[Federal Register Volume 70, Number 5 (Friday, January 7, 2005)]
[Notices]
[Pages 1485-1487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-19]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-50949; File No. SR-NSCC-2004-10]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Order Granting Accelerated Approval 
of a Proposed Rule Change Relating to Regulatory Reporting Transmission 
Agreements With Self-Regulatory Organizations

December 30, 2004
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on

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December 16, 2004, National Securities Clearing Corporation (``NSCC'') 
filed with the Securities and Exchange Commission (``Commission'') and 
on December 27, 2004, 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 and order to solicit 
comments on the proposed rule change from interested persons and to 
grant accelerated approval of the proposed rule change.
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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 permit NSCC to provide one or more 
data transmission services to permit members and others to meet 
regulatory reporting requirements imposed by self-regulatory 
organizations.

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.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    Since 1995, NSCC has provided, as an accommodation to its members, 
a service which permits its members to submit trade data for forwarding 
to the Municipal Securities Rulemaking Board (``MSRB'') in order to 
permit its members to meet MSRB regulatory requirements. To date, 
NSCC's rules have been silent with respect to the service. The MSRB has 
asked NSCC to expand the service and to provide qualifying non-members 
with the ability to be able to submit data to NSCC for forwarding to 
the MSRB to meet regulatory requirements.
    With the introduction of a service for non-members of NSCC, NSCC 
believes that it is important to clarify in its rules that NSCC is 
providing these services on a non-exclusive basis as an accommodation 
to the industry to alleviate costs. As such, NSCC is proposing to add 
new Rule 63 that would cover the existing service, the requested 
expansion of the service, and any other similar service requested of 
NSCC by any other self-regulatory organization.\3\
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    \3\ Rule 63, SRO Regulatory Reporting, reads as follows:
    The Corporation may provide one or more data transmission 
services to permit members and others to meet regulatory reporting 
requirements imposed by self-regulatory organizations, as defined in 
the Securities Exchange Act of 1934. To the extent that members or 
others use any such service they shall be bound by the terms of any 
agreement between the Corporation and any self-regulatory 
organization with respect to each such service. Entities which are 
not members shall be required to enter into such agreements as 
determined by the Corporation in order to use such services.
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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 because it sets forth the terms that will govern 
arrangements whereby NSCC enters into an agreement with a self-
regulatory organization to facilitate regulatory reporting by industry 
participants to meet requirements imposed by self-regulatory 
organizations. As such, the proposed rule change is designed to (i) 
promote the prompt and accurate clearance and settlement of securities 
transactions, (ii) protect investors and the public interest, and (iii) 
assure the safeguarding of securities and funds for which NSCC is in 
control.

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

    NSCC does not believe that the proposed rule change would 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

    Written comments relating to the proposed rule change have not yet 
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

    Section 17A(b)(3)(F) of the Act requires, among other things, that 
the rules of a clearing agency be designed to assure the safeguarding 
of securities and funds which are in its custody or control or for 
which it is responsible.\4\ The proposed rule change, by clarifying the 
rights and obligations of NSCC and the users of any of its regulatory 
reporting data transmission services, is designed to protect NSCC and 
its members from any unnecessary financial risks. Accordingly, the 
proposed rule change should help to assure the safeguarding of 
securities and funds which are in NSCC's custody or control or for 
which it is responsible.
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    \4\ 15 U.S.C. 78q-1(b)(3)(F).
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    NSCC has requested that the Commission find good cause for 
approving the proposed rule change prior to the thirtieth day after 
publication of the notice of filing. The Commission recently approved 
two proposed rule changes filed by the MSRB that permit the MSRB to 
require dealers to submit transaction reports within 15 minutes of the 
time of trade.\5\ This requirement will become effective in January 
2005 and will be facilitated by NSCC. The Commission finds good cause 
for approving the proposed rule change prior to the thirtieth day after 
publication because by so approving NSCC will be able to provide data 
transaction trade submission services to non-members of NSCC by the 
MSRB's January 2005 implementation date.
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    \5\ Securities Exchange Act Release Nos. 50294 (August 31, 
2004), 69 FR 54170 (September 7, 2004) (Order approving a proposed 
rule change relating to amendments to the MSRB's Rule G-12(f) on 
Automated Comparison and G-14 on Transaction Reporting and relating 
to the implementation of a facility for real-time transaction 
reporting and price dissemination) and 50820 (December 8, 2004), 69 
FR 74553 (December 14, 2004) [File No. SR-MSRB-2004-06] (Order 
approving a proposed rule change to create a real-time transaction 
price service and to propose an annual subscription fee).
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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-2004-10 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-2004-10. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your

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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 and on NSCC's Web site at http://www.nscc.com. 
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-2004-10 
and should be submitted on or before January 28, 2005.

    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. E5-19 Filed 1-6-05; 8:45 am]
BILLING CODE 8010-01-P