[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Notices]
[Pages 42932-42933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20396]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-36094; File No. SR-NSCC-10]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change Concerning the Processing of Index Receipts
August 11, 1995.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on July 27, 1995, the
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change (File No. SR-NSCC-95-10) 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
The purpose of the proposed rule change is to modify NSCC's
procedures for processing index receipts to reflect that the only
service NSCC will provide
[[Page 42933]]
with respect to foreign index receipts is distribution of the
composition file. In addition, the proposed rule change establishes a
fee of $125.00 for the distribution of the composition file for such
nondomestic index receipts.
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\
\2\ The Commission has modified parts 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 currently provides services for the processing of domestic
index products. These services include the processing of creation and
redemption instructions and the settlement of the underlying securities
as well as cash amounts related to the creations and redemptions.
Additionally, NSCC provides members with a composition file that is
used by NSCC in settling the creation and redemption instructions.\3\
The New York Stock Exchange (``NYSE'') plans to begin trading
depository index receipts based on the Financial Times Actuaries World
Indices.\4\ The new NYSE products will include receipts based on a
domestic index and eight foreign indexes. While the index receipts will
trade and settle like other domestic equity products, their underlying
foreign components are not eligible to be cleared and settled
domestically. Thus, the purpose of this filing is to modify NSCC's
rules to indicate that with respect to foreign index products the only
service which NSCC will provide will be the distribution of the
composition file.
\3\ NSCC provides to its members the composition file for
creations and redemptions of index receipts occurring on the next
business day to advise its members of the index receipts' component
shares and associated quantities.
\4\ See Securities Exchange Act Release No. 36032 (July 28,
1995), 60 FR 40403.
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NSCC currently charges members a fee of $125.00 per month per file
for the distribution of the domestic composition file. The proposed
rule change will establish a fee for the distribution of the
composition file for the nondomestic indexes. Consistent with the
domestic composition file fee, the fee for distribution of the
composition file for the nondomestic indexes also will be $125.00 per
month per file.
NSCC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act and the rules and regulations
thereunder because: (i) the rule proposal will facilitate the prompt
and accurate clearance and settlement of securities transactions and
(ii) the proposed rule change establishes 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 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 relating to the proposed rule change 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) and (iii) \5\ of the Act and pursuant to Rule 19b-4(e)
(2) and (4) \6\ promulgated thereunder because the proposal: (i)
establishes or changes a due, fee, or other charge imposed by NSCC and
(ii) effects a change in an existing service that does not adversely
affect the safeguarding of securities or funds in NSCC's custody or
control or for which it is responsible 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
its 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.
\5\ 15 U.S.C. 78s(b)(3)(A) (ii) and (iii) (1988).
\6\ 17 CFR 240.19b-4(e) (2) and (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 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 will also be available
for inspection and copying at the principal office of NSCC. All
submissions should refer to the file number SR-NSCC-95-10 and should be
submitted by September 7, 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. 95-20396 Filed 8-16-95; 8:45 am]
BILLING CODE 8010-01-M
