[Federal Register Volume 78, Number 5 (Tuesday, January 8, 2013)]
[Notices]
[Pages 1292-1293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00083]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68562; File No. SR-NSCC-2012-11]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Revise Its Fee Structure as It Relates to Certain
Insurance and Retirement Processing Services and To Remove Reference to
and the Fees Related to FundSPEED, a Discontinued Service
January 2, 2013.
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 December 21, 2012, 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. NSCC
filed the proposed rule change pursuant to Section 19(b)(3)(A)(ii) \3\
of the Act and Rule 19b-4(f)(2) \4\ thereunder, so that the proposed
rule change 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)(ii).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change is to revise Addendum A (Fee Structure) of
NSCC's Rules & Procedures (``Rules'') as it relates to certain
Insurance and Retirement Services (``I&RS'') fees and remove reference
to FundSPEED, a discontinued service.
II. Clearing Agency'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.\5\
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\5\ The Commission has modified the text of the summaries
prepared by NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
(a) Proposal Overview
The purpose of the proposed rule change is to revise NSCC's fee
schedule (as listed in Addendum A of the Rules), as it relates to
certain I&RS, to replace the current fee structure with a tiered fee
structure. This change is being made in order to simplify the fee
schedule with respect to these services. In connection with this
change, certain I&RS fees have been changed in order to align those
fees with the costs of delivering the related services, with the
expectation that the fee changes, in the aggregate, will be revenue
neutral to NSCC.
The Addendum A I&RS fee schedule changes are:
Eliminating the Business Attachment subpart and associated
fees;
Eliminating the Licensing and Appointments subpart and
associated fees;
Eliminating the Request for Replacement subpart and
associated fees;
Eliminating the Request for Replacement Status (including
incremental statuses) subpart and associated fees;
Eliminating the Inforce Transaction Fees section and
associated fees; and
Adding an Other Services Fees section, comprised of the
following five tiers and associated fees and services:
1. TIER 1--$0.05--All Attachments (per attachment, per side);
2. TIER 2--$0.15--Licensing and Appointments (L&A) Periodic
Reconciliation (per item);
3. TIER 3--$0.35--Licensing and Appointments (L&A) Transaction (per
item), Registered Representative Change Confirm (per transaction, per
side), Brokerage Identification Number Change Request (per transaction,
per side), Brokerage Identification Number Change Confirm (per
transaction, per side), Values Inquiry (per inquiry, includes response,
per side);
4. TIER 4--$0.65--Customer Account Transfer Output (per
transaction, charged to Insurance Carrier/Retirement Services Member
only), Customer Account Transfer Confirm (per transaction, per side),
Settlement Processing (per transaction, per side), Request for
Replacement Status (a/k/a Pending Case Status)--Receiving Carrier (per
Request for Replacement Status), Request for Replacement Status (a/k/a
Pending Case Status)--Deliverer (per Request for Replacement Status),
Registered Representative Change Request (per transaction, per side),
Time Expired Transaction (per transaction, per side); and
5. TIER 5--$1.25--Fund Transfer (per request, per side),
Withdrawals (per request, per side), Arrangements (per request, per
side), Request for Replacement--Delivering Carrier (per request),
Request for Replacement--Receiving Carrier (per request). NSCC is also
removing reference to the I&RS ``Beneficiary Update Request'' and
``Beneficiary Confirm'' in Addendum A of the Rules. These functions do
not require a line item in the fee schedule because there is no charge
for these services.
In addition, NSCC is making a technical change to remove from
Addendum A of the Rules reference to and the fees related to FundSPEED,
as this service was discontinued.
The above changes took effect on January 1, 2013.
(b) Statutory Basis
NSCC believes the proposed rule is consistent with the requirements
of the Act, specifically Section 17A(b)(3)(F),\6\ and the rules and
regulations thereunder applicable to NSCC because it updates NSCC's fee
schedule to align fees with the costs of delivering services. As such,
it provides for the equitable allocation of fees among NSCC's Members.
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\6\ 15 U.S.C. 78q-1(b)(3)(F).
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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.
[[Page 1293]]
(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 or received. 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 forgoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \8\ 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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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
\8\ 17 CFR 240.19b-4(f)(2).
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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 No. SR-NSCC-2012-11 on the subject line.
Paper Comments
Send 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 Number SR-NSCC-2012-11. 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 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
10:00 a.m. and 3:00 p.m. Copies of such filings will also be available
for inspection and copying at the principal office of NSCC and on
NSCC's Web site at http://www.dtcc.com/downloads/legal/rule_filings/2012/nscc/SRO-NSCC-2012-11.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 Number SR-NSCC-2012-11
and should be submitted on or before January 29, 2013.
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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-00083 Filed 1-7-13; 8:45 am]
BILLING CODE 8011-01-P