Federal Register / Vol. 74, No. 20 / Monday, February 2, 2009 / Notices 5879 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78s(b)(3)(A)(iii). 

3 17 CFR 240.19b–4(f)(4). 

4The Commission has modified the text of the 

summaries prepared by NSCC. 

5Similar provisions are contained in NSCC rules 

relating to other mutual fund services. See, e.g., 

NSCC Rule 50, Section 17 and NSCC Rule 52, 

Section 46. 

6 15 U.S.C. 78q–1. 

7 15 U.S.C. 78s(b)(3)(A)(iii). 

8 17 CFR 240.19b–4(f)(4). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59302; File No. SR–NSCC– 

2008–12] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Allow the Transfer and 

Reregistration of Fund/SERV Eligible 

Fund Positions to and From a 

Financial Intermediary and a Mutual 

Fund Company 

January 27, 2009. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

December 23, 2008, the National 

Securities Clearing Corporation 

(‘‘NSCC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I, II, and III below, which items 

have been prepared primarily by NSCC. 

NSCC filed the proposal pursuant to 

Section 19(b)(3)(A)(iii) of the Act 2 and 

Rule 19b–4(f)(4) 3 thereunder so that the 

proposal was effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the rule change from 

interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The purpose of the rule change is to 

allow for transfer and reregistration of 

Fund/SERV Eligible Fund positions to 

and from a financial intermediary and a 

mutual fund company. 

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.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

Currently NSCC’s rules permit the 

transfer of Fund/SERV eligible shares 

from one member to another member 

through NSCC’s Automated Customer 

Account Transfer Service (‘‘ACATS’’) or 

from one fund member to another fund 

member through the Transfer of 

Retirement Assets (‘‘ToRA’’) service. In 

an effort to further standardize and 

automate the account transfer and 

reregistration process between members 

and mutual fund companies, NSCC is 

proposing to accommodate the transfer 

of customer mutual fund share 

registration: (i) Held by a customer 

directly at a mutual fund company to be 

reregistered in the name of a financial 

intermediary and (ii) held by a financial 

intermediary to be reregistered as a 

direct customer position at the mutual 

fund company. A member can request 

the transfer of registration in the 

capacity of the party receiving the 

reregistration or in the capacity of the 

party transferring the registration. The 

contra-side NSCC fund member must 

accept the reregistration request in order 

for NSCC to process it. 

NSCC is also proposing that, unless 

the parties agree otherwise, the member 

and fund member will comply with 

certain legal responsibilities associated 

with the reregistration. The member will 

agree that in initiating the request it has 

obtained the requisite authorization 

from the account holder and that it will 

provide a copy of it to the fund member 

upon request. The member also will 

indemnify the fund member for any 

liabilities incurred in or associated with 

the request other than those relating to 

the negligence or misconduct of the 

fund member. In connection with 

reregistrations of IRA and other taxdeferred accounts, a member that makes 

the transfer request in its capacity as a 

successor custodian agrees that it is so 

qualified under the provisions of the 

Internal Revenue Code. NSCC is also 

proposing that the members will agree 

that any dispute between them relating 

to these provisions will be resolved 

directly between them and that NSCC is 

not a party to such dispute and has no 

responsibility with respect to the 

enforcement or satisfaction of such 

provisions. In addition, the submission 

or processing of a transfer transaction 

through NSCC will not extinguish or 

otherwise affect any of the participants’ 

legal rights arising out of the 

transaction.5

The proposed rule change is 

consistent with Section 17A of the Act,6

as amended, because it will reduce the 

likelihood of manual processing errors, 

will lower costs, and will reduce the 

time needed to complete the transfer of 

customer mutual fund share 

registrations, thereby promoting the 

prompt and accurate clearance and 

settlement of reregistration of mutual 

fund share positions processed through 

NSCC’s Fund/SERV service. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

NSCC does not believe that the 

proposed rule change will have any 

impact or impose any burden on 

competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments relating to the 

proposed rule change have not yet 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 proposed rule change 

has become effective upon filing 

pursuant to Section 19(b)(3)(A)(iii) of 

the Act 7 and Rule 19b–4(f)(4) 8

thereunder because the proposed rule 

change effects a change in an existing 

service of a registered clearing agency 

that: (i) Does not adversely affect the 

safeguarding of securities or funds in 

the custody or control of the clearing 

agency or for which it is responsible and 

(ii) does not significantly affect the 

respective rights or obligations of the 

clearing agency or persons using the 

service. At any time within sixty days 

of the filing of the proposed 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 


dwashington3 on PROD1PC60 with NOTICES
5880 Federal Register / Vol. 74, No. 20 / Monday, February 2, 2009 / Notices 

