regulatory organizations; proposed rule changes: National Securities Clearing Corp.,
[Federal Register: October 21, 1998 (Volume 63, Number 203)]
[Notices]
[Page 56280-56281]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21oc98-121]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40549; File No. SR-NSCC-98-11]
Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of a Proposed Rule Change to Modify NSCC's Rules Regarding Its Mutual Fund Services Transfer Service
October 14, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ notice is hereby given that on July 30, 1998, the National Securities Clearing Corporation (``NSCC'') filedwith the Securities and Exchange Commission (``Commission'') the proposed rule change (File No. SR-NSCC-98-11) 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.
\1\ 15 U.S.C. 78s(b)(1).
-
Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The proposed rule change will modify NSCC's procedures regarding its Mutual Fund Services transfer service.
-
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\
\2\ The Commission has modified the text of the summaries submitted by NSCC.
(A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
The proposed rule change will modify NSCC's rules regarding its Mutual Fund Services transfer service. The Mutual Fund Services transfer service enables fund members and mutual fund processors to transfer between each other the value of Fund/Serv eligible mutual fund shares or UIT units on an automated basis.
The proposed rule change will enable NSCC to implement a request by a users
[[Page 56281]]
advisory group to modify Section 21(c) of NSCC's Rule 52A so that the time frame between a delivering fund member's acknowledgment and confirmation is shortened thereby permitting ore expeditious transfers. Currently, a delivering fund member that has acknowledged a transfer request must confirm the value of the Fund/SERV eligible mutual fund shares or UIT units to be transferred by submitting a confirmation to NSCC no earlier than two days and no later than sixty business days after the submission of an acknowledgment. The proposed rule change will permit the delivering fund member to submit a confirmation no earlier than one day and, as is the case today, no later than sixty business days after the submission of an acknowledgment. The users advisory group has informed NSCC that a one day time frame is sufficient for the submission of a confirmation. NSCC will notify members by Important Notice of the specific implementation date, which is expected to be in December 1998.
NSCC believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder since it will facilitate the prompt and accurate clearance and settlement of securities transactions and, in general, will protect investors and the public interest.
(B) Self-Regulatory Organization's Statement of Burden on Competition
NSCC does not believe that the proposed rule change will have an impact on or impose a burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others
No written comments relating to the proposed rule change have been solicited or received. NSCC will notify the Commission of any written comments received by NSCC.
-
Date of Effectiveness of the Proposed Rule Change and Timing for Commission Acting
Within thirty-five days of the date of publication of this notice in the Federal Register within such longer period (i) as the Commission may designate up to ninety days of such date if it finds such longer period to be appropriate and publishes its reasons for so findings or (ii) as to which the NSCC consents, the Commission will:
(A) by order approve such proposed rule change or
(B) institute proceedings to determine whether the proposed rule change should be disapproved.
-
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. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filedwith 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 Room, 450 Fifth Street, NW., Washington, DC 20549. Copies of such filing will also be available for inspection and copying at the principal office of NSCC. All submissions should refer to the file number SR-NSCC-98-11 and should be submitted by November 12, 1998.
For the Commission by the Division of Market Regulation, pursuant to delegated authority. \3\
\3\ 17 CFR 200.30-3(a)(12).
Margaret H. McFarland, Deputy Secretary.
[FR Doc. 98-28194Filed10-20-98; 8:45 am]
BILLING CODE 8010-01-M
