[Federal Register Volume 70, Number 31 (Wednesday, February 16, 2005)]
[Notices]
[Pages 7992-7993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-640]



[[Page 7992]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-51177; File No. SR-NSCC-2004-11]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Relating to Amending the Fee Schedule of the Insurance 
Processing Service

February 9, 2005.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 20, 2004, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') a 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 revise the transaction fees for 
NSCC's Insurance Processing Service (``IPS'').

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

    Pursuant to this rule change, fees for the Positions and Valuations 
(``POV'') product of IPS, which enables carriers to send annuity and 
life insurance contract details to their distributors, will be adjusted 
as follows (each fee is for 1,000 items):
     For zero to 500,000 items per month (the previous range 
was zero to 49,999 items per month), there will be a price increase 
from $6.00 to $8.00;
     For 500,001 to 2,000,000 items per month (the previous 
range was 50,000 to 249,999 items per month), there will be a price 
decrease from $5.00 to $4.50;
     For 2,000,001 to 4,000,000 items per month (the previous 
range was 250,000 to 999,999 items per month), there will be a price 
decrease from $4.00 to $3.75; and
     For 4,000,001 or more items per month (the previous range 
was 1,000,000 or more items per month), there will be a price increase 
from $2.00 to $3.50.
    The effective date for these fee adjustments was January 1, 2005. 
NSCC represents that these proposed fee revisions are consistent with 
NSCC's overall pricing philosophy to align service fees and underlying 
cost.
    NSCC believes that the proposed rule change is consistent with the 
requirements of the Section 17A of the Act \3\ and the rules and 
regulations thereunder because it provides for a reasonable fee to 
cover the clearing agency's costs and as such it promotes 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 believes that the proposed rule change will not 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

    NSCC has not solicited or received written comments relating to the 
proposed rule change. NSCC will notify the Commission of any written 
comments it receives.

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

    The foregoing rule change took effect upon filing with the 
Commission pursuant to Section 19(b)(3)(A)(ii) of the Act \4\ and Rule 
19b-4(f)(2) \5\ thereunder because the proposed rule change changes 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 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. 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-2004-11 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-2004-11. 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 NSCC's principal office and on 
NSCC's Web site at http://www.nscc.com/legal/index2004.html. 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-2004-11 and should be 
submitted on or before March 9, 2005.


[[Page 7993]]


    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. E5-640 Filed 2-15-05; 8:45 am]
BILLING CODE 8010-01-P