[Federal Register Volume 86, Number 94 (Tuesday, May 18, 2021)]
[Notices]
[Pages 26999-27003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10392]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91881; File No. SR-NSCC-2021-006]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change To Make Clarifications, Corrections and Certain Other 
Changes to the NSCC Rules & Procedures

May 12, 2021.
    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 May 7, 2021, 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 19b-4(f)(4) thereunder.\4\ 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 NSCC 
Rules & Procedures (``Rules'') in order to (i) correct or clarify the 
use of certain defined terms in the Rules, (ii) make certain 
clarifications in the Rules, (iii) make certain technical changes to 
the Rules, (iv) add a disclaimer regarding trademarks and servicemarks 
in the Rules and (v) change certain notice provisions relating to rule 
changes, each as described in more detail below.\5\
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    \5\ Terms not defined herein are defined in the Rules, available 
at http://dtcc.com/~/media/Files/Downloads/legal/rules/
nscc_rules.pdf.
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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 (i) correct or clarify the use of certain 
defined terms in the Rules, (ii) make certain clarifications in the 
Rules, (iii) make certain technical changes to the Rules, (iv) add a 
disclaimer regarding trademarks and servicemarks in the Rules and (v) 
change certain notice provisions relating to rule changes, each as 
described in more detail below.
(i) Proposal To Correct the Use of Certain Defined Terms in the Rules
    Certain capitalized terms are used but not defined, certain terms 
are defined but the defined terms are not used consistently and certain 
defined terms are duplicative in the Rules. NSCC is proposing to 
correct and clarify the use of certain defined terms in the Rules as 
follows:

 Move the defined term ``Affiliate'' from Rule 4A to Rule 1 as 
the term is used in a number of places in the Rules and remove ``, as 
defined in Rule 4A'' after the use of the term Affiliate in Section 7 
of Rule 7 and Section A of Procedure II
 clarify the definitions of ``Board'' and ``Board of 
Directors'' in Rule 1 to ensure that it is clear that both terms are 
defined and have the same meaning
 capitalize ``business day'' throughout the Rules to reflect 
that it is a defined term
 add a defined term ``Exchange Act'' in Rule 1 for the 
Securities Exchange Act of 1934, as amended and replace ``Securities 
Exchange Act of 1934, as amended'' and ``Securities Exchange Act of 
1934'' and ``Act'' with the new defined term in a number of places in 
the Rules
 capitalize ``affiliate'' in the definition of ``Family-Issued 
Securities'' in Rule 1 to reflect that it is a defined term
 add a defined term ``GAAP'' in Rule 1 as the abbreviation is 
currently used in a number of places in the Rules to describe generally 
accepted accounting principles, consistently applied
 delete ``(or IMA Member)'' from the definition of ``Investment 
Manager/Agent Member'' in Rule 1 and delete ``IMA'' as a defined term 
in Section 2(j) of Rule 2 as they are duplicative of an existing 
defined term ``Investment Manager/Agent Member'' that has the same 
meaning; replace the use of ``IMA Members'' in a footnote in Rule 2A 
with ``Investment Manager/Agent Members'' using the existing defined 
term Investment Manager/Agent Member
 add a defined term ``NSCC'' in Rule 1 as the term is currently 
used in a number of places in the Rules to describe NSCC
 add a defined term ``SEC'' in Rule 1 for the Securities 
Exchange Commission and replace ``Securities Exchange Commission,'' 
