[Federal Register Volume 61, Number 116 (Friday, June 14, 1996)]
[Notices]
[Pages 30274-30275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15179]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37293; File No. SR-NSCC-96-12]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Revising Service Fees
June 10, 1996.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on April 23, 1996, 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) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the proposed rule change is to revise NSCC's fee
schedule.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In it 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. Set forth in sections (A), (B), and (C) below, are 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
The purpose of this rule change is to reduce five existing service
fees. The revisions to the fee schedule are being made as a result of
increased trading volumes and the related reduction in costs with
respect to these services. Fees relating to equity trade recording,
certain clearance services, Automated Customer Account Transfer
Service/Transfer Initiation Form submissions, Networking accounts, and
Fund/Serv transactions are being reduced.\3\ The new fees will be
effective as of May 1, 1996.
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\3\ The exact changes to NSCC's fee schedule are attached as
Exhibit A.
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NSCC believes the proposed rule change is consistent with the
requirements of Section 17A(b)(3)(D) of the Act,\4\ and the rules and
regulations thereunder because it provides for the equitable allocation
of dues, fees, and other charges among NSCC's participants.
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\4\ 15 U.S.C. 78q-1(b)(3)(D) (1988).
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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 the Act \5\ and pursuant to Rule 19b-4(e)(2) \6\
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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\5\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\6\ 17 CFR 240.19b-4(e)(2) (1995).
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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, N.W., Washington, D.C. 20549.
Copies of the submission, all subsequent
[[Page 30275]]
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 that are filed with
Commission, and all written communications relating to the propose rule
change between the Commission and any person, other than those than may
be withheld from the public in accordance with provisions of 5 U.S.C.
552, will be available for inspection and copying in the Commission's
Public Reference Room, 450 Fifth Street, N.W., Washington, D.C. 20549.
Copies of such filing will also be available for inspection and copying
at the principal office of the NSCC. All submissions should refer to
file number SR-NSCC-96-12 and should be submitted by July 5, 1996.
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) (1995).
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Margaret H. McFarland,
Deputy Secretary.
Exhibit A
Italicized text indicates additions.
[Bracketed] text indicates deletions.
Modify Addendum A to NSCC's Rules and Procedures as follows:
Fee Structure
* * * * *
I. TRADE COMPARISON AND RECORDING SERVICE FEES--represents the
fees to enter and correct original trade data.
* * * * *
C. Trade recording fees will be charged as follows on those
items originally compared by other parties, but cleared through the
Corporation: \2\
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\2\ Trade Recording Fees will be charged for all OCS and IDC
input except for sides originally submitted correctly to the
Corporation's comparison system.
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1. Each side of each stock, warrant or right item entered for
settlement, but not compared by the Corporation--[$.015] $.012 per
100 shares, with a minimum fee of [$.06] $.048 and a maximum fee of
[$1.125] $.90 being applicable.
* * * * *
II. TRADE CLEARANCE FEES--represents the fees for netting,
issuance of instructions to receive or deliver, effecting book-entry
deliveries, and related activity.
* * * * *
F. Designated valued deliveries \4\ (transaction processing)
entered into the clearance system through special representative
procedures--[$.15] $.10 per side.
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\4\ A designated valued delivery is an instruction from a
Special Representative to CNS to transfer a valued position from one
participant to a non-participant through a clearing interface.
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* * * * *
IV. OTHER SERVICE FEES.
* * * * *
M. Automated Customer Account Transfer Service.
1. Transfer Initiation Form--[$1.50] $1.00 per submission.
* * * * *
N. Fund/Serv--[$.40] $.35 per side per order.
O. NETWORKING.
* * * * *
2. Monthly Account Base Fee:
a. For accounts with Funds paying dividends monthly--[$.035]
$.025 per NETWORKING sub account.
b. For accounts with Funds paying dividends less frequently than
monthly--[$.023] $.015 per NETWORKING subaccount.
* * * * *
[FR Doc. 96-15179 Filed 6-13-96; 8:45 am]
BILLING CODE 8010-01-M
