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A# |
5694 |
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P&S #: |
5264 |
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DATE: |
October 16, 2003 |
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TO: |
ALL PARTICIPANTS |
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ATTENTION: |
MANAGING PARTNER/OFFICER, CHIEF OPERATIONS OFFICER, OPERATIONS PARTNER/OFFICER, COMPLIANCE OFFICER |
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FROM: |
GENERAL COUNSEL'S OFFICE |
| SUBJECT: | NEW RULE 59 - SEPARATELY MANAGED ACCOUNTS SERVICE |
On October 15, 2003, National Securities Clearing Corporation ("NSCC" or “the Corporation”) submitted a proposed rule change with the Securities and Exchange Commission ("SEC") to establish an information messaging system called the Separately Managed Accounts Service (“SMAS” or the “SMA Service”). SMAS will provide a messaging hub for the communication of information among sponsors of separately managed accounts and the investment managers participating in their programs. The service will be a nonguaranteed service of NSCC and it will not involve the settlement of securities transactions or funds through NSCC.
Messages transmitted through the SMA Service will consist of information such as account opening data (such as account profile notifications, verifications of funding amounts, and authorizations to trade) and account maintenance data (such as funding deposit amount notifications, funding withdrawals and account termination notifications). NSCC will not be responsible for the content of the messages transmitted through the SMA Service, nor will NSCC assume any liability for the completeness or accuracy of the information transmitted.
The full text of the rule change (SR-NSCC-2003-21) may be obtained by visiting our web site at www.nscc.com. 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 the above filing should be directed to Carol Jameson at (212) 855-3213, or to the undersigned at (212) 855-3203.
Karen L. Saperstein
Managing Director and General Counsel