[Federal Register Volume 69, Number 22 (Tuesday, February 3, 2004)]
[Notices]
[Pages 5230-5231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-2091]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49122; File No. SR-NSCC-2003-23]


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

January 23, 2004.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on January 2, 2004, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change 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 (i) adjust the fees 
NSCC charges for trade recording, (ii) establish fees for the Cost 
Basis Reporting Service, and (iii) eliminate Archival Microfiche fees.

[[Page 5231]]

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 change is to (i) adjust the fees 
NSCC charges for trade recording, (ii) establish fees for the Cost 
Basis Reporting Service, and (iii) eliminate Archival Microfiche fees.
    Pursuant to the proposed rule change, the fee for trade recording 
for each side of each stock, warrant, or other right entered for 
settlement has been reduced from $0.003 to $0.0025 per 100 shares with 
a minimum fee of $0.0075 and a maximum fee of $0.15 (reduced from 
$0.009 and $0.18, respectively). In addition, the fee for use of the 
Cost Basis Reporting Service, which had been operating on a pilot basis 
during which no fee was charged, will be $0.09 per asset. The Archival 
Microfiche fees have been eliminated because this format is no longer 
provided due to more preferred alternative means for providing archival 
reports. Members were notified of the proposed elimination and the 
alternative means of receiving archival reports in an Important Notice 
(A 5671, P&S 524) dated August 29, 2003. These 
proposed fee revisions are consistent with NSCC's overall pricing 
philosophy to align service fees and underlying cost.
    The proposed rule change is consistent with Section 17A(b)(3)(D) of 
the Act \3\ and the rules and regulations thereunder because it allows 
for the equitable allocation of reasonable dues, fees, and other 
charges among NSCC's members.
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    \3\ 15 U.S.C. 78q-1(b)(3)(D).
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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 upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act \4\ and Rule 19b-4(f)(2) \5\ 
thereunder because the proposed rule establishes or changes a due, fee, 
or other charge. 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)(ii).
    \5\ 17 CFR 240.19b-4(f)(2).
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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-2003-23. This file number should be included on the 
subject line if e-mail is used. To help the Commission process and 
review your 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 and on NSCC's Web site at 
www.NSCC.com/legal/. All submissions should refer to File No. SR-NSCC-
2003-23 and should be submitted by February 24, 2004.

    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. 04-2091 Filed 2-2-04; 8:45 am]
BILLING CODE 8010-01-U