[Federal Register Volume 60, Number 43 (Monday, March 6, 1995)]
[Notices]
[Page 12260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5372]
[[Page 12260]]
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35423; File No. SR-NSCC-95-01]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Expanding the Types of Payments Processed Through the
Mutual Fund Networking Service
February 28, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934\1\ (``Act''), notice is hereby given that on January 10, 1995, 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.
\1\15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
NSCC proposes to modify its Mutual Fund Networking Service rules to
permit settlement of additional payments pertaining to mutual fund
activity.
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 statement 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.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
NSCC's Mutual Fund Networking Service currently enables Networking
participants to transmit mutual fund customer account data among NSCC's
broker-dealer and mutual fund processing members\2\ and to settle
mutual fund dividend payments.\3\ The proposed rule change will modify
the Mutual Fund Networking Service to permit settlement of other
payments pertaining to mutual fund activity in addition to dividend
payments.\4\ NSCC currently proposes to allow Networking participants
to settle payments which result from standing instructions (e.g.,
monthly) given by a customer to a mutual fund to liquidate a certain
amount or value of shares or specific instructions given by a customer
directly to a mutual fund to liquidate shares.\5\ The proposed rule
modifies the existing Mutual Fund Networking Service to better meet the
needs of NSCC's Networking participants by expanding the
standardization of money payments on an automated basis.
\2\For a detailed description of NSCC's Networking Service,
refer to Securities Exchange Act Release No. 26376 (December 28,
1988), 53 FR 52544 [File No. SR-NSCC-88-08] (order granting approval
to NSCC's Networking Service).
\3\Securities Exchange Act Release No. 28608 (November 19,
1990), 55 FR 48193 [File No. NSCC-89-13] (order granting permanent
approval to NSCC's automated settlement of mutual fund dividends).
\4\Payments made through the Networking Service are not
guaranteed by NSCC; therefore, NSCC reserves the right to reverse
any credit in the event NSCC does not receive a corresponding
payment from a Fund member.
\5\NSCC will be required to file a proposed rule change pursuant
to Section 19(b) of the Act before allowing other types of payments
to be processed through the Networking service.
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NSCC believes the proposed rule change is consistent with the
requirements of the Act, and specifically Section 17A of the Act, and
the rules and regulations thereunder, because the proposal will
facilitate the prompt and accurate clearance and settlement of
securities transactions.
(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will have an
impact on 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)\6\ of the Act and pursuant to Rule 19b-4(e)(4)\7\
promulgated thereunder, in that the proposal effects a change in an
existing service that does not adversely affect the safeguarding of
securities or funds in NSCC's custody or control and does not
significantly affect the respective rights or obligations of NSCC or
persons using NSCC's services. 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 purpose of the Act.
\6\15 U.S.C. 78s(b)(3)(A)(iii) (1988).
\7\17 CFR 240.19b-4(e)(4) (1994).
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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 statement
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 will also be available for
inspection and copying at the principal office of NSCC. All submissions
should refer to File No. SR-NSCC-95-01 and should be submitted by March
27, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\8\
\8\17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-5372 Filed 3-3-95; 8:45 am]
BILLING CODE 8010-01-M
