[Federal Register Volume 83, Number 115 (Thursday, June 14, 2018)]
[Notices]
[Pages 27802-27807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12752]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83397; File No. SR-NSCC-2018-002]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change To Clarify and Enhance Rules Related to Comparison and 
Recording of CMU Securities

June 8, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on June 7, 2018, 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 by the clearing agency. NSCC filed the 
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and 
Rule

[[Page 27803]]

19b-4(f)(4) thereunder \4\ so that the proposal was effective upon 
filing with the Commission. 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).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change consists of modifications to the Rules and 
Procedures of NSCC (``Rules'') in order to enhance the procedures that 
describe the process by which Members may submit debt securities, 
specifically transactions in corporate bonds, municipal bonds, and unit 
investment trusts (referred to as ``CMU securities''), for comparison 
and recording by (1) making certain clarifications and corrections to 
these procedures, and (2) adding a comparison tolerance of 20 business 
days for the trade dates of transactions submitted for comparison, as 
described below.\5\
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    \5\ Terms not defined herein are defined in the Rules, available 
at http://www.dtcc.com/legal/rules-and-procedures.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries, 
set forth in sections A, B, and C below, of the most significant 
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    NSCC is proposing to make certain revisions to Procedure II, 
Section C and Section D of the Rules, which describes the service 
provided by NSCC that allows Members to submit transactions in CMU 
securities for comparison and recording. These sections of Procedure II 
describe the rules that govern comparison of submitted trade data, 
including the information that must be included in these submissions 
and the timing of the submission, how the resulting compared trades are 
reported by NSCC, and how eligible compared trades may be processed for 
clearance and settlement through NSCC's facilities, among other related 
matters.
    NSCC is proposing to make a number of revisions to these sections 
of Procedure II in order to (1) clarify and enhance the disclosures, 
correct typographical and drafting errors, and update descriptions that 
no longer reflect current processing in order to improve the 
transparency of these provisions; and (2) include in the Rules a 
matching tolerance of 20 business days for the trade dates of submitted 
transactions in order to improve the accuracy of trade matching. Each 
of these proposed changes is described below.
(i) Proposed Changes To Clarify and Enhance Transparency
    NSCC is proposing to make a number of technical, non-substantive 
revisions to Sections C and D of Procedure II in order to improve the 
descriptions of these procedures and enhance the transparency of the 
rules that apply to the comparison and recording of CMU securities at 
NSCC. These proposed changes are described below.
Proposed Rule Changes To Revise Verb Tense and Correct Typographical 
Errors
    NSCC is proposing to revise the verb tense in order to use a 
present verb tense rather than a future verb tense, and to correct 
typographical errors. The proposed changes to revise the verb tense 
used in these procedures would align Sections C and D of Procedure II 
with other provisions within the Rules and, by using a present tense, 
would utilize more appropriate language for the description of 
procedures.
    NSCC is also proposing to correct typographical errors in order to 
improve the descriptions of these procedures and avoid confusion in a 
Member's understanding of these procedures. For example, NSCC is 
proposing to correct a typographical error by revising the term 
``insure'' to the term ``ensure'' in Procedure II, Section C, 1(a). 
NSCC is also proposing to correct the reference in the renumbered 
Procedure II, Section C, 1(k)(i) from ``price'' to ``amount'' to more 
accurately describe the information that is reported on the 
Consolidated Trade Summary (``CTS'').\6\ The information that is being 
referred to in this sentence includes both price and quantity, and, 
therefore, is more accurately described as ``amount.''
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    \6\ The CTS is a report provided to Members that contains 
summarized trade obligation information. The CTS is described in 
Procedure II (Trade Comparison and Recording Service), Procedure V 
(Balance Order Accounting Operation) and Procedure VII (CNS 
Accounting Operation) of the Rules. NSCC recently implemented 
updates to the CTS. See Securities Exchange Act Release No. 79904 
(January 31, 2017), 82 FR 9448 (February 6, 2017) (SR-NSCC-2016-
008).
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    NSCC is also proposing to change the term ``deleted'' to 
``reversed'' in Procedure II, Section C, 2(e). While Members may submit 
an instruction to delete an uncompared trade if the firm does not agree 
with the terms of the trade, as described in Procedure II, Section C, 
2(b), this sentence in Section C, 2(e) describes a different process by 
which a Member may submit an instruction to reverse a previously 
compared trade. As such, the proposed rule change would correct a 
typographical error and avoid any confusion about these two actions 
that may be caused by the misuse of this term. In connection with this 
proposed change, NSCC would also add ``reversed'' to the following 
Section C, 2(f), as the provisions of that section apply to both 
deleted and reversed transactions. This proposed change would clarify 
the applicability of this section to transactions that are reversed by 
a Member.
    By correcting typographical errors in these procedures, the 
proposed rule changes would make the Rules accurate and clearer to 
Members regarding their rights and obligations in connection with the 
use of this service.
Proposed Rule Changes To Improve and Simplify Descriptions
    NSCC is proposing rule changes that would enhance the descriptions 
of these procedures by disclosing additional information, and is also 
proposing rule changes that would simplify these descriptions by 
removing unnecessary information, as described below.
    Enhancing Descriptions and Disclosing Additional Information. 
First, NSCC is proposing to make revisions that include descriptions of 
additional criteria for use of the comparison service or other 
additional disclosures that would improve the descriptions and enhance 
the transparency of these procedures.
    NSCC is proposing to add MPID (the market participant identifier 
that is issued by the Financial Industry Regulatory Authority, Inc. and 
used to report trades) to the list of identifying trade data details 
required to be submitted for comparison processing in Procedure II, 
Section C, 1(b). This section includes a non-exhaustive list of trade 
data that NSCC may require to be submitted in connection with the use 
of this service, and provides that NSCC may require or permit Members 
to submit other identifying trade details. NSCC currently requires 
MPIDs among the trade data details that must be submitted for 
comparison purposes, and

