible mutual funds and/or eligible investment funds 
(identified by CUSIP) on Fund/SERV; $1,000 per month for such members 
with between twenty five and ninety nine eligible mutual funds/
investment funds on Fund/SERV; and $2,500 per month for such members 
with one hundred or more eligible mutual funds/investment funds on 
Fund/SERV. These fees will be effective from and after February 1, 
2002.
    Finally, this rule change provides that the Fund/SERV fees payable 
with respect to Fund/SERV Processing Only transactions will be $.175 
per side, and the fee for both sides will be charged to and payable by 
the applicable Fund Member or Mutual Fund Processor, effective with 
respect to such services provided on and after April 1, 2002.
    NSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder, since 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 relating to the proposed rule change have been 
solicited or received. NSCC has notified participants who use MFS of 
the Fund/SPEED changes. 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

    Because the foregoing rule change establishes and changes fees 
imposed by NSCC, it has become effective pursuant

[[Page 13202]]

to Section 19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) \5\ 
promulgated thereunder. At any time within sixty days of the filing of 
the 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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    \4\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
    \6\ 17 CFR 200.30-3(a)(12).
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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 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 will also be available for inspection 
and copying at the principal office of the NSCC. All submissions should 
refer to the File No. SR-NSCC-2002-02 and should be submitted by April 
11, 2002.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-6829 Filed 3-20-02; 8:45 am]
BILLING CODE 8010-01-P