[Federal Register Volume 70, Number 177 (Wednesday, September 14, 2005)]
[Notices]
[Pages 54426-54427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-5010]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52397; File No. SR-NSCC-2005-12]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Modify Automated Customer Account Transfer Service Rules 
and Procedures

September 8, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 23, 2005, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the 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 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 rule change modifies NSCC's Automated Customer Account Transfer 
Service (``ACATS'') Rules and Procedures by eliminating the provision 
that allows delivering members to initiate the transfer of a custody 
redelivery position purchased by the delivering member for the benefit 
of a customer's account to a receiving member.

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 rule change and discussed 
any comments it received on the 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

    NSCC's ACATS enables members to transfer accounts of their 
customers between themselves on an automated basis. Currently, NSCC's 
Rule 50 provides that delivering members may, among other things, 
initiate the transfer of a custody redelivery position purchased by a 
delivering member for the benefit of a customer's account to a 
receiving member. While other features of delivering member initiated 
partial account transfers are utilized by members, this custody 
redelivery function is substantially unused. Accordingly, NSCC is 
deleting this function and removing reference to it from Rule 50.
    NSCC believes the rule change is consistent with the requirements 
of Section 17A of the Act \3\ and the rules and regulations thereunder 
applicable to NSCC because it eliminates a substantially unused feature 
of ACATS and as such, NSCC believes it is a change to an existing 
service that will not adversely affect the safeguarding of securities 
and funds in NSCC's custody or control and will not significantly 
affect the respective rights or obligations of NSCC or its 
participants.
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    \3\ 15 U.S.C. 78q-1.

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[[Page 54427]]

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

    NSCC does not believe that the rule change will have an 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 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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A) of the Act \4\ and Rule 19b-4(f) \5\ thereunder 
because it does not significantly affect the respective rights or 
obligations of the clearing agency or persons using the service and 
does not adversely affect the safeguarding of securities or funds in 
the custody or control of NSCC or for which it is responsible. At any 
time within sixty days of the filing of the 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).
    \5\ 17 CFR 240.19b-4(f).
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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 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-2005-12 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-NSCC-2005-12. 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 rule change that are filed 
with the Commission, and all written communications relating to the 
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, 100 F Street, NE., Washington, 
DC 20549. Copies of such filings 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-2005-12 and should be submitted on or before October 5, 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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Jonathan G. Katz,
Secretary.
[FR Doc. E5-5010 Filed 9-13-05; 8:45 am]
BILLING CODE 8010-01-P