[[Page 27804]]

NSCC believes that adding this criteria to the Rules would improve the 
transparency of this requirement.
    NSCC is proposing to revise the reference to ``OTC'' transactions 
to ``corporate bond security transactions'' and the reference to ``unit 
trust fund transactions'' to ``unit investment trust transactions'' in 
Procedure II, Section C, 1(f). ``OTC'' or ``over-the-counter'' 
securities are securities that are not traded on an exchange, and 
include debt securities such as corporate bonds. Therefore, while 
``OTC'' is not incorrect in this context, NSCC believes the use of this 
term may imply that other transactions are being referred to in this 
subsection of the Rules. Therefore, NSCC is proposing to revise the 
term to more specifically refer to ``corporate bond security 
transactions.'' Additionally, the term ``unit trust fund transactions'' 
is not a term that is commonly used to refer to unit investment trust 
transactions. While these securities may be considered funds, the 
correct term for describing these transactions is ``unit investment 
trust transactions.'' Therefore, while these proposed revisions would 
not change what is intended by these terms, they would enhance the 
transparency of this section by using terminology that would be more 
clearly recognizable to Members.
    NSCC is proposing to clarify the language in Procedure II, Section 
C, 1(h) to make clear that trades submitted for comparison may be 
identified as ``CNS-eligible,'' which would flag these trades to be 
processed through the CNS Accounting System; ``non-CNS-eligible,'' 
which would flag these trades to be processed through the Balance Order 
Accounting System; or ``Special Trade,'' which could flag these trades 
either for trade-for-trade processing, which normally settle outside of 
NSCC's facilitates, or for comparison-only processing. The proposed 
rule changes would add transparency to the Rules regarding how these 
designations impact the processing of trades submitted to NSCC.
    NSCC is proposing to add a sentence to Procedure II, Section C, 
1(i)(ii) to make clear that trades submitted for comparison-only 
processing are subject to the rules of the Municipal Securities 
Rulemaking Board (``MSRB''). NSCC believes that this clarification is 
appropriate because these submissions are not required to meet the 
eligibility requirements for clearance or settlement through NSCC's 
facilities, but must comply with the rules of the MSRB. Therefore, NSCC 
believes this proposed change would enhance the transparency of the 
Rules and would assist Members to understand the requirements that 
apply to these trades.
    NSCC is proposing to add a reference to the ``Balance Order 
Accounting System'' to the renumbered subsection (k)(ii) of Procedure 
II, Section C, 1, which describes how eligible, compared trades may be 
further processed within NSCC's facilities. Currently, this subsection 
is incomplete and does not include reference to the Balance Order 
Accounting System, where eligible compared trades that are not eligible 
to be processed in the CNS Accounting System may be processed for 
clearance and settlement. Therefore, the proposed change would enhance 
this subsection by including this additional reference.
    NSCC is proposing to add a sentence to the renumbered subsection 
(m) of Procedure II, Section C, 1 that would describe the process by 
which NSCC would convert a bilateral trade that matches a Qualified 
Special Representative (``QSR'') trade submission in all respects 
(other than its designation as a bilateral trade) into a QSR trade. 
NSCC is also proposing to add a new subsection (vi) to renumbered 
Procedure II, Section D, 2(g) that would describe the process by which 
NSCC would convert a bilateral trade that matches a syndicate takedown 
