A#

5938

P&S #:

5508

DATE:

November 29, 2004

TO:

All Participants and Other Users

ATTENTION:

Managing Partner/Officer, Cashier, Operations Partner/Officer, Director of Operations, Manager Data Processing Department
FROM: Product Management
SUBJECT:

NSCC Service Fees 2005 Revisions Effective January 3, 2005

NSCC’s Board of Directors has approved fee revisions to selected NSCC product lines, as described below. The NSCC fee adjustments affect two NSCC services, and continue our effort to move all product lines towards full cost recovery.  These changes include:

NSCC has also adopted a fee for a new service supporting automated customer account transfers of insurance assets.

In conjunction with the implementation of the NSCC fee changes, DTC and FICC are also implementing certain fee changes (see DTC Important Notice B#7149 and FICC Important Notice #GOV146.04).

The details of the revisions to NSCC fees can be found in the attached 2005 NSCC Service Fee Revisions document, and appropriate rule filings will be made with the Securities and Exchange Commission. If you have any questions regarding the fee revisions that will become effective in 2005, or the impact on your 2005 bills, please contact your Relationship Manager.

All fees are scheduled to become effective January 3, 2005 for billing in February 2005< .

Dwight Arthur
Managing Director
Product Marketing and Development