[Federal Register Volume 63, Number 213 (Wednesday, November 4, 1998)]
[Notices]
[Pages 59616-59617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29512]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-40618; File No. SR-NSCC-98-12]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Expanding the Fund/Serv Service
October 29, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 30, 1998, 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 expands NSCC's Fund/Serv service to permit
the transfer of eligible assets in all types of retirement plan
accounts.\2\
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\2\ Fund/Serv, which is part of NSCC's Mutual fund Services,
permits NSCC members to process and to settle on an automated basis
mutual fund purchase and redemption orders and to transmit
registration instructions.
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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
statement.\3\
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\3\ 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
On November 15, 1996, the Commission approved NSCC's rule filing to
allow members to transfer assets held in an individual retirement
account (``IRA'') to another mutual fund
[[Page 59617]]
through Fund/Serv.\4\ Consistent with NSCC's original intentions, this
proposed rule change expands NSCC's Fund/Serv to permit transfers of
eligible assets held in all types of retirement accounts, not just
assets held in IRAs.
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\4\ Securities Exchange Act Release No. 37959 (November 15,
1996), 61 FR 59478 [File No. SR-NSCC-96-16].
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NSCC believes that the proposed rule change is consistent with
Section 17A of the Act \5\ and the rules and regulations thereunder
because it will help foster cooperation and coordination with persons
engaged in the clearance and settlement of securities transactions and
will help remove impediments to the prompt and accurate clearance and
settlement of securities transactions.
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\5\ 15 U.S.C. 79q-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 the Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) of the Act \6\ and pursuant to Rule 19b-4(e)(4) \7\
promulgated thereunder because the proposal effects a change in an
existing service that does not adversely affect the safeguarding of
securities or funds in the custody or control of the clearing agency or
for which it is responsible and does not affect the respective rights
or obligations of the clearing agency 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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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 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. Sec. 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
submissions should refer to File No. SR-NSCC-98-12 and should be
submitted by November 25, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-29512 Filed 11-3-98; 8:45 am]
BILLING CODE 8010-01-M
