A#	5903
P&S #:	5473
DATE:	September 24, 2004
TO:	ALL PARTICIPANTS
ATTENTION:	MANAGING PARTNER/OFFICER, OPERATIONS PARTNER/OFFICER, DIRECTOR OF OPERATIONS, DATA PROCESSING MANAGER, MANAGER P&S DEPARTMENT
FROM:	General Counsel's Office
SUBJECT:	Rule Filing - Additional Mark-to-the-market Payments

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On May 20, 2003¹, National Securities Clearing Corporation ("NSCC" or “the Corporation”) filed and on September 16, 2004 the Securities and Exchange Commission  ("SEC") approved², rule filing SR-NSCC-2003-09, which consisted of modifications to NSCC’s Rules and Procedures (the “Rules”).

This rule change modified Procedure XV (Clearing Fund Formula and Other Matters), B (Additional Mark-to-the-market Payments) to delete the specific criteria used for determining which securities meet classifications for additional mark-to-the-market payments, and provides for a more generalized provision.³ 

Questions regarding Additional Mark-to-the-market Payments should be directed to Michael Kopcak, Director, Risk at (212) 855-5765.  Questions regarding the rule filing may be addressed to Lisa T. Siebold, Assistant Secretary at (212) 855-3206, or to the undersigned at (212) 855-3203. 

Karen L. Saperstein

Managing Director and General Counsel