Self-regulatory organizations; proposed rule changes: National Securities Clearing Corp.,
[Federal Register: December 8, 2004 (Volume 69, Number 235)]
[Notices]
[Page 71089-71090]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08de04-142]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-50780; File No. SR-NSCC-2004-08]
Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Fee Schedule for Fixed Income Products
December 1, 2004.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on November 10, 2004, the 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 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).
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Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change
The proposed rule change amends the trade comparison and trade recording fees relating to NSCC's fixed income products. The proposed fee changes will become effective January 1, 2005.
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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 parts of these statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change
NSCC's implementation of its real-time trade matching service (``RTTM'') has provided its corporate bond, municipal security, and unit investment trust (collectively, ``CMU'') participants with several benefits including real-time trade status information, reduced intraday exposures related to market
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risk, and a single pipeline for fixed income submissions in a standardized format for both trade matching and regulatory price reporting. Additionally, the RTTM Web service provides an input vehicle which offers real-time trade status information, sophisticated search tools, and report storage capabilities.
Currently there are two separate fees, one for trade recording ($0.45) and one for trade comparison ($0.75). Because the same process is used for both of these functions, NSCC believes that charging two different fee amounts for them is no longer justified. Furthermore, NSCC is proposing that they each be increased to $1.00.
NSCC believes that the proposed rule change is consistent with the requirements of Section 17A of the Act and the rules and regulations thereunder because it provides for a reasonable fee to cover costs.
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe the proposed rule change will have any 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 proposed rule change have not yet been solicited nor received. NSCC will notify the Commission of any written comments received by NSCC.
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Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action
Because the foregoing rule change changes fees imposed by NSCC, it has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act \3\ and Rule 19b-4(f)(2) \4\ promulgated thereunder. At any time within sixty days of the filing of the 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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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 rule-comments@sec.gov. Please include
File Number SR-NSCC-2004-08 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-2004-08. 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 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-2004-08 and should be submitted on or before December 21, 2004.
For the Commission, by the Division of Market Regulation, pursuant to delegated authority.\5\
\5\ 17 CFR 200.30-3(a)(12).
Margaret H. McFarland, Deputy Secretary. [FR Doc. E4-3532 Filed 12-7-04; 8:45 am]
BILLING CODE 8010-01-P