trade or reversal in all respects (other than its designation as a 
bilateral trade) into a syndicate takedown trade or reversal, as 
appropriate. These two automatic conversions are a part of NSCC's 
existing processes, but, because these conversions occur automatically 
and do not require any action by Members, these processes are not 
described in these sections of the Rules. NSCC believes these proposed 
changes to describe these automatic conversions would improve the 
transparency of the Rules and provide Members with notice that these 
conversions would occur in the described circumstances.
    NSCC is proposing to revise the renumbered subsection (p) of 
Procedure II, Section C, 1 to clarify that NSCC processes cash 
transactions where the trade date for the submitted transaction is the 
same as the settlement date for comparison-only processing. Currently, 
this section of the Rules refers to these transactions as ``cash 
transactions,'' and the proposed change would improve the transparency 
of this section by including a further description of these 
transactions. This proposed change would provide Members with 
additional information regarding the types of transactions that are 
referred to in this section and, therefore, would improve the 
transparency of the Rules.
    NSCC is proposing to revise Procedure II, Section C, 2(g) to make 
it clearer that NSCC permits certain trade details for uncompared 
trades to be modified by the submitter, provided, however, that trade 
details for syndicate takedown submissions are only permitted to be 
modified on the submission date. The proposed rule changes would also 
clarify that NSCC may limit the trade data that can be modified after a 
trade is matched. Although Section C, 2(g) currently describes these 
rules relating to the modification of submitted trade details, NSCC 
believes that the proposed revisions would improve those descriptions 
and thereby make such rules clearer to Members and improve the overall 
transparency of the Rules.
    NSCC is proposing to revise Procedure II, Section C, 2(h), which 
provides that transactions that compare after a cutoff time designated 
by NSCC on the date the transaction was scheduled to settle are 
assigned a settlement date of the next business day after the day the 
transaction is compared. The proposed rule changes would clarify that 
these rules apply to any transactions that compare after the set cutoff 
time, and not only to transactions that compare for the first time 
(meaning, transactions that have not been previously submitted and 
reversed by the counterparties pursuant to the Rules). These proposed 
changes, and the other marked revisions to this section would clarify 
the applicability of these rules and would improve the readability, 
clarity and transparency of this Section C, 2(h).
    Simplifying Descriptions and Removing Unnecessary Details. NSCC is 
also proposing to make revisions that would use fewer words to describe 
a procedure or otherwise remove unnecessary language that could cause 
confusion in the interpretation of the procedures. By rewording certain 
provisions and using simpler language in these descriptions, these 
proposed changes would improve the transparency of the procedures in 
Sections C and D of Procedure II.
    NSCC is proposing to remove the following sentence from Procedure 
II, Section C, 1(h), ``Depending upon whether trade data is submitted 
on T or T+n and the format in which output is produced with respect to 
such data, the output may reflect totals.'' NSCC believes that this 
sentence is unnecessary for purposes of describing the procedures 
applicable to comparison and recording of CMU securities transactions. 
Therefore, the proposed rule change to remove this sentence would 
simplify the Rules and remove unnecessary statements that do not 
provide Members with important

