A 5294 July 18, 2001

P&S 4864

 TO:

ALL PARTICIPANTS

ATTENTION:

MANAGING PARTNER/OFFICER

OPERATIONS PARTNER/OFFICER

 

SUBJECT:

 

CHANGES TO NSCC’S COMMISSION PAYMENT RULES

On July 12, 2001, the Securities and Exchange Commission (SEC) approved a rule change filed by National Securities Clearing Corporation ("NSCC" or the "Corporation") to modify the Rules of NSCC in connection with commission payments.

The rule change requires all Non-Clearing Members to receive commission payments via Automated Clearing House ("ACH") wire payments. In the event a Non-Clearing Member does not pay the amount it owes NSCC, the rule change codifies existing practice under which NSCC sets-off any future commission bill credits to which a Non-Clearing Members is entitled. Non-Clearing Members will not receive credit payments after July 13th unless appropriate ACH wire transfer documentation is executed.

Questions in connection with commission payment requirements should be directed to Bruce Hin, Vice President, Enterprise Service Center, at (212) 855-1692. Questions regarding the rule filing should be directed to Richard J. Paley, Associate Counsel, at (212) 855-3205.

Karen L. Saperstein
Managing Director
and Secretary