``U.S. Securities and Exchange Commission'' and ``Commission'' with the 
defined term in a number of places in the Rules
 change reference of ``Non-U.S.'' to ``non-U.S.'' in a footnote 
in Rule 2A to reflect that Non-U.S. is not a defined term
 use the existing defined term ``NSCC website'' rather than 
other descriptions of the NSCC website such as the ``Corporation's 
website'' and ``website'' in Section 2 of Rule 2B and ``website'' and 
``NSCC's website'' in Section 7 of Rule 45; remove a duplicative 
definition of NSCC website in Section 7 of Rule 45
 capitalize ``corporation'' in Section 4 of Rule 7 to reflect 
the existing defined term
 use the existing defined term ``CFTC'' in place of ``Commodity 
Futures Trading Commission'' in Section 6 of Rule 7 and in place of 
``Commodities Futures Trading Commission'' in, Section (b) of Rule 49
 change ``Guidelines'' to ``guidelines'' in Section 2(b)(vii) 
of Rule 15 to reflect that Guidelines is not a defined term
 change references to ``Time of Insolvency'' to ``time of 
insolvency'' in Section 4 of Rule 45 to reflect that the term is not 
defined in the Rules
 capitalize ``rules'' in Section 7 of Rule 45 and in Section 
C(3) of Rule 52 to reflect the existing defined term
 change ``Fund/Serv Eligible Fund'' to ``Fund/SERV Eligible 
Fund'' in Section 12 of Rule 50 to reflect the correct capitalization 
of the defined term

[[Page 27000]]

 replace ``the Fund/SERV Service'' with ``Fund/SERV'' in a 
footnote in Section A.2 of Rule 52 and Section A.10 of Rule 52 to 
reflect that the defined term Fund/SERV is referring to the Fund/SERV 
service
 remove references of ``NSCC'' and ``NSCC full service'' before 
``Members'' and ``Member'' in Section 1 of Rule 54 and Section A of 
Procedure XVII as they are unnecessary
 capitalize ``balance'' in the phrase ``Net Debit balance'' and 
capitalize ``net credit balance'' and ``net debit balance'' in Section 
2 of Rule 55 to reflect the existing defined terms
 capitalize the words ``registered clearing agencies'' in a 
number of places in Section VII of Addendum A to reflect the existing 
defined term
 replace ``Investment Company'' with ``investment company'' in 
Section 1.A(v) of Addendum B to reflect that it is not a defined term
 replace ``Principal Underwriter'' with ``principal 
underwriter'' in Section 3.A(i) of Addendum B to reflect that it is not 
a defined term
 replace ``Investment Company'' with ``investment company'' in 
Section 3.A(ii) of Addendum B to reflect that it is not a defined term
 replace ``Investment Adviser'' with ``investment adviser'' in 
Section 3.A(iii) of Addendum B to reflect that it is not a defined term
 replace ``Services'' with ``services'' in Section 3.A(vi) of 
Addendum B to reflect that it is not a defined term
 replace ``Investment Company'' with ``investment company'' in 
Section 5.A(v) of Addendum B to reflect that it is not a defined term
 replace ``Principal Underwriter'' with ``principal 
underwriter'' in Section 6.A(vi) of Addendum B to reflect that it is 
not a defined term
 replace ``Investment Adviser'' with ``investment adviser'' in 
Section 6.A(vii) of Addendum B to reflect that it is not a defined term
 capitalize the word ``system'' in the reference to ``Federal 
Reserve system'' in Section 10.A.(iii) of Addendum B to be consistent 
with the use of the reference to Federal Reserve System in other 
sections of the Rules
 add ``of 1940, as amended'' after Investment Company Act in 
Section 10.A(vi) of Addendum B to reflect that it is not a defined term
 replace ``registered clearing agencies'' and ``SEC registered 
clearing agencies'' with ``Registered Clearing Agencies'' in Addendum L 
to reflect that it is a defined term
 add a definition of ``AML'' in Addendum O to clarify that AML 
refers to Anti-Money Laundering
