[Federal Register Volume 64, Number 65 (Tuesday, April 6, 1999)]
[Notices]
[Page 16772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8366]
[[Page 16772]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41223; File No. SR-NSCC-99-03]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Relating to Fees and Charges
March 29, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 24, 1999, 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.
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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 revises NSCC's fee schedule for trade
comparison, trade recording, flip trades, and Fund/SERV 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.\2\
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\2\ 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.
NSCC's trade comparison fee for each side of each stock, warrant,
or right trade submitted is $.018 per 100 shares with a minimum fee of
$.072 and a maximum fee of $1.08. The proposed rule change reduces the
fee for each side submitted to $.010 with the minimum fee reduced to
$.040 and the maximum fee reduced $.60.
NSCC's trade recording fee for each side of each stock, warrant, or
right item that is entered for settlement but not compared by NSCC is
$.008 per 100 shares with a minimum fee of $.032 and a maximum fee of
$.48. The proposed rule change reduces the fee for such items to $.006
per 100 shares with the minimum fee reduced to $.024 and the maximum
fee reduced to $.36.
NSCC's per side fee for flip trades is $.050. The proposed rule
change reduces the fee to $.025 per side.
The proposed rule change reduces NSCC's Fund/SERV transaction fee
from $.30 to $.25 per side per order or transfer request.
NSCC intends to give its members the benefit of these fee changes
effective as of January 1, 1999. The necessary adjustments to
accommodate these reductions will be reflect in billing statements
transmitted in February 1999.
NSCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(D) of the Act \3\ and the rules and regulations
thereunder because it provides for the equitable allocation of
reasonable dues, fees, and other charges among NSCC's participants.
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\3\ 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 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 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act \4\ and pursuant to Rule 19b-4(f)(2) \5\
promulgated thereunder because the proposal changes a due, fee, or
other charge imposed by NSCC. At any time within sixty days of the
filing of such rule change, the Commission may summarily abrogate 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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\4\ 15 U.S.C. 78s(b)(3)(A)(ii).
\5\ 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. 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 File No. SR-NSCC-99-03 and should
be submitted by April 27, 1999.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-8366 Filed 4-5-99; 8:45 am]
BILLING CODE 8010-01-M