[[Page 27805]]

additional information related to this service.
    NSCC is proposing to remove from Procedure II, Section C, 2(c) a 
statement that a Member may submit an instruction to delete an 
uncompared trade if it finds that the trade data is incorrect. The 
immediately prior Section C, 2(b) of Procedure II states that a Member 
may submit an instruction to delete a trade if it does not agree with 
the terms of the trade. While the fact that the data is incorrect is 
most likely the basis for a Member to disagree with the terms of the 
trade, NSCC does not believe the statement it is proposing to remove 
from Procedure II, Section C, 2(c) adds to the rules, and believes this 
statement could indicate to a Member that its ability to delete an 
uncompared trade is limited to circumstances when the trade data is 
incorrect. NSCC believes the proposed rule change to remove this 
additional and unnecessary language would clarify Members' ability to 
submit a delete instruction.
    NSCC is proposing to remove reference to comparison-only trades 
from the renumbered subsection (l) of Procedure II, Section C, 1, which 
incorrectly states that the rules of the MSRB are not applicable to 
comparison-only trades. This subsection describes certain rules that 
are applicable to trades that are designated as Special Trades, 
including the fact that these trades are subject to the rules of the 
MSRB. Currently, this subsection includes language that expressly 
excludes comparison-only trades. NSCC believes that expressly excluding 
comparison-only trades from this subsection could incorrectly imply to 
Members that the rules described in this subsection, including the 
applicability of the MSRB rules, do not apply to comparison-only 
trades. Procedure II, Section C, 1(i)(ii) describes the rules that 
apply to comparison-only trades, including the fact that these trades 
are subject to the rules of the MSRB. Therefore, NSCC is proposing to 
remove the express exclusion of comparison-only trades from the 
renumbered subsection (l) of Procedure II, Section C, 1, which is 
unnecessary and could cause confusion.
    NSCC is proposing to remove from Procedure II, Section D, 
2(A)(2)(b) the description of the timing by which an eligible 
transaction may enter the CNS Accounting Operation. The rules 
applicable to the CNS Accounting Operation, including, as applicable, 
any relevant timing of processing in that service, is described in 
Procedure VII. This information is not necessary for the operation of 
the comparison services, and removing this information would simplify 
these rules, improving their clarity to Members.
    NSCC is also proposing to remove subsection 2(A)(2)(c) from 
Procedure II, Section D, which describes information included in the 
output NSCC produces in connection with the comparison service. As 
currently written, this subsection is incomplete and does not list all 
of the information that may be included in this output. Therefore, the 
current description could create confusion among Members regarding what 
information may be included in these reports. NSCC believes it is in 
Members' best interest that NSCC retain flexibility to add or remove 
information from these reports, for example, in response to Members' 
requests. As such, NSCC does not believe it is necessary to specify for 
Members the information that may be included in these reports. 
Therefore, NSCC believes the proposed change to remove the unnecessary 
section would simplify and improve the Rules.
    NSCC is also proposing a number of revisions to the descriptions of 
the rules regarding submission and processing of syndicate takedown 
trades and syndicate takedown reversals in renumbered Procedure II, 
Section D, 2(A)(2)(g). The proposed revisions would not change the 
rules that apply to how these trades and reversals are processed, but 
would re-order the descriptions of these rules in order to simplify, 
clarify and improve the transparency of these provisions.
Proposed Rule Changes To Update and Correct Descriptions
    NSCC is proposing rule changes that would update the procedures in 
order to accurately describe current processing and correct 
descriptions that have become outdated. Each of these proposed rule 
changes would improve the Rules by correcting these errors.
    NSCC is proposing to amend Procedure II, Section C, 1(c)(1) and (2) 
in order to clarify that the tolerances for comparison of contract 
amounts apply only to bilateral trades, and state that the QSR's or 
syndicate manager's contract amount is used for QSR and syndicate 
trades for comparison purposes. Currently, these two subsections of the 
Rules describe the contract amount tolerances that are applicable to 
bilateral trades, but fail to specify which tolerances apply to 
bilateral trades, and which tolerances apply to QSR and syndicate 
trades. The proposed rule change would clarify that the tolerances 
currently described in these subsections apply only to bilateral 
trades, and would add to these subsections a description of the rules 
for comparing contract amounts applicable to QSR and syndicate trades.
    NSCC is proposing to remove subsection (j) from Procedure II, 
Section C, 1, which states that Members may override clearing agent 
designations by submitting trade input for comparison using the 
appropriate Trade-for-Trade Indicator. NSCC is also proposing to remove 
from the renumbered Procedure II, Section C, 1(k)(i) the reference to 
``any clearing agent indicated by the applicable contra party'' as an 
example of information that NSCC may provide on the CTS. Members that 
are Municipal Comparison Only Members may use another Member as their 
``clearing agent'' to access NSCC's clearing and settlement services, 
and, historically, clearing agent designations had been reported on the 
CTS. However, in connection with its recent updates to the CTS, in 
response to Member feedback that it is no longer necessary to report 
these clearing agent designations, NSCC removed the designations from 
the CTS.\7\ In error, NSCC did not remove references to the clearing 
agent designation from subsection (j) or from the renumbered subsection 
(k)(i) of Procedure II, Section C when it implemented these updates. 
Therefore, the proposed change would correct this error by removing 
from the Rules statements that are no longer accurate and could cause 
Members confusion regarding the use of this service.
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    \7\ Supra note 6.
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    Finally, NSCC is proposing two changes that would correct errors 
that it has identified in the Rules. The proposed changes would correct 
descriptions in these sections of the Rules in order to accurately 
describe processing that has been effective since this service was 
implemented over 10 years ago. While these changes would revise the 
Rules as written, the changes would not result in any change in the 
current operation of the service. NSCC does not believe that either of 
these changes would significantly affect the respective rights or 
obligations of NSCC or Members using this service.
    First, NSCC is proposing to remove from Procedure II, Section C, 
1(g) an incorrect statement that trades in municipal bonds must be 
submitted in multiples of a thousand. Municipal bonds may be submitted 
in quantities other than multiples of a thousand, and such submissions 
would be subject to the other provisions of this section that are 
applicable to submissions of trades in quantities other than multiples 
of a thousand (specifically, that such submissions be divided into 
separate

