[Federal Register Volume 63, Number 203 (Wednesday, October 21, 1998)]
[Notices]
[Pages 56280-56281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28194]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40549; File No. SR-NSCC-98-11]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of a Proposed Rule Change to Modify
NSCC's Rules Regarding Its Mutual Fund Services Transfer Service
October 14, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ notice is hereby given that on July 30, 1998, the
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change (File No. SR-NSCC-98-11) 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.
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\1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change will modify NSCC's procedures regarding
its Mutual Fund Services transfer service.
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\
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\2\ The Commission has modified the text of the summaries
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
The proposed rule change will modify NSCC's rules regarding its
Mutual Fund Services transfer service. The Mutual Fund Services
transfer service enables fund members and mutual fund processors to
transfer between each other the value of Fund/Serv eligible mutual fund
shares or UIT units on an automated basis.
The proposed rule change will enable NSCC to implement a request by
a users
[[Page 56281]]
advisory group to modify Section 21(c) of NSCC's Rule 52A so that the
time frame between a delivering fund member's acknowledgment and
confirmation is shortened thereby permitting ore expeditious transfers.
Currently, a delivering fund member that has acknowledged a transfer
request must confirm the value of the Fund/SERV eligible mutual fund
shares or UIT units to be transferred by submitting a confirmation to
NSCC no earlier than two days and no later than sixty business days
after the submission of an acknowledgment. The proposed rule change
will permit the delivering fund member to submit a confirmation no
earlier than one day and, as is the case today, no later than sixty
business days after the submission of an acknowledgment. The users
advisory group has informed NSCC that a one day time frame is
sufficient for the submission of a confirmation. NSCC will notify
members by Important Notice of the specific implementation date, which
is expected to be in December 1998.
NSCC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder since
it will facilitate the prompt and accurate clearance and settlement of
securities transactions and, in general, will protect investors and the
public interest.
(B) Self-Regulatory Organization's Statement of Burden on Competition
NSCC does not believe that the proposed rule change will have an
impact on 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 Acting
Within thirty-five days of the date of publication of this notice
in the Federal Register 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 findings or
(ii) as to which the 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 including whether the proposed rule
change is consistent with the Act. Persons making written submissions
should file six copies thereof with the Secretary, Securities and
Exchange Commission, 450 Fifth Street, NW., Washington, DC 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 Room, 450 Fifth Street, NW., Washington,
DC 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-98-11 and should be submitted by
November 12, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority. \3\
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\3\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-28194 Filed 10-20-98; 8:45 am]
BILLING CODE 8010-01-M