[Federal Register Volume 59, Number 63 (Friday, April 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-7824]
[[Page Unknown]]
[Federal Register: April 1, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-33819; File No. SR-NSCC-94-04]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Filing and Immediate Effectiveness of a Proposed Rule
Change Establishing a Fee for Printed Output Reports
March 25, 1994.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on March 14, 1994, 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 primarily prepared by NSCC. The Commission is publishing this
notice to solicit comments on the proposed rule changes from interested
persons.
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\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
The proposed rule change establishes a fee for printed output
reports as follows:
Italics indicates additional text
Addendum A
* * * * *
V. Pass-Through and Other Fees
* * * * *
B. Special Service Fees
* * * * *
5. Output Fees
* * * * *
f. Printed Output Reports
For Members with less than 20,000 no charge.
lines per month.
For Members with 20,000 or more $4.00 per each 1000 lines.\1\
lines per month.
\1\From July 1, 1994 through December 31, 1994, Participants will only
be billed $3.00 for each 1000 lines.
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.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
For the past several years NSCC has been encouraging participants
to reduce or eliminate the need to receive printed output reports and
instead to accept data by transmission in machine readable or print
image form. Most significantly, NSCC has sought to reduce or eliminate
printed output for the following reasons: (1) Printed output is the
least efficient method to communicate information in terms of both cost
and time for both NSCC and its participants, (2) it is very expensive
for NSCC to maintain the excess print capacity to handle sudden surges
in trading volume, and (3) much of NSCC's printed output duplicates
data already being transmitted in data and print image format. As a
result, many firms, large and small, have either totally or largely
eliminated printed output.
In order to more equitably allocate the costs associated with the
remaining printing and distribution of printed output, NSCC's Board of
Directors has determined to begin charging participants for the
service. The proposed rule change establishes a fee for all printed
reports. While the fee will be $4.00 per each one thousand lines,
during the first six months NSCC will only collect $3.00 per one
thousand lines. Participants having less than twenty thousand lines of
print in a month will not be charged. In emergencies, printed output
for all participants will be available at no charge.
NSCC believes that the proposal is consistent with section
17A(b)(3)(D)\2\ of the Act because the proposed rule change will
provide for a more equitable allocation of fees among participants.
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\2\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 changes 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)(ii)\3\ of the Act and pursuant to rule 19b-4(e)(2)\4\ in
that it establishes a fee. At any time within sixty days of the filing
of such proposed 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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\3\15 U.S.C. 78s(b)(3)(A)(ii).
\4\17 CFR 240.19b-4(e)(2) (1993).
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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
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 will also be available for
inspection and copying at the principal office of NSCC. All submissions
should refer to File No. SR-NSCC-94-04 and should be submitted by April
22, 1994.
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) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-7824 Filed 3-31-94; 8:45 am]
BILLING CODE 8010-01-M