9 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–NSCC–2008–12 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Elizabeth M. Murphy, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NSCC–2008–12. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). 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 

Room, 100 F Street, NE., Washington, 

DC 20549, on official business days 

between the hours of 10 a.m. and 3 p.m. 

Copies of such filings also will be 

available for inspection and copying at 

the principal office of NSCC and on 

NSCC’s Web site at http:// 

www.dtcc.com/downloads/legal/ 

rule_filings/2008/nscc/2008-12.pdf. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–NSCC–2008–12 and should 

be submitted on or before February 23, 

2009. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. E9–2120 Filed 1–30–09; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–59270; File No. SR– 

NYSEArca–2009–01] 

Self-Regulatory Organizations; Notice 

of Filing of Proposed Rule Change by 

NYSE Arca, Inc. Relating to Reduction 

of Annual Fee for Certain Issues Listed 

Under Rule 5.2(j)(6). 

January 21, 2009. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

6, 2009, NYSE Arca, Inc. (‘‘NYSE Arca’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(the ‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the self-regulatory 

organization. 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 Exchange, through its wholly 

owned subsidiary NYSE Arca Equities, 

Inc. (‘‘NYSE Arca Equities’’), is 

proposing to amend its Schedule of Fees 

and Charges for Exchange Services 

(‘‘Fee Schedule’’) to revise the Annual 

Fees applicable to securities listed in 

calendar year 2009 under Rule 5.2(j)(6) 

on NYSE Arca, LLC (‘‘NYSE Arca 

Marketplace’’), the equities facility of 

NYSE Arca Equities. The text of the 

proposed rule change is available on the 

Exchange’s Web Site at http:// 

www.nyx.com, at the Exchange’s 

principal office, and at the 

Commission’s public reference room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NYSE Arca has determined to amend 

the Exchange’s Fee Schedule to revise 

the Annual Fee applicable to securities 

listed on the NYSE Arca Marketplace in 

calendar year 2009 under Rule 5.2(j)(6) 

(Equity Index-Linked Securities, 

Commodity-Linked Securities, 

Currency-Linked Securities, Fixed 

Income Index-Linked Securities, 

Futures-Linked Securities and 

Multifactor Indexed-Linked Securities). 

Specifically, the Exchange proposes to 

add new footnote 10 to the Fee 

Schedule to state that, during 2009, the 

Annual Fee for an issue of securities 

listed under Rule 5.2(j)(6) of up to 

500,000 shares outstanding will be 

$5,000, pro-rated based on days 

remaining in 2009. 

Under the current Fee Schedule for 

Structured Products, which include 

securities listed under Rule 5.2(j)(6), the 

Annual Fee ranges from $10,000 to 

$55,000, based on the total number of 

securities outstanding per listed issue. 

The current Annual Fee for issues with 

up to 6 million shares outstanding is 

$10,000. The proposed reduced Annual 

Fee would apply for calendar year 2009 

to issues newly listed on the NYSE Arca 

Marketplace beginning as of January 1, 

2009, and would not apply to issues 

listed prior to or after calendar year 

2009. 

As an example of how the Annual Fee 

would apply to such issues, if an Equity 

Index-Linked Security lists on the NYSE 

Arca Marketplace on July 1, 2009 with 

500,000 shares outstanding, such 

security would pay a pro-rated Annual 

Fee for 2009 of $2500 (1⁄2 × $5,000). 

The Exchange believes that 

temporarily reducing the Annual Fee for 

newly listed securities listed under Rule 

5.2(j)(6), which include Exchange 

Traded Notes or ‘‘ETNs’’, will provide 

an incentive for issuers to introduce and 

list more such products on the NYSE 

Arca Marketplace in 2009, thereby 

increasing competition among such 

products. 


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