[Federal Register Volume 63, Number 26 (Monday, February 9, 1998)]
[Notices]
[Pages 6588-6589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3118]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39611; File No. SR-NSCC-97-15]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Order Granting Accelerated Approval
of Proposed Rule Change Relating to Odd-lot Activity Reports
February 2, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on
[[Page 6589]]
December 22, 1997, the National Securities Clearing Corporation
(``NSCC'') 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 NSCC. The
Commission is publishing this notice and order to solicit comments from
interested persons on the proposed rule change and to grant accelerated
approval of the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of
Substance of the Proposed Rule Change
The proposed rule change will amend NSCC's procedures to eliminate
the distribution of odd-lot activity reports.
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\
---------------------------------------------------------------------------
\2\ The Commission has modified the text of the summaries
prepared by NSCC.
---------------------------------------------------------------------------
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
NSCC currently produces odd-lot activity reports for distribution
by the New York Stock Exchange (``NYSE''). The reports identify odd-lot
trades executed on the NYSE each trading day and are provided to joint
members of NSCC and NYSE in both print and machine readable output
formats on the night of trade date.
The purpose of the proposed rule change is to amend NSCC's rules to
eliminate the distribution of the reports. NYSE requested the
elimination because the odd-lot activity information is available in
other reports currently distributed to members. NSCC will coordinate
with the NYSE the process of discontinuing distribution.
NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \3\ and the rules and
regulations thereunder because it fosters cooperation and coordination
with other entities engaged in the clearance and settlement of
securities transactions.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
No comments on the proposed rule change were solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing
for Commission Action
Section 17A(b)(3)(F) of the Act requires that the rules of a
clearing agency be designed to foster cooperation and coordination with
persons engaged in the clearance and settlement of securities
transactions.\4\ The Commission believes that the proposal is
consistent with NSCC's obligations because it coordinates the
dissemination of information by NSCC and NYSE.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-(b)(3)(F).
---------------------------------------------------------------------------
NSCC 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 in the Federal Register in order to allow
NSCC to eliminate production of reports on the same day that the NYSE
is scheduled to cease distribution of reports. Because accelerated
approval will allow NSCC and NYSE to implement administrative
efficiencies in an expedient and coordinated fashion, the Commission
finds good cause for granting accelerated approval.
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
submissions should refer to File No. SR-NSCC-97-15 and should be
submitted by March 2, 1998.
Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-NSCC-97-15) be and hereby is
approved on an accelerated basis.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\5\
---------------------------------------------------------------------------
\5\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-3118 Filed 2-6-98; 8:45 am]
BILLING CODE 8010-01-M
