A 5510 
P&S 5080
November 8, 2002 

TO: ALL PARTICIPANTS

ATTENTION: MANAGING PARTNER/OFFICER, OPERATIONS PARTNER/OFFICER, COMPLIANCE OFFICER, MONEY SETTLEMENT DEPARTMENT

SUBJECT: RULE FILING

National Securities Clearing Corporation ("NSCC" or "the Corporation") 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. The purpose of the proposed rule filing is to modify Versions 1 and 2 of Addendum B of NSCC’s Rules and Procedures (Standards of Financial Responsibility and Operational Capability) to eliminate all references to Class I and Class II Security Surveillance.

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) 855-3204. 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 notice may be directed to the undersigned at (212) 855-3203.

Karen L. Saperstein
Managing Director