[Federal Register Volume 61, Number 61 (Thursday, March 28, 1996)]
[Notices]
[Pages 13912-13913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7500]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37001; File No. SR-NSCC-96-07]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of a Proposed Rule Change To Permit NSCC
To Charge and To Collect From Members Charges Imposed by Certain Third
Parties
March 21, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 19, 1996, the
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change (File No. SR-NSCC-96-07) 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. Sec. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to expand NSCC's
authority to charge and to collect from members fees imposed by third
parties.
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.\2\
\2\ The Commission has modified the text of the statements
submitted by NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
NSCC proposes to expand its authority to charge and to collect from
its members fees imposed by certain third parties. NSCC's current rules
permit NSCC to charge members for fees imposed by self-regulatory
organizations or other security industry organizations or entities with
which NSCC has entered into agreements. The proposed modifications to
NSCC's rules will permit NSCC to include on members' settlement
statements charges imposed by other entities or organizations with
which NSCC has entered into agreements and which provide services or
equipment to members which are integral to the services provided by
NSCC.
From time to time, third parties which have entered into agreements
with NSCC and which provide NSCC members with certain services or
equipment that facilitate access to NSCC services, request that NSCC
directly bill its members for the services or equipment such third
parties provide to members.\3\ The proposed rule change will permit
such third parties to aggregate individual member charges in one
invoice to NSCC and will allow NSCC in turn to include the third
parties' charges to individual members on such NSCC members' settlement
statements. The proposed rule will thereby enable NSCC members to
consolidate their payment obligations. If a member does not consent to
such charges or otherwise disputes such charges, NSCC will not fine the
member for not paying to NSCC the third party's charges. In addition,
NSCC will have no
[[Page 13913]]
liability to any third party vendors for such charges.
\3\ For example, NSCC members may want to obtain computer
hardware and/or software to access certain NSCC services. To
facilitate such access, NSCC would make arrangements with a third
party vendor to supply members with the appropriate hardware and/or
software. The third party vendor would send a detailed monthly
invoice directly to NSCC reflecting the individual member charge and
aggregate charges for the month. NSCC would then include the
appropriate charge on each member's monthly statement. NSCC would
remit to the vendor within the agreed upon time period the amount
that NSCC actually collected from members in connection with the
vendor's charges.
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NSCC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder because the rule proposal provides for the equitable
allocation of dues, fees, and other charges among NSCC's participants.
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will 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 NSCC 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. Sec. 552, will be available for inspection and copying in
the Commission's Public Reference Room, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Copies of such filing will also be available
for inspection and copying at the principal office of NSCC. All
submissions should refer to the file number SR-NSCC-96-07 and should be
submitted by April 18, 1996.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\4\
\4\ 17 CFR 200.30-3(a)(12) (1995).
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Jonathan G. Katz,
Secretary.
[FR Doc. 96-7500 Filed 3-27-96; 8:45 am]
BILLING CODE 8010-01-M