(ii) Proposal To Make Certain Clarifications in the Rules
    NSCC is proposing to make the following changes in the Rules to 
better clarify the meaning of certain provisions and the usage of 
certain defined terms:

 Change ``acting on delegated authority'' to ``acting under 
delegated authority'' in the definition of ``Board'' and ``Board of 
Directors'' in Rule 1 to reflect the more common phraseology
 clarify that the NSCC website may include DTCC's website in 
the definition of ``NSCC website'' in Rule 1
 remove ``decline or'' or ``declined or'' in each instance 
where the phrase ``decline or cease to act'' or ``declined or ceased to 
act'' is used in a number of places in the Rules to reflect that 
declining to act is not different from ceasing to act in the context 
used in the Rules
 add ``and set forth in these Rules & Procedures'' in the 
definition of ``Procedures'' to clarify that the defined term 
Procedures is referring to the Procedures set forth in the NSCC Rules & 
Procedures
 make ``General Rules and Regulations'' lowercase in the 
definition of ``Security'' in Rule 1 to reflect that it is not a 
defined term and add ``promulgated'' to reflect that it is referring to 
general rules and regulations promulgated under the Exchange Act
 replace ``Corporation'' with ``entity'' in two places in 
Section 1(G)(v) of Rule 2A to reflect that the phrase is referring to 
any entity that engages in clearance and settlement activities and not 
to NSCC
 replace the phrase ``SEC Rule 17a-11'' with ``Rule 17a-11 of 
the Exchange Act'' in Section 2.A(b) of Rule 2B to reflect that it is 
referring to Rule 17a-11 promulgated under the Exchange Act
 replace a reference to the ``Securities and Exchange 
Commission'' with ``Exchange Act'' in Section 1(a) of Rule 3 to clarify 
that Rule 10b-17 is referring to Rule 10b-17 promulgated under the 
Exchange Act
 add Mutual Fund/Insurance Services Members and AIP Members as 
Limited Members that are required to file signatures in Section 2 of 
Rule 5 in order to formalize that NSCC requires those Limited Members 
to file signatures in the same manner as the other Members and Limited 
Members listed in that section
 replace the heading ``Sec'' with ``SEC'' in Section 4 of Rule 
9 to conform to usage of section references in other Rules
 remove the word ``for'' in Section 1(a) of Rule 11 as it is 
unnecessary
 change the phrase ``information and otherwise'' to 
``information or otherwise'' in Section 4 of Rule 15 to reflect that 
the phrase is intended to mean that a participant could be subject to a 
fine for failure to furnish information or for failure to otherwise 
comply with the requirements of Rule 15
 capitalize ``important notice'' in Section 3 of Rule 18 to 
conform to other usage of that term in the Rules
 replace ``Commission Rules 8c-1 and 15c2-1'' with ``Rules 8c-1 
and 15c2-1 of the Exchange Act'' in Section 8(b) of Rule 18 to reflect 
that it is referring to rules promulgated under the Exchange Act
 change the reference of the title ``Vice President'' to 
``Executive Director'' in Rule 23 to reflect that NSCC changed the 
title of Vice President to Executive Director \6\
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    \6\ In 2018, the Securities and Exchange Commission 
(``Commission'') approved NSCC's proposed rule change to amend 
NSCC's By-Laws to, among other things, change the title of ``Vice 
President'' to ``Executive Director.'' Securities Exchange Act 
Release No. 82916 (March 20, 2018), 83 FR 12974 (March 26, 2018) 
(SR-NSCC-2018-001).
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 clarify in Rule 26 that fee descriptions and charges are set 
forth in Addendum A by adding the following sentence: ``Please refer to 
Addendum A (Fee Structure) for fee descriptions and charges.''
