[Federal Register Volume 67, Number 161 (Tuesday, August 20, 2002)]
[Notices]
[Pages 54005-54006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-21067]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-46337; File No. SR-NSCC-2002-04]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Modifying NSCC's Rules to Accept Trade Input for Debt 
Security Trades Executed on the American Stock Exchange from its 
Members for Comparison Processing

August 12, 2002.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 14, 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 will allow NSCC to accept directly from 
NSCC members for processing in NSCC's trade comparison service debt 
security trades executed on the American Stock Exchange (``Amex'') that 
were previously reported to NSCC by the New York Stock Exchange's 
(``NYSE'') Online Comparison System (``OCS'').

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

    With the elimination of the use of OCS by the NYSE for debt 
security trades executed on the Amex, NSCC is modifying its rules in 
order to accept trade input for such trades from members for comparison 
processing. The proposed rule change will allow NSCC to process these 
trades in the same manner that it processes over-the-counter corporate 
bond trades submitted directly to it by its members for comparison. In 
addition, the proposed rule change reflects technical changes regarding 
(i) the use of Withhold tickets and (ii) the submission to NSCC of debt 
securities trades executed on the NYSE \3\ to conform the rules to 
current practice.
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    \3\ All debt security trades executed on the NYSE are now 
submitted to NSCC by the NYSE Automated Bond System.
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    This filing enables debt security trades executed on the Amex \4\ 
to be submitted to NSCC in a cost efficient manner that is currently 
utilized by NSCC in connection with similar types of trades; therefore, 
NSCC believes it is consistent with the provisions of Section 17A of 
the Act, as amended, and the rules and regulations thereunder.

(B) Self-Regulatory Organization's Statement on Burden on Competition
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    \4\ NSCC will also process other debt security trades that may 
have been previously submitted to NSCC via OCS if the trades are 
eligible to be processed in its Fixed Income Transaction System.
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    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 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 effects a change in an existing 
service of NSCC that (i) does not adversely affect the safe-guarding of 
securities or funds in the custody or control of the clearing agency or 
for which it is responsible, and (ii) does not significantly affect the 
respective rights and obligations of the clearing agency or persons 
using the service, it has become effective pursuant to Section 
19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(4) \6\ 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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    \5\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \6\ 17 CFR 240.19b-4(f)(4).
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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

[[Page 54006]]

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-2002-04 and should be submitted by September 10, 2002.

    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. 02-21067 Filed 8-19-02; 8:45 am]
BILLING CODE 8010-01-P