[Federal Register Volume 69, Number 148 (Tuesday, August 3, 2004)]
[Notices]
[Pages 46611-46612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17573]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50095; File No. SR-NSCC-2004-03]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Mutual Fund Profile and Fund/SPEED Service Fees

July 27, 2004.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 21, 2004, the 
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 proposed rule change provides for revisions to NSCC's fees 
which will be effective September 1, 2004, for its Mutual Fund Profile 
Service (``MFPS'') and Fund/SPEED Service.

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

1. Mutual Fund Profile Service
    NSCC's MFPS is a centralized information database used by NSCC's 
mutual fund service members. Phase I of MFPS provided daily mutual fund 
prices in the form of mutual fund net asset values and rates for daily 
accrual funds. Phase II was introduced in 1999 to add member profiles 
(i.e., information about processing capabilities of other members), 
security issue profiles (i.e., information relating to identification 
of fund securities characteristics such as minimum requirements and 
purchase amounts for a particular security), and distribution 
declaration profiles (i.e., information relating to record, 
reinvestment, and payable dates for dividend and capital gains 
payments).
    NSCC is making extensive enhancements to Phase II of MFPS to 
incorporate additional securities-related data in order to facilitate 
more accurate tracking and application of breakpoint related 
information, which is consistent with the recommendations of the Joint 
NASD/Industry Task Force on Breakpoints.\3\ NSCC proposes a fee 
increase for MFPS consistent with these enhancements.
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    \3\ The breakpoint issue and the enhancements to MFPS are 
further described in NSCC's Important Notice A5765, 
P&S5335 (February 12, 2004), which is attached as Exhibit A 
to this filing. Copies of this filing and the attached exhibits will 
be available for inspection and copying at the principal office of 
NSCC and on NSCC's Web site at www.nscc.com/legal/.
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    The current fee for MFPS (Phase I and Phase II) is $325.00 per 
month. The revised fees will introduce two tier pricing as follows:

MFPS--Phase I (Price and Rate) Only: $325.00 per month.
MFPS--Phase I and II: $750.00 per month.

    Members currently subscribing to MFPS will automatically be subject 
to the higher fees applicable to MFPS, Phases I and II, effective 
September 1, 2004. Members will be given advance notice of the fee 
increase in order to provide the opportunity to convert to MFPS Phase I 
(Price and Rate only) if the member so desires.

[[Page 46612]]

2. New Fund/SPEED Activity Fee
    NSCC currently charges fees for the following Fund/SPEED functions:
    Inquiries: $.005 per transaction.
    Trade Data Transmission: $.50 per transaction.
    New Accounts: $.75 per transaction.
    NSCC is adding an additional function, Account Maintenance, for 
which there will be a fee of $.25 per transaction. A transaction is 
defined as a request for information and a response. The fee will be 
effective on September 1, 2004.
    NSCC regards all of the proposed fees to be consistent with its 
policy to set fees at a level that projects full cost recovery for the 
product line.
    NSCC believes that the proposed rule change is consistent with the 
requirements of section 17A of the Act \4\ and the rules and 
regulations thereunder applicable to NSCC because the proposed rule 
change will provide for the equitable allocation of dues, fees and 
other charges among NSCC's members.
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    \4\ 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 any 
impact or impose any 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. The enhancements to NSCC's MFPS, which address 
the need for more accurate identification of breakpoint-related data, 
were discussed and developed through meetings and communications among 
members of the Joint NASD/Industry Task Force, of which NSCC and 
several NSCC members are members. 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)(ii) \5\ of the Act and Rule 19b-4(f)(2) \6\ promulgated 
thereunder because the proposal is establishing or changing a due, fee, 
or other charge imposed by NSCC. At any time within sixty days of the 
filing of such proposed rule change, the Commission could have 
summarily abrogated such rule change if it appeared to the Commission 
that such action was 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)(ii).
    \6\ 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. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-NSCC-2004-03 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., 
Washington, DC 20549-0609.
    All submissions should refer to File Number SR-NSCC-2004-03. 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, please use only one method. The Commission will post all 
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 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 also will be 
available for inspection and copying at the principal office of NSCC. 
All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-NSCC-2004-03 
and should be submitted on or before August 24, 2004.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\7\
Jill M. Peterson,
Assistant Secretary.
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    \7\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 04-17573 Filed 8-2-04; 8:45 am]
BILLING CODE 8010-01-P