[Federal Register Volume 64, Number 40 (Tuesday, March 2, 1999)]
[Notices]
[Pages 10171-10172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-5089]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-41086; File No. SR-NSCC-99-01]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Revising the Fee Schedule for the Annuity Processing
Service
February 22, 1999.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 4, 1999, 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 revises NSCC's fee schedule with regard to
its Annuity Processing Service (``APS'').\2\
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\2\ For a detailed description of APS, refer to Securities
Exchange Act Release Nos. 39096 (September 19, 1997), 62 FR 50416
[File No. SR-NSCC-96-21] (order approving the establishment of APS
and the implementation of phase one of APS) and 40799 (December 16,
1998), 63 FR 71175 [File No. SR-NSCC-98-07] (order approving the
implementation of phase two of APS).
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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 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 section (A),
(B), and (C) below, of the most significant aspects of such
statements.\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 December 28, 1998, NSCC filed with the Commission its fee
schedule for certain APS transactions, which became effective upon
filing.\4\ In that filing, NSCC erroneously stated that the fee to be
charged for the transmission of a financial activity report (``FAR'')
by insurance carriers to distributors was $0.50 per FAR transmitted or
received.\5\ The proposed rule change corrects NSCC's fee schedule to
reflect that the fee for the transmission of a FAR by insurance
carriers to distributors is $.05 per each FAR transmitted or
received.\6\
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\4\ Securities Exchange Act Release No. 40975 (January 25,
1999), 64 FR 4920 [File No. SR-NSCC-98-16].
\5\ NSCC has not charged its members any fee for such
transactions since NSCC filed its fee schedule with the Commission
on December 28, 1998. For transactions submitted on or after
February 1, 1999, NSCC will charge its member the corrected fee.
\6\ The text of the proposed revision to NSCC's fee schedule is
attached as Exhibit A to NSCC's rule filing, which is available for
inspection and copying in the Commission's Public Reference Room and
through NSCC.
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NSCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(D) of the Act\7\ and the rules and regulations
thereunder because it provides for the equitable allocation of
reasonable dues, fees, and other charges among NSCC's participants.
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\7\ 15 U.S.C. 78q-1(b)(3)(D).
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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)(ii) of Act \8\ and pursuant to Rule 19b-4(f)(2) \9\
promulgated thereunder because the proposal changes a due, fee, or
other charge imposed by NSCC. 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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\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Intersted 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 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
[[Page 10172]]
available for inspection and copying in the Commission's Public
Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Copies of
such filing will also be available for inspection and copying at the
principal office of NSCC. All submissions should refer to File No. SR-
NSCC-99-01 and should be submitted by March 23, 1999.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-5089 Filed 3-1-99; 8:45 am]
BILLING CODE 8010-01-M
