[Federal Register Volume 68, Number 107 (Wednesday, June 4, 2003)]
[Notices]
[Pages 33554-33555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13943]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-47935; File No. SR-NSCC-2003-07]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating To Balance Order Transaction Data Reporting and 
Other Technical Corrections

May 28, 2003.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on April 10, 2003, 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 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 Procedure 
V to allow NSCC to report Balance Order transaction data on the 
Consolidated Trade Summary delivered to participants. The proposed rule 
change will also correct errors in NSCC Procedure VII.

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

    As part of NSCC's straight through processing development efforts, 
NSCC is revising its Continuous Net Settlement and Balance Order 
processing. As part of this initiative, NSCC has decided to modify the 
manner in which it reports Balance Order transaction data to 
participants in order to make such information more readily available 
in a more efficient and cost effective manner. Starting on July 25, 
2003, Balance Order information will be reported on the Consolidated 
Trade Summary.
    The proposed modification to Procedure V, ``Balance Order 
Accounting Operation,'' implements this change. In addition, the 
proposed rule change clarifies that the Consolidated Trade Summary is 
issued on each day that is a settlement day. The proposed rule change 
further corrects erroneous cross references and a typographical error 
in Procedure VII, section E, subsections 4(a) and (b), respectively.
    The proposed rule change is consistent with Section 17A(b)(3)(F) of 
the Act \3\ and the rules and regulations thereunder because it will 
enable NSCC to report Balance Order transaction data to its 
participants in an easier, more cost efficient manner thereby 
facilitating the prompt and accurate clearance and settlement of 
securities transactions.
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    \3\ 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 consulted with the Securities Industry 
Association's Straight Through Processing Subcommittee in developing 
the reporting modifications. NSCC advised participants of the proposed 
modifications in Important Notice A 5482, P&S 5052 (September 25, 
2002). 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 will take effect on July 25, 2003, 
pursuant to Section 19(b)(3)(A)(iii) of the Act \4\ and Rule 19b-
4(f)(4)\5\ thereunder because the proposed rule effects a change in an 
existing service of NSCC which neither (1) adversely affects the 
safeguarding of securities or funds in NSCC's custody or control or for 
which NSCC is responsible nor (2) significantly affects the rights or 
obligations of NSCC or persons using the service. 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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    \4\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \5\ 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. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-NSCC-2003-07. 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

[[Page 33555]]

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-2003-07 and should be submitted by June 25, 2003.

    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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 03-13943 Filed 6-3-03; 8:45 am]
BILLING CODE 8010-01-U