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, concerning an enhancement to the Corporation’s Fund/SERV service. This change is effective immediately.

The rule change permits Data Services Only Members to access Fund/SERV to process non-NSCC settling fund purchase and redemption transactions and related instructions. The proposed rule also extends this processing-only functionality to those Settling Members and Fund Members who wish to utilize it.

Accordingly, NSCC’s Rule 52 (Mutual Fund Services) Section A (Fund/SERV) is being amended to add Data Services Only Members as eligible to utilize the service for the limited purpose of processing (but not settling through NSCC) transactions and related instructions, and to enable Settling Members to process transactions and related instructions through Fund/SERV that will settle outside of NSCC. As Fund Members have the right to designate parameters within which their orders will be processed, this Fund/SERV processing only functionality will be available to the extent those parameters are selected by Fund Members. The settlement of all such non-NSCC settling fund transactions will be the responsibility of the parties thereto.

The proposed fee schedule for such Fund/SERV processing only transactions will be the subject of a separate rule filing. Until such time, this functionality 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 this enhancement to Fund/SERV should be directed to the Mutual Fund Hotline at (212) 855-8877. 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