| A# |
5929 |
| P&S #: |
5499 |
| DATE: |
November 10, 2004 |
| TO: |
ALL PARTICIPANTS |
| ATTENTION: |
MANAGING PARTNER / OFFICER; OPERATIONS PARTNER / OFFICER; DIRECTOR OF OPERATIONS; DATA PROCESSING MANAGER; MANAGER P & S DEPARTMENT; COMPLIANCE OFFICER |
| FROM: | GENERAL COUNSEL'S OFFICE |
| SUBJECT: | FEE REVISION FOR NSCC CORPORATE, MUNICIPAL, & UIT (CMU) PRODUCT LINE |
National Securities Clearing Corporation (“NSCC”) has filed a rule change with the Securities and Exchange Commission (“SEC”) pursuant to Section 19(b)(3) of the Securities Exchange Act of 1934. This rule change, which will become effective on January 1, 2005, modifies the trade comparison and trade recording fees relating to the NSCC fixed income products.
NSCC’s implementation of the real-time trade matching service, RTTMTM*, has provided its corporate bond, municipal security and unit investment trust (collectively, “CMU”) participants with several benefits including real-time trade status information, reduced intra-day exposures related to market risk, as well as a single pipeline for fixed income submissions in a standardized format for both trade matching and regulatory price reporting. Additionally, the RTTM Web service provides an input vehicle which offers real-time trade status information, sophisticated search tools and report storage capabilities. The operating costs associated with supporting real time industry efforts are significant and NSCC is proposing that the relevant fees be increased.
Currently, there are two separate fees, one for trade recording ($0.45) and one for trade comparison ($0.75). NSCC believes that because the same process is used for both the trade recording and trade comparison functions, charging two different fee amounts for these functions is no longer justified. NSCC is proposing that they each be increased to $1.00.
The full text of the rule change (SR-NSCC-2004-08)
may be obtained by visiting our web site at www.nscc.com. Written comments
on the proposed rule change 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 on the rule filing should be directed to John Petrofsky, Associate Counsel, at (212) 855-7634.
Karen L. Saperstein,
Managing Director and General Counsel
* RTTMTM is a trademark of the Fixed Income Clearing Corporation.