[Federal Register: February 1, 1999 (Volume 64, Number 20)] [Notices] [Page 4920-4921] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr01fe99-117] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-40975; File No. SR-NSCC-98-16] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees January 25, 1999. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ notice is hereby given that on December 28, 1998, 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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change modifies NSCC's fee schedule with regard to its Annuities Processing Service (``APS''). 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. 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 summaries prepared by NSCC. --------------------------------------------------------------------------- (A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change On December 16, 1998, the Commission approved a proposed rule change that allowed NSCC to implement phase two of APS.\3\ Phase two enables multiple insurance product distribution channels such as insurance agencies, broker-dealers, and other trading partners (collectively, ``distributors'') to transmit to insurance carriers information with respect to an initial annuity application and premium transfers on the sale of an annuity and subsequent annuity activity, as well as the related money settlement between the distributors and insurance carriers. In addition, insurance carriers can transmit to distributors a financial activity report (``FAR'') that provides information relating to events and transactions occurring with respect to existing annuity contracts that have been issued by the insurance carriers. --------------------------------------------------------------------------- \3\ Securities Exchange Act Release No. 40799 (December 16, 1998), 63 FR 71175 [File No. SR-NSCC-98-07]. See also Securities Exchange Act Release No. 39096 (September 19, 1997), 62 FR 50416 [File No. SR-NSCC-96-21] (order approving the establishment of APS and the implementation of phase one of APS). For a more detailed description of APS, refer to the foregoing releases. --------------------------------------------------------------------------- Currently, no fees are being charged to users of these new APS services. With respect to use of these services on or after January 1, 1999, NSCC will charge its members as follows. NSCC will charge members that submit or receive information relating to the initial application or premium transfer a fee of $7.50 for each submission or receipt. NSCC will charge members that submit or receive information on subsequent annuity activity a fee of $0.50 for each such transaction. NSCC will charge members that submit or receive a FAR a fee of $0.50 for each FAR transmitted or received.\4\ --------------------------------------------------------------------------- \4\ The text of the proposed amendments to NSCC's fee schedule is attached as an exhibit to NSCC's filing, which is available for inspection and copying in the Commission's Public Reference Room and through NSCC. --------------------------------------------------------------------------- NSCC believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder because it 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 have been solicited or received. NSCC will notify the Commission of any written comments received by NSCC. [[Page 4921]] 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 \5\ and pursuant to Rule 19b-4 (e)(2) \6\ thereunder because the proposal establishes or changes a due, fee, or other charge imposed by NSCC. At any time within sixty days of the filing of the proposed 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(A)(ii). \6\ 17 CFR 240.19b-4(e)(2). --------------------------------------------------------------------------- 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 Section, 450 Fifth Street, NW, Washington, DC 20549. Copies of such filing also will be available for inspection and copying at the principal office of NSCC. All submissions should refer to File No. SR-NSCC-98-16 and should be submitted by February 22, 1999. For the Commission by the Division of Market Regulation, pursuant to delegated authority.\7\ --------------------------------------------------------------------------- \7\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Margaret H. McFarland, Deputy Secretary. [FR Doc. 99-2299 Filed 1-29-99; 8:45 am] BILLING CODE 8010-01-M