[Federal Register Volume 76, Number 118 (Monday, June 20, 2011)]
[Notices]
[Pages 35931-35933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-15174]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64666; File No. SR-NSCC-2011-03]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Analytic Reporting Service
June 14, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on June 2, 2011, the National
Securities Clearing Corporation (``NSCC'') filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared
primarily by NSCC. NSCC filed the proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act \2\ and Rule 19b-4(f)(4) thereunder
\3\ 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\ 15 U.S.C. 78s(b)(3)(A)(iii).
\3\ 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of Terms of Substance of
the Proposed Rule Change
The proposed rule change clarifies provisions related to the
Analytic Reporting Service.
II. Self-Regulatory Organization's Statement of 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.
A. Self-Regulatory Organization's Statement of Purpose of, and
Statutory Basis for, the Proposed Rule Change
Under the proposed rule change, NSCC will amend Rule 57 (Insurance
and Retirement Processing Services), Section 12 (Analytic Reporting
Service) to clarify (i) the scope of information included within the
Analytic Reporting Service and (ii) the opt-out provisions
[[Page 35932]]
applicable to the Analytic Reporting Service with the goal of providing
greater transparency to NSCC Members and Limited Members.\4\ The rule
change, which can be viewed as filed by NSCC on its Web site at http://www.dtcc.com/downloads/legal/rule_filings/2011/nscc/2011-03.pdf,
include the following:
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\4\ The Analytic Reporting Service provides NSCC Members and
Limited Members with the ability to perform market analysis based on
Insurance Processing Service (``IPS'') Data. This market analysis
(commonly referred to as ``benchmarking data'') allows users of the
service to obtain and compare aggregated data from different
perspectives. Securities Exchange Act Release No. 63604 (Dec. 23,
2010), 75 FR 82115 (Dec. 29, 2010).
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1. Change in Name
The original name of the service was the ``Analytics Reporting
Service.'' Based on further discussions, NSCC has determined that it
will call the service the ``Analytic Reporting Service'' (i.e.,
Analytic will be singular and not plural).
2. Scope of the Release of Clearing Data
``Clearing Data,'' as defined in NSCC's Rule 49, includes data
received by NSCC for inclusion in the clearance and settlement process
of NSCC or such data, reports, or summaries produced as a result of
NSCC processing such transaction data. In order to clarify the
information that will be released as part of the Analytic Reporting
Service, NSCC is revising Rule 57, Section 12, to define the term
``Analytics Data'' to mean ``aggregated information related to the
insurance products market, including benchmarking information and
league tables.'' The intent of this change is to clarify the scope and
extent of the data that will be released as part of the Analytic
Reporting Service.
3. Opt-Out Provision
NSCC Members and Limited Members are provided with the opportunity
to opt-out of having information attributed to them as part of the
league tables because certain NSCC Members and Limited Members may
consider this to be a release of proprietary or confidential
information. In order to clarify the relationship between the Analytic
Reporting Service opt-out provisions and Rule 49, Section 12 of Rule 57
is being amended to specifically state that those NSCC Members or
Limited Members that do not opt-out in the manner described in section
12 of Rule 57 are deemed to have consented to the release of their IPS
Data as part of the Analytics Data for the purposes of Rule 49.
In order for an IPS Member to opt-out of having information
attributed to itself prior to the service becoming available, an IPS
Member must notify NSCC in writing during the initial ninety (90) day
opt-out period. NSCC will announce the beginning of this ninety (90)
day period through an Important Notice. A new IPS Member may opt-out by
providing NSCC with written notice of its election to opt-out at any
time prior to activation of its account. Once the Analytic Reporting
Service commences to include the information of an IPS Member, the IPS
Member may elect to opt-out at any time by providing NSCC with thirty
(30) days' written notice.
By opting-out, an IPS Member is prohibiting NSCC from attributing
Analytics Data in any discernable manner to that IPS Member. However,
opting-out does not prohibit NSCC from including the IPS Member's
information for purposes of benchmarking in a manner that does not
identify the specific IPS Member. By opting-out, the IPS Member also
permits NSCC to disclose that the specific Analytics Data attributable
to the particular IPS Member is not included in certain types of data
(e.g., in the production of league tables, NSCC will disclose which IPS
Members have not been included in the league tables). This disclosure
will provide transparency to all IPS Members and will assist in the
usability of the Analytics Data.
As stated in the original Analytic Reporting Service filing,\5\ an
IPS Member that opts-out will forfeit any portion of NSCC's annual
refund, if any, that is directly attributable to the revenue generated
by the Analytic Reporting Service.
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\5\ Supra note 4.
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NSCC states that the proposed change is consistent with the
requirements set forth under Section 17A of the Act \6\ because it will
permit NSCC Members and Limited Members to enhance their monitoring and
analysis of their respective businesses and is designed to foster
cooperation and coordination with persons engaged in the clearance and
settlement of securities transactions, to remove impediments to and
perfect the mechanism of a national system for the prompt and accurate
clearance and settlement of securities transactions, and, in general,
to protect investors and the public interest.
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\6\ 15 U.S.C. 78q-1.
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B. Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that 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
NSCC has not solicited or received written comments relating to the
proposed rule change. NSCC will notify the Commission of any written
comments it receives.
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)(iii) of the Act \7\ and Rule 19b-4(f)(4) \8\
thereunder because the proposed rule change effects a change in an
existing service of NSCC that (i) does not adversely affect the
safeguarding of securities or funds in NSCC's custody or control or for
which it is responsible and (ii) does not significantly affect the
respective rights of NSCC or persons using the service. 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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\7\ Supra note 2.
\8\ Supra note 3.
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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 e-mail to [email protected]. Please include
File No. SR-NSCC-2011-03 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File No. SR-NSCC-2011-03. 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
[[Page 35933]]
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 Web site 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 a.m. and 3
p.m. Copies of such filings also will be available for inspection and
copying at NSCC's principal office and NSCC's Web site at http://www.dtcc.com/downloads/legal/rule_filings/2011/nscc/2011-03.pdf. 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 No. SR-NSCC-2011-03 and should be
submitted on or before July 11, 2011.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-15174 Filed 6-17-11; 8:45 am]
BILLING CODE 8011-01-P