 clarify in Rule 35 that the financial statements provided by 
NSCC are U.S. GAAP financial statements and that the audited financial 
statements include the independent auditors' report on the financial 
statements
 replace ``close'' with ``last day'' in two places in Rule 35 
to clarify that the close of each fiscal quarter is meant to be the 
last day of each fiscal quarter
 add ``or Procedure'' in Rule 36 to clarify that NSCC will 
notify Members, Limited Members and Registered Clearing Agencies of 
proposals to change, revise, add or repeal any Procedure as well as any 
Rule
 clarify in Rule 36 that NSCC will notify Members, Limited 
Members and Registered Clearing Agencies of any rule change proposals 
to any Rule or Procedure by posting the proposal on the NSCC website
 replace ``five'' with ``5'' in Sections 1 and 3 of Rule 37 to 
conform to other descriptions of the number of business days in Rule 37

[[Page 27001]]

 add ``decision'' after ``Panel's'' in Section 7 of Rule 37 to 
clarify that in subsection (iii) an action or proposed action shall be 
deemed final if a hearing has been held when the Corporation gives 
notice to the Interested Person of the Panel's decision
 change a reference of ``Rules, Procedures'' in Rule 38 to 
``Rules and Procedures'' to conform the phrase to other instances in 
the Rules and add a comma after the phrase for grammatical effect
 remove the references to NSCC delivering notice to an 
Interested Person's box maintained on NSCC's premises in Section 1 of 
Rule 45 because NSCC does not maintain boxes for Members, Limited 
Members or applicants
 add a heading title ``E. MF Info Xchange'' and place the MF 
Info Xchange description under the heading and remove the subsection 
reference ``SEC 6.'' in Rule 52 in order to reflect that MF Info 
Xchange is a separate service from Mutual Fund Profile Service \7\
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    \7\ MF Info Xchange was added to the Rules in 2018 as an 
enhancement of the Mutual Fund Profile Service. Securities Exchange 
Act Release No. 84611 (November 16, 2018), 83 FR 59427 (November 23, 
2018) (SR-NSCC-2018-010). Although it is still integrated with the 
Mutual Fund Profile Service, NSCC would like to market MF Info 
Xchange as a separate service and not just a function of the Mutual 
Fund Profile Service.
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 replace ``Securities and Commission Rule 15c3-3'' with ``Rule 
15c3-3 of the Exchange Act'' in Section 9(b)(vi) of Rule 53 to reflect 
that it is referring to a rule promulgated under the Exchange Act
 replace ``Securities and Commission Rule 17a-3'' with ``Rule 
17a-3 of the Exchange Act'' in Section 9(c)(ii) of Rule 53 to reflect 
that it is referring to a rule promulgated under the Exchange Act
 remove references to settlement of payments in Section 4 of 
Rule 57 as NSCC stopped settlement with respect to Licensing and 
Appointments in 2012 \8\
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    \8\ NSCC removed the settlement function of Licensing and 
Appointments in 2012 because it was not being used by Members or 
Limited Members but the references were not removed from the Rules 
at that time.
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 replace ``SEC Rule 15c3-3'' with ``Rule 15c3-3 of the Exchange 
Act'' in Section E(5) of Procedure VII to reflect that it is referring 
to a rule promulgated under the Exchange Act
 replace ``SEC Rule 15c3-3(d)(1)'' with ``Rule 15c3-3(d)(1) of 
the Exchange Act'' in Section E(5) of Procedure VII to reflect that it 
is referring to a rule promulgated under the Exchange Act
 replace ``NSCC's Rule & Procedures'' with ``these Rules and 
Procedures'' in Section D.2 of Procedure VIII to conform to usage 
throughout the Rules
 remove ``NSCC's'' and ``NSCC'' before Settling Banks in 
Section D.2 of Procedure VIII as the reference is unnecessary
 replace ``SEC Rule 15c3-1(a)(8)'' with ``Rule 15c3-1(a)(8) of 
the Exchange Act'' in Section 1.B.1 of Addendum B to reflect that it is 
