[Federal Register Volume 62, Number 38 (Wednesday, February 26, 1997)]
[Notices]
[Pages 8811-8812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4749]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-38318; File No. SR-SCCP-96-14]
Self-Regulatory Organizations; Stock Clearing Corporation of
Philadelphia; Notice of Filing and Order Granting Accelerated Approval
of a Proposed Rule Change Implementing a Collection Service for
Regulatory Fees
February 20, 1997.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on January 6, 1997, the Stock
Clearing Corporation of Philadelphia (``SCCP'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which items have been
prepared primarily by SCCP. 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 will permit SCCP to act as a collection
agent for the National Association of Securities Dealers (``NASD'') for
Section 31 fees.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, SCCP included statements
concerning the purpose of and statutory basis for the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. SCCP 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 Statements of the Purpose of, and
Statutory Basis for the Proposed Rule Change
SCCP proposes to serve as a collection agent for the NASD for
Section 31 fees as required in the National Securities Markets
Improvement Act of 1996.\3\ Section 31 fees will apply to all domestic
and foreign securities listed on the NASDAQ Stock Market with the
exception of convertible debt. Upon its implementation, the fee will be
1/300th of one percent based upon the aggregate dollar amount of sales
transacted by or through any member other than those
[[Page 8812]]
sales consummated on a securities exchange subject to last-sale
reporting.
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\3\ Pub. L. 104-920, 110 Stat. 3416 (1996).
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On a monthly basis, the NASD will calculate the Section 31 fees for
each NASD member clearing firm based upon the transaction data
submitted to the NASD's Automated Confirmation Transaction Service
(``ACT''). The NASD will generate customer invoices and an invoice
summary register that it will deliver to SCCP immediately following the
end of each month. Upon receipt, SCCP will distribute the NASD
generated invoices to NASD clearing firms that have a primary clearing
relationship with SCCP. SCCP will collect each member's Section 31 fee
as a part of SCCP's normal settlement process. The day following
collection of the Section 31 fees, SCCP will remit a check to the NASD
for the total amount collected minus a $100 service charge.
SCCP states that proposed collection procedures comply with Section
17A of the Act because it will foster cooperation and coordination with
persons engaged in the clearance and settlement of securities
transactions.
(B) Self-Regulatory Organization's Statement on Burden on Competition
SCCP does not perceive any burdens on competition as a result of
the proposed rule change.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments were neither solicited nor received with respect
to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Section 17A(b)(3)(A) of the Act \4\ requires that a clearing agency
is organized and has the capacity to comply with the provisions of this
title and the rule and regulations thereunder. The Commission believes
that SCCP's proposed rule change is consistent with this section
because the proposed rule change should facilitate the NASD in
fulfilling its obligation to collect Section 31 fees under the National
Securities Markets Improvement Act of 1996.
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\4\ 15 U.S.C. 78q-1(b)(3)(A).
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SCCP has requested that the Commission find good cause for
approving the proposed rule change prior to the thirtieth day after the
date of publication of notice of filing. The Commission finds good
cause for approving the proposed rule change prior to the thirtieth day
after the date of publication of notice of filing because the proposal
will permit SCCP to immediately begin collecting these Section 31 fees
for the NASD.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing. 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 SCCP. All submissions should refer to File
No. SR-SCCP-96-14 and should be submitted by March 19, 1997.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-SCCP-96-14) be, and hereby
is, approved.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-4749 Filed 2-25-97; 8:45 am]
BILLING CODE 8010-01-M
