[Federal Register: May 13, 2005 (Volume 70, Number 92)]
[Notices]
[Page 25636-25637]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13my05-101]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51674; File No. SR-NSCC-2005-03]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of a Proposed Rule Change Relating to the
Collecting of Fees for Services Provided by Other Entities
May 9, 2005.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on April 26, 2005, 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 would amend NSCC's rules to allow NSCC to
collect fees for services provided by unregulated subsidiaries of The
Depository Trust and Clearing Corporation (``DTCC'') and by other
entities.
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 parts of these statements.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
NSCC is a subsidiary of DTCC. Members of NSCC and their affiliates
may from time to time utilize the services of DTCC subsidiaries that
are not registered as clearing agencies with the Commission. Such
subsidiaries include Global Asset Solutions LLC and DTCC Deriv/Serv
LLC. In addition, members of NSCC and their affiliates may utilize the
services of other third parties. NSCC has determined that it would be
more efficient and less costly if the fees that members agree to pay
for such services were collected by NSCC rather than through
independent billing mechanisms that would otherwise have to be
established by each subsidiary of DTCC and third party that is not a
registered clearing agency.
NSCC's rules currently allow for fee collection arrangements with
respect to collection of fees from members. The proposed rule change
would further clarify this practice and facilitate collection of fees
with respect to affiliates of members. NSCC will enter into appropriate
agreements with such subsidiaries and others regarding the collection
of fees.
NSCC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
because NSCC will implement the service in a manner whereby NSCC will
be able to assure the safeguarding of securities and funds which are in
its custody or control or for which it is responsible.
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change would have any
impact or impose any burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
Written comments relating to the proposed rule change have not been
solicited or received.
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 the proposed rule change or
(b) Institute proceedings to determine whether the proposed rule
change should be disapproved.
[[Page 25637]]
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. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml.
) or Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NSCC-2005-03 on the subject line.
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number SR-NSCC-2005-03. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml
). 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 and on
NSCC's Web site at http://www.nscc.com. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NSCC-2005-03 and should be submitted on
or before June 3, 2005.
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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-2375 Filed 5-12-05; 8:45 am]
BILLING CODE 8010-01-P