ATTENTION: MANAGING PARTNER/OFFICER, OPERATIONS PARTNER/OFFICER

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, to add a new membership category to allow entities to use certain limited services of NSCC that do not involve clearance and settlement. This change is effective immediately. 

The rule change creates a new category of member that is eligible to access certain limited data and information services of NSCC.  Such entities will be known as “Data Services Only Members,” and they will only be permitted access to those services specifically enumerated under  NSCC’s Rules. They will not be permitted to settle any transactions through the Corporation’s facilities. 

Initially, the only NSCC service that Data Services Only Members will be permitted access to will be the Networking Service (through its Interactive Inquiry functionality) provided as part of NSCC’s Mutual Fund Services. NSCC’s Rule 52 (Mutual Fund Services) is being amended to permit Data Services Only Members to utilize Networking only to request and transmit mutual fund, Investment Fund and UIT customer account data.  (Such entities will not, however, be permitted to settle dividend or other Networking payments through the Corporation.)

A proposed fee schedule for Data Services Only Members’ use of Networking is being developed, and will be the subject of a separate rule filing. Until such time as a fee schedule has been agreed upon, this limited service will be provided without charge.

The full text of the rule change may be obtained by visiting our web site at www.nscc.com, or 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.

Questions regarding Data Services Only membership should be directed to Barbara Simon, Director of Mutual Fund Marketing at (212) 855-5658. Questions regarding the rule filing should be directed to Merrie Faye Witkin, Senior Counsel, at (212) 855-3208.

Karen L. Saperstein
Managing Director