[[Page 27806]]

submissions of the round lot and odd lot quantity, and that odd lot 
quantities are processed on a trade-for-trade basis). Therefore, in 
addition to removing this incorrect statement, NSCC would add municipal 
bonds to these statements within this same section. NSCC does not 
believe that this change would significantly affect the respective 
rights or obligations of NSCC or Members using this service because 
Members that are currently submitting municipal bonds in quantities of 
a thousand may continue to do so, and Members that submit municipal 
bonds in quantities other than multiples of a thousand may do so 
subject to the rules already described in this section.
    Second, NSCC is proposing to revise Procedure II, Section D, 2(A), 
which specifically describes processing of when-issued securities. The 
special processing rules within this section do not apply to when-
issued corporate bonds, which are instead processed in the same manner 
as all other transactions in corporate bonds. Therefore, this Procedure 
II, Section D, 2(A) incorrectly refers to corporate bonds and the 
proposed change to remove references to corporate bonds would correct 
this error. This proposed rule change would clarify that the provisions 
of this subsection apply only to transactions in municipal securities. 
NSCC does not believe that this change would significantly affect the 
respective rights or obligations of NSCC or Members using this service 
because Members would be able to continue to submit when-issued 
corporate bonds, and such securities would be processed through the 
regular processing rules.
(ii) Proposed Changes To Add a Trade Date Comparison Tolerance
    NSCC is also proposing to amend Section C of Procedure II to 
include a comparison tolerance of 20 business days in order to improve 
the accuracy of the matching of submitted trade data. Currently, if two 
transactions are submitted that match in all other aspects as required 
by the Rules, but have different trade dates, NSCC uses the earlier of 
the two submitted trade dates in producing and recording a matched 
trade. Members that do not agree with the terms of a matched trade may 
submit an instruction to reverse a matched trade pursuant to Procedure 
II, Section C, 2(e). Therefore, this procedure will result in a matched 
trade if the counterparties submitted different trade dates in error, 
and Members are able to reverse that trade if the different trade dates 
were not submitted in error and the matched trade is incorrect.
    NSCC is now proposing to include a tolerance of 20 business days to 
the comparison criteria for trade dates in order to improve the 
accuracy of its trade comparison service. In order to implement this 
change, NSCC is proposing to amend Procedure II, Section C, 1(d) to 
make clear a trade would be deemed compared if the submitted trade data 
matches in all required respects other than trade date, and the trade 
dates submitted are within 20 business days of each other. Under the 
proposed rule change, NSCC would continue to use the earlier of the 
submitted trade dates in the resulting compared trade. The proposed 
rule change would also make clear that a trade would remain uncompared 
if the trade dates submitted are not within the 20 business day 
tolerance. Members would still have the ability to submit instructions 
to reverse a trade if they disagree with the terms of a matched trade.
    NSCC believes trade dates submitted for a trade that matches in all 
other required respects but are different by more than 20 business days 
are more likely submitted in error. For example, one counterparty may 
enter a trade date of March 1, 2018 and the other counterparty may 
enter for the same trade a trade date of March 1, 2008 by mistyping the 
year of the trade date. Under the current rules, NSCC would match the 
trade data and report a compared trade with a trade date of March 1, 
2008, the earlier of the submitted trade dates, and the counterparties 
would have to submit instructions to either delete or reverse that 
trade, as appropriate. NSCC believes the proposed rule change would 
result in fewer trades that are compared using an earlier trade date 
that was submitted in error, and would result in more accurate 
