[Federal Register Volume 67, Number 81 (Friday, April 26, 2002)]
[Notices]
[Pages 20858-20859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10314]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-45788; File No. SR-NSCC-2002-01]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Order Granting Accelerated Approval 
of a Proposed Rule Change Making Technical Changes to Its Rules Related 
to the Timing of Clearing Fund Deposits

April 19, 2002.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 23, 2002, 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 proposal.
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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 technical 
correction to NSCC Rule 4 relating to the timing of clearing fund 
deposits.

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 NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    On June 15, 2001, the Commission approved proposed rule change SR-
NSCC-2001-04 which modified and consolidated NSCC's clearing fund 
rules.\3\ The purpose of the filing was to: (1) move all NSCC members 
subject to clearing fund requirements, and not only those member firms 
that were subject to surveillance status, to risk-based margining and 
(2) modify the rules to provide that additional clearing fund deposits 
must be made on the same day requested and within the time frame 
established by NSCC. The filing stated, in part, that all clearing fund 
requirements and other deposit requirements shall be made by members 
within one hour of demand unless otherwise determined by NSCC.\4\ At 
that time, the prior notification requirement found in Section 7 of 
Rule 4 of NSCC's Rules and Procedures should have been deleted because 
it is inconsistent with the time frame in that filing. Inadvertently, 
this deletion was not made. The purpose of this proposed rule change is 
to delete the inconsistent prior notification provisions of NSCC Rule 
4.
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    \3\ Securities Exchange Act Release No. 44431 (June 15, 2001), 
66 FR 33280.
    \4\ NSCC Rules and Procedures Procedure XV, II.(B).
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    The proposed rule change is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to NSCC since 
the proposed rule change clarifies the clearing fund deposit process 
and assures the safeguarding of funds within NSCC's custody and 
control.

(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

    No written comments relating to the proposed rule change 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 Commission finds that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder and particularly with the requirements of Section 
17A(b)(3)(F).\5\ Section 17A(b)(3)(F) requires that the rules of a 
clearing agency be designed to assure the safeguarding of funds which 
are in the custody or control of the clearing agency or for which it is 
responsible. The Commission believes that the approval of NSCC's rule 
change is consistent with this section because it

[[Page 20859]]

will enable NSCC to resolve a discrepancy that exists in its rules and 
procedures with regard to the time frame for deposits of clearing fund 
and to more quickly collect additional clearing fund requirements, 
which was one intended purpose of NSCC's approved filing SR-NSCC-2001-
04.
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    \5\ 15 U.S.C. 78q-1(b)(3)(F).
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    NSCC has requested that the Commission approve the proposed rule 
change prior to the thirtieth day after publication of the notice of 
the filing. The Commission finds good cause for approving the proposed 
rule change prior to the thirtieth day after the publication of notice 
because such approval will allow NSCC to avoid confusion among 
participants regarding the time within which additional clearing fund 
deposits must be received by NSCC.

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 Room, 450 Fifth Street, NW., Washington, 
DC 20549. Copies of such filing will also be available for inspection 
and copying at the principal office of NSCC. All submissions should 
refer to the File No. SR-NSCC-2002-01 and should be submitted by May 
17, 2002.
    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\6\ that the proposed rule change (File No. SR-NSCC-2002-01) be and 
hereby is approved.
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    \6\ 15 U.S.C. 78s(b)(2).

    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. 02-10314 Filed 4-25-02; 8:45 am]
BILLING CODE 8010-01-P