[Federal Register Volume 63, Number 217 (Tuesday, November 10, 1998)]
[Notices]
[Pages 63096-63097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30098]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40634; File No. SR-NSCC-98-13]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Modifying NSCC's Annuities Processing Service
November 4, 1998.
Pursuant to Section 19(b) (1) of the Securities Exchange Act of
1934 (``Act''),\1\ notice is hereby given that on October 8, 1998, as
amended by facsimile on October 8, 1998, the National Securities
Clearing Corporation (``NSCC'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change (File No. SR-NSCC-
98-13) 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 from interested persons on 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 will permit members to use the Annuities
Processing Service (``APS'') to submit data and to settle payments with
respect to life insurance products.
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 currently transmits data and information and settles payments
with respect to annuities through APS.\3\ Under the proposed rule
change, NSCC will transmit data and information and settle payments
relating to life insurance products as well as annuity products through
APS. According to NSCC, the processing of data and information and the
settlement of payments with respect to life insurance products would be
identical to the processing of annuity products. Since the name
``Annuities Processing Service'' or APS is commonly known and
recognized, NSCC has no current plans to change the name of the
service.
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\3\ APS is a centralized communication link connecting
participating insurance carriers with broker-dealers, banks, and the
broker-dealers' or banks' affiliated life insurance agencies where
appropriate. For a more detailed description of APS, refer to
Securities Exchange Act Release No. 39096 (September 19, 1997), 62
FR 50416 [File No. SR-NSCC-96-21] (order approving proposed rule
change).
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NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \4\ and the rules and
regulations thereunder since it will facilitate the prompt and accurate
processing of transactions.
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\4\ 15 U.S.C. 78q-1.
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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)(iii) of the Act\5\ and Rule 19b-4(e)(4) thereunder\6\
because the
[[Page 63097]]
proposal effects a change in an existing service of NSCC that (i) does
not adversely affect the safeguarding of securities or funds in the
custody or control of NSCC or for which it is responsible and (ii) does
not significantly affect the respective rights or obligations of DTC or
persons using the service. 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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\5\15 U.S.C. 78s(b)(3)(A)(iii).
\6\17 CFR 240.19b-4(e)(4).
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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, N.W., Washington, D.C. 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, N.W.,
Washington, D.C. 20549. Copies of such filing also will be available
for inspection and copying at the principal office of NSCC. All
submission should refer to File No. SR-NSCC-98-13 and should be
submitted by December 1, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\17 CFR 200.30-3(a)(12).
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Johathan G. Katz,
Secretary.
[FR Doc. 98-30098 Filed 11-9-98; 8:45 am]
BILLING CODE 8010-01-M
