[Federal Register Volume 68, Number 133 (Friday, July 11, 2003)]
[Notices]
[Pages 41410-41411]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17589]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48122; File No. SR-NSCC-2003-14]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of a Proposed Rule Change Relating to 
Anonymity Features on Trading Systems

July 2, 2003.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 19, 2003, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission''), and on June 23, 
2003, 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 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 would modify NSCC's procedures to 
accommodate the reporting of trades executed on a system that provides 
trading anonymity.

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

    NSCC may receive locked-in trade data from an SRO that operates a 
trading system that provides anonymity. At the request of the SRO, NSCC 
may report back to members such trades identifying an acronym selected 
by the SRO instead of naming the actual contraside. The purpose of the 
proposed rule filing is to add language to section II.C.1 of NSCC Rules 
and Procedures that would provide that in such an event the contraside 
is one of the members eligible to execute trades on the anonymous 
trading system. New language would also be added to that section that 
would provide that if NSCC ceases to act for the unnamed contraside, 
the applicable entity providing the anonymous trading system will be 
responsible for identifying to members which of their trades are with 
the affected member.
    The National Association of Securities Dealers, Inc. (``NASD'') 
recently filed a proposed rule change that would allow it to add an 
anonymity feature to the Nasdaq Stock Market's SuperMontage trading 
system.\3\ NSCC's proposed rule

[[Page 41411]]

change will initially accommodate trades executed on the SuperMontage 
platform and therefore will need to be approved at the same time as the 
NASD's proposed rule change.
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    \3\ File No. SR-NASD-2003-85 (filed May 22, 2003).
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    NSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and the rules and regulations 
thereunder applicable to NSCC because by allowing NSCC to accommodate 
trades executed on an anonymous platform it will promote the prompt and 
accurate clearance and settlement of securities transactions.

(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC perceives no adverse impact on competition by reason of the 
proposed rule change.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received from Members, Participants, or Others

    Comments from NSCC members or others have not been solicited or 
received on the proposed rule change. NSCC will notify the Commission 
of any written comments received by it.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period (i) as the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding or (ii) as to which the self-regulatory organization consents, 
the Commission will:
    (a) by order approve the proposed rule change or
    (b) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2003-14. 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. 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-2003-14 and should be submitted by August 1, 2003.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-17589 Filed 7-10-03; 8:45 am]
BILLING CODE 8010-01-P