[Federal Register: January 7, 2005 (Volume 70, Number 5)]
[Notices]
[Page 1485-1487]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07ja05-105]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-50949; File No. SR-NSCC-2004-10]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Order Granting Accelerated Approval
of a Proposed Rule Change Relating to Regulatory Reporting Transmission
Agreements With Self-Regulatory Organizations
December 30, 2004
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on
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December 16, 2004, National Securities Clearing Corporation (``NSCC'')
filed with the Securities and Exchange Commission (``Commission'') and
on December 27, 2004, amended 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 and order to solicit
comments on the proposed rule change from interested persons and to
grant accelerated approval of the proposed rule change.
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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 permit NSCC to provide one or more
data transmission services to permit members and others to meet
regulatory reporting requirements imposed by self-regulatory
organizations.
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.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
Since 1995, NSCC has provided, as an accommodation to its members,
a service which permits its members to submit trade data for forwarding
to the Municipal Securities Rulemaking Board (``MSRB'') in order to
permit its members to meet MSRB regulatory requirements. To date,
NSCC's rules have been silent with respect to the service. The MSRB has
asked NSCC to expand the service and to provide qualifying non-members
with the ability to be able to submit data to NSCC for forwarding to
the MSRB to meet regulatory requirements.
With the introduction of a service for non-members of NSCC, NSCC
believes that it is important to clarify in its rules that NSCC is
providing these services on a non-exclusive basis as an accommodation
to the industry to alleviate costs. As such, NSCC is proposing to add
new Rule 63 that would cover the existing service, the requested
expansion of the service, and any other similar service requested of
NSCC by any other self-regulatory organization.\3\
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\3\ Rule 63, SRO Regulatory Reporting, reads as follows:
The Corporation may provide one or more data transmission
services to permit members and others to meet regulatory reporting
requirements imposed by self-regulatory organizations, as defined in
the Securities Exchange Act of 1934. To the extent that members or
others use any such service they shall be bound by the terms of any
agreement between the Corporation and any self-regulatory
organization with respect to each such service. Entities which are
not members shall be required to enter into such agreements as
determined by the Corporation in order to use such services.
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NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder because it sets forth the terms that will govern
arrangements whereby NSCC enters into an agreement with a self-
regulatory organization to facilitate regulatory reporting by industry
participants to meet requirements imposed by self-regulatory
organizations. As such, the proposed rule change is designed to (i)
promote the prompt and accurate clearance and settlement of securities
transactions, (ii) protect investors and the public interest, and (iii)
assure the safeguarding of securities and funds for which NSCC is in
control.
(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 yet
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
Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of a clearing agency be designed to assure the safeguarding
of securities and funds which are in its custody or control or for
which it is responsible.\4\ The proposed rule change, by clarifying the
rights and obligations of NSCC and the users of any of its regulatory
reporting data transmission services, is designed to protect NSCC and
its members from any unnecessary financial risks. Accordingly, the
proposed rule change should help to assure the safeguarding of
securities and funds which are in NSCC's custody or control or for
which it is responsible.
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\4\ 15 U.S.C. 78q-1(b)(3)(F).
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NSCC has requested that the Commission find good cause for
approving the proposed rule change prior to the thirtieth day after
publication of the notice of filing. The Commission recently approved
two proposed rule changes filed by the MSRB that permit the MSRB to
require dealers to submit transaction reports within 15 minutes of the
time of trade.\5\ This requirement will become effective in January
2005 and will be facilitated by NSCC. The Commission finds good cause
for approving the proposed rule change prior to the thirtieth day after
publication because by so approving NSCC will be able to provide data
transaction trade submission services to non-members of NSCC by the
MSRB's January 2005 implementation date.
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\5\ Securities Exchange Act Release Nos. 50294 (August 31,
2004), 69 FR 54170 (September 7, 2004) (Order approving a proposed
rule change relating to amendments to the MSRB's Rule G-12(f) on
Automated Comparison and G-14 on Transaction Reporting and relating
to the implementation of a facility for real-time transaction
reporting and price dissemination) and 50820 (December 8, 2004), 69
FR 74553 (December 14, 2004) [File No. SR-MSRB-2004-06] (Order
approving a proposed rule change to create a real-time transaction
price service and to propose an annual subscription fee).
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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. 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-2004-10 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-2004-10. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your
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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-2004-10
and should be submitted on or before January 28, 2005.
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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Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-19 Filed 1-6-05; 8:45 am]
BILLING CODE 8010-01-P