File No. SR-NSCC-97-5
Securities and Exchange Commission
Washington, D.C. 20549
______________________________
Form 19b-4
Proposed Rule Change
By
NATIONAL SECURITIES CLEARING CORPORATION
Pursuant to Rule 19b-4 under the
Securities Exchange Act of 1934
1. Text of Proposed Rule Change.
(a) The text of the proposed rule change consists of revisions to NSCC's Fee Structure and is attached hereto as Exhibit A.
(b) Not applicable.
(c) Not applicable.
2. Procedures of the Self-Regulatory Organization.
(a) The proposed rule change has been approved pursuant to authority delegated by the Board of Directors of National Securities Clearing Corporation ("NSCC" or the "Corporation").
(b) Contact regarding questions and comments: Richard J. Paley (212) 412-8874
3. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change.
(a) The purpose of this rule change is to revise the Position Record Fee in connection with the Corporation's Networking service.
NSCC has determined it would be appropriate to reduce its fees for position records. Therefore effective May 1, 1997, for billing in June 1997, the new Fee Structure will permit participating Networking firms to receive for no additional charge position records twice a month, rather than the present once a month. The current charge for "excess" or extra position records will remain unchanged.
In connection with the revised Fee Structure, the Corporation's Procedures will be updated to reflect that in addition to broker/dealers, all participating Networking firms, including banks, trusts and others, will be permitted to receive position records from NSCC.
(b) The proposed rule change is consistent with the requirements of the Securities Exchange Act of 1934, as amended (the "Act"), and the rules and regulations thereunder, since it provides for the equitable allocation of fees among NSCC's participants.
4. Self-Regulatory Organization's Statement on Burden on Competition.
NSCC does not believe that the proposed rule change will impact or impose a burden on competition.
5. Self-Regulatory Organizations Statement on Comments on the Proposed Rule Change Received from Members, Participants, or Others.
No written comments relating to the proposed rule change have been solicited or received. NSCC will notify the Commission of any written comments received by NSCC.
6 Extension of Time Period for Commission Action.
Not applicable.
7. Basis for Summary Effectiveness Pursuant to Section 19(b)(3) or for Accelerated Effectiveness Pursuant to Section 19(b)(2).
(a) The proposed rule change is to take effect pursuant to paragraph (A) of Section 19(b)(3) of the Act.
(b) The proposed rule change modifies NSCC's Fee Structure and provides for the equitable allocation of fees among NSCC's participants.
(c) Not applicable.
(d) Not applicable.
8. Proposed Rule Change Based on Rules of Another Self- Regulatory Organization or of the Commission.
The proposed rule change is not based on a rule either of another self-regulatory organization or of the Commission.
9. Exhibits.
Exhibit A - Text of the proposed rule change.
Exhibit B - Notice of proposed rule change for publication in the Federal Register.
SIGNATURES
Pursuant to the requirements of the Act, the self-regulatory organization has duly caused this filing to be signed on its behalf by the undersigned thereunto duly authorized.
NATIONAL SECURITIES CLEARING CORPORATION
By:_____________________________________
Karen L. Saperstein
Managing Director andDeputy General Counsel
Exhibit A
Underlined, boldface text indicates additions.
[Bracketed, boldface] text indicates deletions.
Modify Addendum A to NSCC's Rules and Procedures as follows:
FEE STRUCTURE
* * *
IV. OTHER SERVICE FEES
* * *
O. NETWORKING
* * *
3. Monthly Position Record Fee:
For [broker/dealers] Networking firms who request more than 5000 records in excess of twice their total sub-accounts
$1.50 per thousand sub-account records in excess of twice the [broker/dealer's] Networking firm's sub-accounts [ - per month]
* * *
Exhibit B
SECURITIES AND EXCHANGE COMMISSION
(Release No. 34- ; File No. SR-NSCC-97-5)
Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of a Proposed Rule Change Revising Service Fees.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the "Act"), 15 U.S.C. '78s(b)(1), notice is hereby given that on , NSCC filed with the Securities and Exchange Commission ("Commission") the proposed rule change as described in Items I, II and III below, which Items have been prepared by NSCC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change.
The proposed rule consists of revisions to NSCC's Fee Structure.
II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change.
In its filing with the Commission, NSCC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. Set forth in sections (A), (B) and (C) below, are the most significant aspects of such statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change.
(a) The purpose of this rule change is to revise the Position Record Fee in connection with the Corporation's Networking service.
NSCC has determined it would be appropriate to reduce its fees for position records. Therefore effective May 1, 1997, for billing in June 1997, the new Fee Structure will permit participating Networking firms to receive for no additional charge position records twice a month, rather than the present once a month. The current charge for "excess" or extra position records will remain unchanged.
In connection with the revised Fee Structure, the Corporation=s Procedures will be updated to reflect that in addition to broker/dealers, all participating Networking firms, including banks, trusts and others, will be permitted to receive position records from NSCC.
(b) The proposed rule change is consistent with the requirements of the Securities Exchange Act of 1934, as amended (the "Act"), and the rules and regulations thereunder, since it provides for the equitable allocation of fees among NSCC's participants
(B) Self-Regulatory Organization's Statement on Burden on Competition.
NSCC does not believe that the proposed rule change will impact or impose a burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants, or Others.
No written comments relating to the proposed rule change have been solicited or received. NSCC will notify the Commission of any written comments received by NSCC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action.
The foregoing rule change has become effective pursuant to Section 19(b)(3) of the Act and subparagraph (e) of Securities Exchange Act Rule 19b-4. At any time within sixty days of the filing of such rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments.
Interested persons are invited to submit written data, views and arguments concerning the foregoing. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street N.W., Washington, D.C. 20549. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change that are filed with Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with provisions of 5 U.S.C. '552, will be available for inspection and copying in the Commission's Public Reference Section, 450 Fifth Street N.W., Washington, D.C. 20549. Copies of such filing will also be available for inspection and copying at the principal office of the NSCC. All submissions should refer to the file number in the caption above and should be submitted within days after the date of this publication.
For the Commission by the Division of Market Regulation, pursuant to delegated authority.
Jonathan G. Katz
Secretary
Dated:
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