referring to rules promulgated under the Exchange Act
 remove ``it is'' in Section 6.A(v) of Addendum B as it is 
unnecessary
 remove ``it is'' in Section 6.A(xi) of Addendum B as it is 
unnecessary
 add ``(as defined in Rule 53)'' in Section 10.A(xi) of 
Addendum B to reflect that AIP Manufacturer is defined in Rule 53
 replace ``under Section 4 of this Rule'' with ``in Rule 53'' 
in Section 10.A(xi) of Addendum B to reflect that Eligible AIP Products 
is defined in Rule 53
 replace ``SEC Rule 15c3-3'' with ``Rule 15c3-3 of the Exchange 
Act'' in Section I of Addendum G to reflect that it is referring to a 
rule promulgated under the Exchange Act
 add ``of the Exchange Act'' following Rule 19(b) in Addendum L 
to reflect that it is a rule promulgated under the Exchange Act
 change references of ``Non-US'' to ``non-U.S.'' in Addendum O 
to reflect that Non-US is not a defined term
 change reference of ``Standard Requirements'' to ``standard 
requirements'' in Addendum O to reflect that the term is not defined in 
the Rules
 change reference of ``US Entities'' to ``U.S. entities'' in 
Addendum O to reflect the correct abbreviation for U.S. and to reflect 
that entities is not defined in the Rules
 change a reference from ``the Corporation'' to ``NSCC'' in 
Addendum O to be consistent with other references to NSCC in Addendum O 
and to reflect the proposed defined term NSCC
(iii) Proposal To Make Certain Technical Changes in the Rules
    NSCC is proposing to make the following technical changes in the 
Rules to better clarify the meaning of certain provisions and to be 
consistent with other provisions in the Rules:

 Conform the use of dashes in Section 2 of Rule 2
 delete the parentheses in references to ``Rule 4(A)'' in Rule 
4(A) to conform to titles of other Rules
 conform the use of the abbreviation ``SEC'' for ``Section'' or 
to identify the sections in Rules 42, 44 and 60 and the use of letters 
to identify subsections in Section 4 of Rule 60 to be consistent with 
other Rules
 delete the parentheses in the titles of Rule 40, Rule 41 and 
Rule 60 to conform to titles in other Rules
 add tabs to the paragraphs in Rule 54 to conform with 
formatting in other Rules
 replace ``Section XII'' with ``Procedure XIII'' in Procedure I 
to reflect that Procedure XIII contains the definitions referred to in 
that paragraph
 remove a duplicative use of the word ``plus'' prior to 
subsection I.(A)(1)(d) of Procedure XV
 replace the subsection reference (i) with (h) in I.(A)(1) of 
Procedure XV
 replace the subsection reference (g) with (f) in I.(A)(2) of 
Procedure XV
 replace ``Rule 2A, Section 4 (Ongoing Monitoring (Surveillance 
Status))'' with ``Rule 2B, Section 4 (Ongoing Monitoring)'' in a 
footnote in Addendum B as that section is referring to Rule 2B, Section 
4
 delete the incorrect use of an apostrophe in Addendum J
 remove a reference to item ``seven'' in Addendum P as there is 
no item seven in Addendum P
(iv) Proposal To Add a Disclaimer Regarding Trademarks and Servicemarks 
in the Rules
    NSCC is proposing to add a disclaimer in a footnote to Rule 1 
regarding trademarks and servicemarks that appear or may appear in the 
future in the Rules. NSCC has adapted the disclaimer that appears in 
the Terms of Use page on The Depository Trust & Clearing Corporation's 
(``DTCC'') website for this purpose. The disclaimer would state that 
(i) all products and services provided by NSCC referenced in the Rules 
are either registered trademarks or servicemarks of, or trademarks or 
servicemarks of, DTCC or its affiliates, and (ii) other names of 
companies, products or services appearing in the Rules are the 
trademarks or servicemarks of their respective owners.
    While certain terms that are registered trademarks are denoted with 
a TM or a [supreg] in the Rules, NSCC believes that the addition of 
this disclaimer provides additional protection to the marks of DTCC 
and/or its affiliates as well as the marks of third parties.
