[Federal Register Volume 68, Number 136 (Wednesday, July 16, 2003)]
[Notices]
[Pages 42153-42154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17921]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-48141; File No. SR-NSCC-2003-12]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Relating to Availability of Trade Data to Members for 
Listed and OTC Processing

July 8, 2003.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 
1934,\1\ notice is hereby given that on June 16, 2003, the National 
Securities Clearing Corporation (``NSCC'') filed a proposed rule change 
with the Securities and Exchange Commission (``Commission'') and on 
June 24, 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 will make technical modifications to 
NSCC's trade comparison rules and procedures to clarify (1) the format, 
availability, and content of trade data available to its participants 
and (2) that NSCC will no longer provide trade comparison processing 
for New York Stock Exchange (``NYSE'') and American Stock Exchange 
(``Amex'') equity trades.

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.

    The purpose of the proposed rule change is to make technical 
changes to NSCC's rules and procedures to conform them to actual 
practice. NSCC issues transaction information known as ``output'' to 
its members in various formats and at different intervals throughout 
the day. The changes make it clear that the frequency and availability 
of such information is dependent on the format of the output.
    Historically, NSCC's reporting of equity trading activity on behalf 
of various participants and marketplaces was limited to reporting at 
the end of the trading processing day, with report output produced to 
participants and marketplaces in both a print image (``PI'') and 
machine readable output (``MRO'') form.
    With PI output, data appears as a formatted report with predefined 
columns of information. PI-formatted information is ``reader 
friendly,'' includes both activity and total fields, and is usually 
produced at end-of-day, reflecting the total activity reported by the 
participant for that processing day.

[[Page 42154]]

MRO consists of a continuous strand of data and the receiver uses an 
NSCC-defined record layout that identifies each specific field of data 
to populate the information into its own internal reports. MRO contains 
additional fields of useful data that do appear on PI output. 
Participants that use MRO may receive multiple transmissions of data 
throughout the processing day and each transmission of data generally 
reflects activity only. Participants accumulate their intraday output 
files from NSCC throughout the day, and the sum of the accumulated 
files represents their total activity reported to NSCC for that 
processing day.
    NSCC is also clarifying its rules to indicate that NSCC performs 
comparison processing only for over-the-counter and non-NYSE/Amex 
trades. NSCC's rules previously provided that when the NYSE and the 
Amex provided comparison processing, NSCC would no longer perform these 
functions for securities traded on these exchanges. Since the NYSE and 
Amex now provide this function, references to comparison processing for 
NYSE and Amex equities are being deleted.
    NSCC believes that this proposed rule change is consistent with the 
provisions of section 17A of the Act \3\ and the rules and regulations 
thereunder because NSCC's rules will more accurately reflect the 
availability of trade reporting and trade comparison output. Therefore, 
the proposed rule change should enhance the prompt and accurate 
clearance and settlement of securities transactions.
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    \3\ 15 U.S.C. 78q-1.
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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)(iii) of the Act \4\ and Securities Exchange Act Rule 19b-
4(f)(4)\5\ because it effects a change in an existing NSCC service that 
does not adversely affect the safeguarding of securities or funds in 
NSCC's control or for which NSCC is responsible and does not 
significantly affect NSCC's or its participants' respective rights or 
obligations. 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)(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 5th Street, NW., Washington, DC 20549-0069. 
Comments may also be submitted electronically at the following e-mail 
address: [email protected]. All comment letters should refer to 
File No. SR-NSCC-2003-12. 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 rule filing that 
are filed with the Commission, and all written communications relating 
to the rule filing between the Commission and any person, other than 
those that may be withheld from the public in accordance with 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Room in Washington, DC. 
Copies of such filing will also be available for inspection and copying 
at NSCC's principal office. All submissions should refer to File No. 
SR-NSCC-2003-12 and should be submitted by August 6, 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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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-17921 Filed 7-15-03; 8:45 am]
BILLING CODE 8010-01-P