[Federal Register Volume 78, Number 99 (Wednesday, May 22, 2013)]
[Notices]
[Pages 30362-30363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12166]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69596; File No. SR-NSCC-2013-06]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Modify Fees Related to Portfolio Composition File
Reporting in Addendum A of Its Rules and Procedures
May 16, 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 May 3, 2013, 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 modify the fee schedule related to
NSCC's Portfolio Composition File Reporting in Addendum A of NSCC's
Rules and Procedures (``Rules''), as described below.
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
1. Purpose
The purpose of the proposed rule change is for NSCC to revise its
fee schedule (as listed in Addendum A of its Rules \6\) as it relates
to charges for reports on Index Receipt Portfolio Composition Files.
Portfolio Composition File reports, as currently offered, contain
information on all Index Receipt Portfolios eligible for processing by
NSCC (``Legacy Files''). NSCC releases two Legacy Files each business
day--one file for domestic portfolios and one for foreign portfolios.
The files are offered both as machine readable output (``MRO'') and
print image files. The fee associated with a Member's subscription to
the Legacy Files is $125 per file per month.
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\6\ NSCC Rules, Addendum A, http://dtcc.com/legal/rules_proc/nscc_rules.pdf.
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Pursuant to this proposed rule change, NSCC implemented new fees
for the offering of an enhanced reporting interface that allows Members
to receive a Portfolio Composition File that contains only the Index
Receipt
[[Page 30363]]
Portfolios to which a Member subscribes (``Enhanced Files''). Fees for
the Enhanced Files are charged in relation to the number of portfolios
received by the Member on an average, daily basis per month. The
Enhanced Files are available as MRO files and as a web-based interface
from which Participants may download and print reports.\7\
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\7\ The Enhanced Files also allow Members to view additional
information with respect to a portfolio, including breakdowns of
asset class and ``cash-in lieu'' components that are not otherwise
NSCC-eligible.
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NSCC continues to make available to Members subscriptions to Legacy
Files at the current fee rates.
Revision to Fee Schedule
Pursuant to the fee schedule in Addendum A of NSCC's Rules, Members
are currently charged $125 per Legacy File.\8\ While the availability
of and fees for Legacy Files are remaining unchanged, NSCC is now
charging the following fees to Members who subscribe to the Enhanced
Files:
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\8\ See NSCC Rules, Addendum A, supra note 6.
\9\ ``Units'' refers to the number of portfolio subscriptions
for each billing month. Unit charges are calculated by applying a
tiered fee structure to the average daily number of units subscribed
to by the Member in the billing month.
Subscription-Based Portfolio Composition File Reporting
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Fees Units \9\
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$5........................................ the first zero to 200
average daily units per
month.
$3........................................ the next 300 average daily
units per month (201-500).
$2........................................ for all average daily units
above 500 per month.
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The proposed rule change relates only to the enhanced reporting of
Portfolio Composition Files and does not otherwise impact Index Receipt
processing functionality.
Implementation Timeframe
The fee changes described above took effect on May 9, 2013.
Proposed Rule Changes
NSCC is amending Addendum A of its Rules to include the fee
schedule for ``Subscription-based Portfolio Composition File
Reporting,'' as shown above. No other changes to the Rules are
contemplated by this proposed rule change.
2. Statutory Basis
NSCC believes that the proposed rule change is consistent with the
requirements of the Act, as amended, specifically Section
17A(b)(3)(D),\10\ and the rules and regulations thereunder applicable
to NSCC because the change is aligning fees with the costs of
delivering the additional reports described above, thus providing for
the equitable allocation of reasonable fees among NSCC's Members.
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\10\ 15 U.S.C. 78q-1(b)(3)(D).
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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
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 \11\ and Rule 19b-4(f)(2) \12\ 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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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 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-2013-06 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 No. SR-NSCC-2013-06. 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://dtcc.com/legal/rule_filings/nscc/2013.php.
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-2013-06 and
should be submitted on or before June 12, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-12166 Filed 5-21-13; 8:45 am]
BILLING CODE 8011-01-P