[Federal Register Volume 59, Number 164 (Thursday, August 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20894]
[[Page Unknown]]
[Federal Register: August 25, 1994]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34550; File No. SR-NSCC-94-13]
Self Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change Modifying the
Automated Customer Account Transfer Service
August 18, 1994.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'')\1\, notice is hereby given that on July 20, 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 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 text of the proposed rule change consists of modifications to
NSCC's rules and procedures relating to the Automated Customer Account
Transfer Service (``ACATS'').
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
The proposed rule change will modify NSCC's ACATS to accelerate the
time in which accounts are transferred. The proposed rule change is
made in conjunction with the New York Stock Exchange's (``NYSE'')
recently filed proposed rule change to amend NYSE Rule 412 relating to
transfers of customer accounts.\2\
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\2\For a complete description of the NYSE proposed rule change,
refer to Securities Exchange Act Release No. 34246 (June 22, 1994),
59 FR 33559 [File No. SR-NYSE-94-21] (notice of filing of a proposed
rule change relating to NYSE's Customer Account Contract Rule and
its related interpretations).
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Under NSCC's proposed rule change, NSCC Rule 50, Section 9, will be
amended to allow a receiving member one business day after receipt from
NSCC of the customer account asset data report to determine whether to
accept, to reject, or to request adjustments to the account. Currently,
receiving members have two business days to respond after receiving the
customer account asset data report. Where Mutual Fund Services eligible
book share mutual fund assets are to be transferred, a receiving member
again will have one business day instead of two business days after
receipt of the customer account asset data report to submit detailed
transfer instructions to NSCC. Each business day that the delivering
member causes an adjustment to be made to an account will give the
receiving member one additional business day to accept, reject, or
request adjustments or in the case of mutual funds to submit transfer
instructions. Currently, receiving members have two business days after
an adjustment. Additionally, the proposed rule change will delete
language that treats transfers of accounts containing option positions
differently from transfers of accounts without option positions.
NSCC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act because the changes will
facilitate the prompt and accurate clearance and settlement of
securities transactions.
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
Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period (i) as the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
(A) By order approve such proposed rule change or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
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 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 File No. SR-NSCC-94-13 and should be
submitted by September 15, 1994.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\3\
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\3\17 CFR 200.30-3(a)(12) (1993).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-20894 Filed 8-24-94; 8:45 am]
BILLING CODE 8010-01-M