comparison processing.
2. Statutory Basis
    NSCC believes that the proposed changes are consistent with the 
Section 17A(b)(3)(F) of the Act, which requires, in part, that the 
rules of a registered clearing agency be designed to promote the prompt 
and accurate clearance and settlement of securities transactions, for 
the reasons described below.\8\ The proposed rule change would increase 
transparency of the Rules by clarifying and enhancing the descriptions 
of the CMU securities comparison service. In this way, the proposed 
changes would ensure that the Rules remain transparent, accurate and 
clear, which would enable Members to readily understand their rights 
and obligations in connection with the use of this service. 
Additionally, the proposal to add a 20 business day tolerance for 
comparison of trade dates would improve the accuracy of the comparison 
service. Eligible transactions that are submitted for comparison may 
also be processed for clearance and settlement through NSCC's CNS 
Accounting System or the Balance Order Accounting system, as 
applicable. Therefore, by improving the transparency of these Rules and 
the accuracy of the comparison service, resulting in fewer trades 
compared at an incorrect trade date, the proposed changes would also 
promote the prompt and accurate clearance and settlement of securities 
transactions, consistent with Section 17A(b)(3)(F) of the Act.\9\
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    \8\ 15 U.S.C. 78q-1(b)(3)(F).
    \9\ Id.
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    Rule 17Ad-22(e)(23)(i) under the Act requires, in part, that NSCC 
establish, implement, maintain and enforce written policies and 
procedures reasonably designed to provide for publicly disclosing all 
relevant rules and material procedures.\10\ As described above, the 
proposed rule change would improve the transparency, clarity and 
accuracy of the Rules, such that these provisions of the Rules would 
better disclose all relevant and material aspects of the comparison 
service. Therefore, NSCC believes the proposed rule changes are 
consistent with Rule 17Ad-22(e)(23)(i).\11\
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    \10\ 17 CFR 240.17Ad-22(e)(23)(i).
    \11\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    NSCC does not believe that the proposed rule changes would have any 
impact, or impose any burden, on competition. The proposed rule changes 
would improve Members' understanding of their rights and obligations 
with respect to the use of this service, and would improve the accuracy 
of the comparison service with respect to trade dates. These proposed 
changes would be applicable to all Members that utilize this comparison 
service, and would not alter Members' rights or obligations. Therefore, 
NSCC does not believe that the proposed rule changes would have any 
impact on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    NSCC has not solicited or received any written comments relating to 
this proposal. NSCC will notify the

[[Page 27807]]

Commission of any written comments that it receives.

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) of the Act \12\ and paragraph (f) of Rule 19b-4 
thereunder.\13\ At any time within 60 days of the filing of the 
proposed rule change, the Commission summarily may temporarily suspend 
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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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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 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 email to [email protected]. Please include 
File Number SR-NSCC-2018-002 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NSCC-2018-002. This file 
number should be included on the subject line if email 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 website (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 website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of NSCC and on NSCC's website 
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NSCC-2018-002 and should be submitted on 
or before July 5, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12752 Filed 6-13-18; 8:45 am]
BILLING CODE 8011-01-P