[Federal Register Volume 68, Number 98 (Wednesday, May 21, 2003)]
[Notices]
[Pages 27880-27881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12733]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47873; File No. SR-NSCC-2002-15]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Modifying NSCC Rule 15

May 15, 2003.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 20, 2002, 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') and on December 24, 
2002, amended 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 parties.
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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 modify NSCC Rule 15 
to specify what additional information participants and applicants must 
file with NSCC regarding their financial responsibility and operational 
capability.

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 filing is to modify Section 2 of 
NSCC Rule 15, ``Financial Responsibility and Operational Capability.'' 
The proposed rule filing specifically: (1) Codifies the current 
practice that applicable members provide copies to NSCC of consolidated 
reports of condition and income (i.e., ``call reports''), (2) require 
broker-dealer members to provide copies to NSCC of their most recent 
audited financial statements within sixty days after their fiscal year 
end and non-broker-dealer members to provide copies to NSCC of their 
most recent audited financial statements within ninety days after their 
fiscal year end, (3) require members to file copies with NSCC of all 
Rule 17a-11 letters filed with the Commission, and (4) require members 
to file with NSCC copies of such filings as determined by NSCC from 
time to time which members are required to file pursuant to the 
Sarbanes-Oxley Act of 2002 and any amendments thereunder.\3\
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    \3\ Pub. L. 107-204, 116 Stat. 745 (2002).
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    Rule 15, Section 2 currently permits NSCC to examine the financial 
responsibility and operational capability of members and applicants and 
to require them to provide certain information to NSCC. The proposed 
rule change modifies Rule 15 to more specifically delineate other 
information that participants must file with NSCC.
    The proposed rule change is consistent with Section 17A(b)(3)(F) of 
the Act \4\ and the rules and regulations thereunder because it will 
assure the safeguarding of securities and funds in NSCC's custody or 
control.
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    \4\ 15 U.S.C. 78q(b)(3)(F).
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(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 foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(i) of the Act \5\ and Rule 19b-4(f)(1) \6\ thereunder 
because the proposed rule change constitutes an interpretation with 
respect to the administration and enforcement of an

[[Page 27881]]

existing NSCC rule. At any time within sixty days of the filing of such 
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)(i).
    \6\ 17 CFR 240.19b-4(f)(1).
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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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-NSCC-2002-15. This file number should be included on the 
subject line if e-mail is used. To help us process and review comments 
more efficiently, comments should be sent in hardcopy or by e-mail but 
not by both methods. 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 20549-0609. 
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-2002-15 and should be submitted by June 11, 2003.

    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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 03-12733 Filed 5-20-03; 8:45 am]
BILLING CODE 8010-01-P