[Federal Register Volume 60, Number 1 (Tuesday, January 3, 1995)]
[Notices]
[Pages 155-156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32251]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35148; File No. SR-NSCC-94-19]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change To Settle Certain
Mutual Fund Services Transactions in Same Day Funds
December 23, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\ notice is hereby given that on November 8, 1994, 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) (1988). [[Page 156]]
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change consists of modifications to NSCC's rules
relating to Mutual Fund Services transactions to allow NSCC to make and
receive same-day funds payments in connection with the settlement of
certain mutual fund transactions.
II. 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to enable NSCC to offer
same-day funds money settlement capabilities as part of its Fund/Serv
Service. Currently, NSCC's Fund/Serv service processes mutual fund
transactions in which the money settlement occurs in next-day funds.
Money settlement for money market and no-load mutual fund transactions
occurs in same-day funds and cannot presently be accommodated by NSCC's
Fund/Serv service. The proposed rule change will permit NSCC to make
and receive same-day funds payments in connection with the settlement
of money market and no-load mutual fund transactions.\2\
\2\NSCC presently receives same-day funds payments from Fund
Members and Mutual Fund Processors for dividend amounts owed and
processed through NSCC's Networking service and for commission
amounts owed and processed through NSCC's Commission Settlement
Service.
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NSCC will not net a member's same-day funds debit or credit with
the member's next-day funds debit or credit. Accordingly, the proposed
rule change modifies NSCC Rule 12 to clarify that there will be more
than one mutual funds settling trades summary which will reflect
amounts payable to or payable by NSCC for the settlement of Mutual Fund
Services transactions. NSCC will produce a mutual funds settling trades
summary that will evidence the member's same-day funds mutual funds
settlement obligation and a separate mutual funds settling trades
summary that will evidence the member's mutual funds obligation
settling in next-day funds. The proposed rule change also makes
technical changes to Sections B and C of NSCC's Rule 52 to conform the
language regarding money settlement and the cross-references to NSCC's
settlement rule.
NSCC believes that the proposed rule change is consistent with
Section 17A of the Act and the rules and regulations thereunder because
it will facilitate the prompt and accurate clearance and settlement of
securities transactions.
B. Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will have an
impact 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.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within thirty-five days of the date of publication of this notice
in the Federal Register or 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
finding or (ii) as to which the self-regulatory organization 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.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street N.W., Washington, D.C. 20549.
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 N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal offices of NSCC. All
submissions should refer to File No. SR-NSCC-94-19 and should be
submitted by January 24, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\3\
\3\17 CFR 200.30-3(a)(12) (1994).
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Jonathan G. Katz,
Secretary.
[FR Doc. 94-32251 Filed 12-30-94; 8:45 am]
BILLING CODE 8010-01-M