[Federal Register Volume 60, Number 142 (Tuesday, July 25, 1995)]
[Notices]
[Pages 38071-38072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18217]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-35983; File No. SR-NSCC-95-07]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Reducing Networking Account Fees
July 18, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 21, 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 person.
\1\ 15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organizations Statement of the Terms of
Substance of the Proposed Rule Change
NSCC is filing the proposed rule change to reduce certain of the
Networking service \2\ account fees charged to NSCC participants.
\2\ Networking is NSCC's centralized and standardized data
communications system that enables members to transmit mutual fund
customer account data and to settle mutual fund payments between
themselves. For a complete description of the 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).
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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 sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\3\
\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
The purpose of the proposed rule change is to reduce the Networking
service monthly account base fees charged to NSCC participants in order
that such fees will reflect more accurately the current costs of
providing the service. For accounts with funds paying dividends
monthly, the monthly account base fee will be reduced from $.045 per
side to $.035 per networking subaccount. Similarly, for accounts with
funds paying dividends less frequently than monthly, the monthly
account base fee will be reduced from $.03 per side to $.023 per
networking subaccount. This reduced fee structure will take effect on
June 1, 1995.
Section 17A(b)(3)(D) of the Act \4\ requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges among its participants. NSCC believes
that the proposed rule change is consistent with the requirements of
Section 17A(b)(3)(D) of the Act because the new fee schedule allocates
fees more equitably among NSCC participants.
\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
NSCC neither solicited nor received written comments on the
proposed rule change. NSCC will notify the Commission of any written
comments it receives.
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 Rule 19b-4(e)(2)\6\ thereunder
because the rule change establishes or changes a due, fee, or other
charge. 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 purpose of the Act.
\5\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
\6\ 17 CFR 240.19b-4(e)(2) (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, 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. Sec. 552, will be available for inspection and copying in
the Commission's Public Reference Section, 450 Fifth Street, N.W.,
Washington, DC 20549. Copies of such filing also will be available for
inspection and copying at the principal
[[Page 38072]]
office of NSCC. All submissions should refer to File No. SR-NSCC-95-07
and should be submitted by August 15, 1995.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
\7\ 17 CFR 200.30-3(a)(12) (1994).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-18217 Filed 7-24-95; 8:45 am]
BILLING CODE 8010-01-M
