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Notice

Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Schedules

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Information about this document as published in the Federal Register.

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Start Preamble March 28, 2001.

Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) [1] , notice is hereby given that on January 12, 2001, National Securities Clearing Corporation (“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 primarily by NSCC. The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties.

I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change

The proposed rule change will allow NSCC to provide mutual fund/insurance services and fund members with a one-time partial discount of their 2000 service fees.[2]

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. NSCC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements.[3]

(A) Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change

The purpose of the proposed rule filing is to provide a one-time partial discount to NSCC fund members for Fund/Serv fees. NSCC's board of directors had determined to provide Rule 2 mutual fund/insurance services members and Rule 51 fund members with a one-time partial discount of their year 2000 Fund/Serv transaction fees, which fee is $.25 per side per order or transfer request.[4] This decision was made because of an increase in year 2000 gross margins due to rise in Fund/Serv transaction volumes and a determination not to fund certain Fund/Serv development work at this time.

NSCC intend to give mutual fund/insurance services members and fund members the benefit of this discount for the twelve months ending December 31, 2000. Based upon individual transaction volumes, each mutual fund/insurance services member fund member will receive a proportional share of an amount equivalent to 50% of the net excess revenues generated by the Fund service during the year 2000 period. The necessary adjustments to accommodate the refund will be reflected in billing statements transmitted to fund members in February 2001.

The proposed rule change is consistent with the requirements for Section 17A of the Act and the rules and regulations thereunder applicable to NSCC because it provides for the equitable allocation of dues, fees, and other charges 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 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)(A)(ii) of the Act and Rule 19b-4(f)(2) thereunder because the proposed rule change is changing a due, fee, or charge imposed by the self-regulatory organization. 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, including whether the proposed rule change is consistent with the Act. Persons making written submissions should file six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. 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 between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission's Public Reference Section, 450 Fifth Street, NW., Washington, DC 20549. Copies of such Start Printed Page 17983filing also will be available for inspection and copying at the principal office of NSCC. All submissions should refer to File No. SR-NSCC-01-01 and should be submitted by April 25, 2001.

Start Signature
For the Commission by the Division of Market Regulation, pursuant to delegated authority.

Margaret H. McFarland,

Deputy Secretary.

End Signature End Preamble

Footnotes

2.  NSCC amended the filing to make it clear that the one-time partial discount also would be provided to mutual fund/insurance services members. Letter from Richard Paley, Associate Counsel, NSCC (February 14, 2001).

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3.  The Commission had modified the text of the summaries prepared by NSCC.

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4.  NSCC Rules, Addendum A, Section IV(N)(2).

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[FR Doc. 01-8212 Filed 4-3-01; 8:45 am]

BILLING CODE 8010-01-M