[Federal Register Volume 63, Number 76 (Tuesday, April 21, 1998)]
[Notices]
[Pages 19780-19781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10419]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-39863; File No. SR-NSCC-98-1]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Fees and Charges
April 14, 1998.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on February 12, 1998, 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 from interested persons on the proposed rule
change.
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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 reduces certain fees, lowers certain caps
on fees, and implements one new cap on certain 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, 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\
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\2\ 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
NSCC's fees are based in part on the expected volume of
transactions submitted to NSCC for processing. Because the volume of
transactions submitted to NSCC for processing has increased over the
past few years, NSCC has determined that it is appropriate to reduce
certain fees, to lower certain caps on certain fees, and to implement
one new cap. The proposed changes are as follows:
(1) Trade Comparison Fee
Currently, the trade comparison fee for each side of each stock,
warrant, or right trade submitted is $.018 per 100 shares with a
minimum fee of $.072 and a maximum fee of $1.35. This rule change
reduces this maximum fee from $1.35 to $1.08.
(2) Trade Recording Fee
At present, the trade recording fee for each side of each stock,
warrant, or right item originally compared by other parties but cleared
through NSCC is $.012 per 100 shares with a minimum fee of $.048 and a
maximum fee of $.90. This rule change reduces the trade recording fee
of such items to $.008 per 100 shares with a minimum fee of $.032 and a
maximum fee of $.48.
(3) Trade Clearance Fees
Current trade clearance fees are as follows: $.50 per issue
received from NSCC's continuous net settlement (``CNS'') system to
satisfy a long valued
[[Page 19781]]
position, $.50 per delivery on CNS in the night processing cycle to
cover a short valued position, and $1.25 per delivery to CNS in the day
processing cycle to cover a short valued position. Each of these three
fees includes a $.075 charge associated with a CNS delivery order
movement. Under this rule change, the charge for CNS delivery order
movements will be reflected as a separate charge of $.06 instead of
$.075. To reflect both the removal of the delivery order movement
component of these fees and the additional reductions, the trade
clearance fees for these items are being reduced as follows: $.40 per
issue received from CNS to satisfy a long valued position, $.40 per
delivery to CNS in the night processing cycle to cover a short valued
position, and $1.00 per delivery to CNS in the day processing cycle to
cover a short valued position.
(4) Membership Fees
NSCC is making two changes with respect to its membership fees.
First, it is reducing its networking membership fee from $250 to $200
per month. Second, NSCC currently has a cap on the aggregate dollar
amount of membership fees which it charges for the following services:
trade processing systems, envelope settlement system, dividend
settlement service, and Fund/SERV.\3\ NSCC is removing Fund/SERV from
this cap and is implementing a new cap of $200 on the aggregate dollar
amount of membership fees that may be charged to a participant for use
of Fund/SERV, networking, and mutual fund commission settlement.\4\
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\3\ For members with ten or less assigned numbers, this cap is
$200 per month, and for members with more than ten assigned numbers,
the cap is $150 for the first ten numbers and $75 for each
additional number.
\4\ The individual fees are $50 for Fund/SERV membership, $50
for mutual fund commission settlement membership, and $200 for
networking membership taking into account the reduction made by this
filing.
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(5) Other Mutual Fund Related Fees
Other mutual fund related fees are being reduced. The Fund/SERV
transaction fee is being reduced from $.35 to $.30 per side per order
or transfer request. The networking account base fees for accounts
relating to funds paying monthly dividends are being reduced from $.025
to $.020 per networking subaccount and from $.015 to $.010 for accounts
relating to funds paying dividends less frequently than monthly. The
minimum charge for mutual fund commission record submissions is being
reduced from $100 to $50.
NSCC intends to give members the benefit of these fee changes
effective as of January 1, 1998. The necessary adjustments to
accommodate these reductions will be reflected in bills transmitted to
members in March 1998.
NSCC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act, and the rules and regulations
thereunder because it provides for the equitable allocation of dues,
fees, and other charges among NSCC's members.
(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) \5\ of the Act and pursuant to Rule 19b-4(e)(2) \6\
promulgated thereunder because the proposal establishes or 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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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 17 CFR 240.19b-(e)(2).
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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-98-1 and should be
submitted by May 12, 1998.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(A)(12)
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-10419 Filed 4-20-98; 8:45 am]
BILLING CODE 8010-01-M
