National Securities Clearing Corporation ("NSCC") has filed a rule change with the Securities and Exchange Commission ("SEC") pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934 providing that contract lists may be made available to members on an intra-day basis. It also makes clarifying changes with respect to the time when NSCC’s trade guaranty attaches, so that the earlier production of trade reports will not change the timing of the guaranty. These changes are effective immediately.

In preparation for the move towards shortened settlement cycles, NSCC is modifying its Procedures to provide that contract lists may be issued to participants on a multi-batch intra-day basis. Such reporting will provide NSCC’s participants with trade information on an earlier and more frequent basis.

The provision of intra-day reports is not, however, at this time intended to impact or change the timing of NSCC’s trade guaranty obligations, which under the current rules become effective at midnight of the day on which trades are reported out to participants as compared or recorded, usually T+1. Accordingly, NSCC has made clarifying changes to the Rules to provide that the guaranty will become effective for CNS and Balance Order trades as of the later of: (i) midnight of T + 1, or (ii) midnight of the day the trades are reported to participants as compared or recorded on contracts.

The full text of the rule change may be obtained by contacting the NSCC Legal Department at (212) 855-3207. Written comments on the proposed rule filing may be addressed to Lisa T. Siebold, Assistant Secretary, National Securities Clearing Corporation, 55 Water Street, New York, New York 10041, and your comments will be forwarded to the SEC. You may also address your written comments to the Secretary of the Commission, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, D.C. 20549. We request that you provide NSCC with a copy of your comments.

Members will be notified as intra-day reporting is introduced for each trade recording system.

Questions regarding trade reporting should be directed to Gerhard Krobisch, at (212) 855-5696. Questions regarding the rule filing should be directed to Merrie Faye Witkin, Vice President and Senior Counsel, at (212) 855-3208.

Karen L. Saperstein
Managing Director and Secretary