(v) Proposal To Change Certain Notice Provisions Relating to Rule 
Changes
    NSCC is proposing to delete a requirement in Rule 33 that Members 
and Limited Members be given 10

[[Page 27002]]

business days' notice of any proposed amendment to the Procedures. NSCC 
is also proposing to replace ``immediately'' with ``promptly'' in Rule 
36 in order to provide that NSCC will promptly--but might not 
immediately--notify Members and Limited Members of any proposed rule 
changes. NSCC believes that the foregoing requirements are not 
necessary or practical because, as explained below, Members and Limited 
Members are already provided adequate notice of any changes or proposed 
changes to NSCC's Rules or Procedures through the rule change process.
    As a clearing agency registered with the Commission, the Securities 
Exchange Act of 1934 (the ``Act'') provides a clear framework under 
which NSCC's Rules are adopted and enforced. Under the rule change 
process, generally, before a proposed rule change may take effect, (i) 
the change and an explanatory statement must be filed with the 
Commission and posted by NSCC on the NSCC website, (ii) notice of the 
filing and the substantive terms or description of the change must be 
published by the Commission in the Federal Register for public review 
and comment, and (iii) the Commission must approve the change (or the 
change must otherwise be permitted to take effect). NSCC's Rules are 
filed with and reviewed by the Commission. As a clearing agency 
registered under Section 17A of the Act,\9\ a self-regulatory 
organization subject to Section 19 of the Act,\10\ and a systemically 
important financial market utility under Title VIII of Dodd-Frank Wall 
Street Reform and Consumer Protection Act of 2010 (``Dodd-Frank''),\11\ 
NSCC is required to follow: (1) A specified process \12\ whenever it 
proposes a new rule or a change or amendment to its Rules and (2) a 
specified process \13\ whenever it proposes to make a change to its 
rules, procedures or operations that could materially affect the nature 
or level of risks presented by NSCC.
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    \9\ 15 U.S.C. 78q-1.
    \10\ 15 U.S.C. 78s.
    \11\ 12 U.S.C. 5465(e)(1).
    \12\ This process is set forth in Section 19(b) of the Act and 
Rule 19b-4 thereunder. 15 U.S.C. 78s(b) and 17 CFR 240.19b-4.
    \13\ This process is set forth in Section 806(e) of Dodd-Frank 
and Rule 19b-4 thereunder. 12 U.S.C. 5465(e) and 17 CFR 240.19b-4.
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    These rule change processes provide notice to Members and Limited 
Members and provide an opportunity for those parties to comment on such 
changes. Rule 19b-4 under the Act requires that NSCC post any rule 
change proposals on its website within two business days after the 
filing of a proposed rule change,\14\ post any rule changes that are 
approved by the Commission within two business days after it has been 
notified of the Commission's approval \15\ and post any rule change 
within two business days of the Commission's notice of such proposed 
change for rule changes that are effective upon filing.\16\ NSCC 
complies--and will continue to comply--with such notice requirements 
which it believes are adequate.
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    \14\ 17 CFR 240.19b-4(l).
    \15\ 17 CFR 240.19b-4(m)(2).
    \16\ Id.
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2. Statutory Basis
    Section 17A(b)(3)(F) of the Act requires, in part, that the Rules 
be designed to promote the prompt and accurate clearance and settlement 
of securities transactions.\17\
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    \17\ 15 U.S.C. 78q-1(b)(3)(F).
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    NSCC believes that the proposed changes to (i) correct or clarify 
the use of certain defined terms in the Rules, (ii) make certain 
clarifications in the Rules, (iii) make certain technical changes to 
the Rules and (iv) add a disclaimer regarding trademarks and 
servicemarks in the Rules are consistent with Section 17(A)(b)(3)(F) of 
the Act \18\ because such changes would enhance the clarity and 
transparency of the Rules. By enhancing the clarity and transparency of 
the Rules, the proposed changes would allow Members and Limited Members 
to more efficiently and effectively conduct their business in 
accordance with the Rules, which NSCC believes would promote the prompt 
and accurate clearance and settlement of securities transactions. As 
such, NSCC believes that the proposed changes would be consistent with 
Section 17A(b)(3)(F) of the Act.\19\
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    \18\ Id.
    \19\ Id.
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    NSCC believes that the proposed changes would enhance the 
efficiency of NSCC's process for notifying its Members and Limited 
Members about changes to its Rules and Procedures. As discussed above 
in detail, NSCC believes that Members and Limited Members are already 
provided adequate notice of any rule changes, including changes to its 
Procedures, through the rule change process. As such, the requirements 
for NSCC to immediately provide notice of any proposal it has made to 
change any Rule and to provide ten Business Days' notice of any 
proposed amendment to the Procedures are impractical and unnecessary 
and therefore can negatively impact the efficiency of the process. 
Specifically, because NSCC is already subject to--and complies with--
the timeframes required by the Act and Dodd Frank, NSCC believes that 
self-imposed requirements to provide notice more quickly (in the case 
of proposed rule changes) or farther in advance (in case of changes to 
Procedures) than what is required by statute is unnecessary. In 
addition, NSCC believes that the requirements are impractical because 
(i)(x) the requirement to immediately give notice requires NSCC to 
coordinate an almost simultaneous submission of a proposed rule filing 
and notification to Members and Limited Members, and (y) Members and 
Limited Members would not be prejudiced by the delta between 
immediately and promptly; and (ii) the requirement to provide Members 
and Limited Members notice of changes to Procedures ten Business Days 
in advance, especially when such parties already receive adequate 
notice of the changes, could cause delays in the rule filing process 
and/or the implementation of an amended rule and procedure. 
Accordingly, NSCC believes that, by removing unnecessary and 
impractical timing requirements for notice, the proposed rule change is 
designed to enhance the efficiency of NSCC's notice process and 
implementation of the amended Rules and Procedures, thereby promoting 
the prompt and accurate clearance and settlement of securities 
transactions, as provided under such amended Rules and Procedures. As 
such, NSCC believes that the proposed changes would be consistent with 
Section 17A(b)(3)(F) of the Act.\20\
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    \20\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    NSCC does not believe the proposed rule changes to (i) correct or 
clarify the use of certain defined terms in the Rules, (ii) make 
certain clarifications in the Rules, (iii) make certain technical 
changes to the Rules, (iv) add a disclaimer regarding trademarks and 
servicemarks in the Rules and (v) change certain notice provisions 
relating to rule changes would impact competition. The proposed rule 
changes described in (i)-(iv) above would merely enhance the clarity 
and transparency of the Rules and would not affect NSCC's operations or 
the rights and obligations of the membership. While the proposed 
changes to the notice provisions described in (v) above would impact 
the rights and obligations of the Members and Limited Members to 
receive notices more quickly (in the case of proposed rule changes) or 
farther in advance (in case of changes to Procedures) than

[[Page 27003]]

what is required by statute, the impact of the proposed changes on the 
Members and Limited Members would be minimal. As discussed above, NSCC 
believes that the proposed changes to the notice provisions are 
removing unnecessary and impractical timing requirements for notices, 
and Members and Limited Members would continue to receive adequate 
notice under the rule change process and continue to be treated equally 
with respect to such notices. As such, NSCC believes the proposed rule 
changes would not 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 received or solicited any written comments relating to 
this proposal. 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) \21\ of the Act and paragraph (f) \22\ of Rule 19b-4 
thereunder. 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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    \21\ 15 U.S.C 78s(b)(3)(A).
    \22\ 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-2021-006 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSCC-2021-006. 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 DTCC's website 
(https://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-2021-006 and should be submitted on 
or before June 8, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-10392 Filed 5-17-21; 8:45 am]
BILLING CODE 8011-01-P