Federal Register / Vol. 65, No. 84 / Monday, May 1, 2000 / Notices 25411

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

2Securities Exchange Act Release No. 42323

(January 7, 2000), 65 FR 2449 (January 14, 2000).

3 DTC’s current procedures relating

collateralization and risk management controls are

set forth in memorandums dated March 17, 1995,

which are attached as Exhibit 3 to DTC’s filing.

4For a complete description of DTC’s

collateralization procedures, refer to Exhibit 2 of

DTC’s rule filing. 5 15 U.S.C. 78q–1(b)(3)F).

6 17 CFR 200.30–3(a)(12).

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

2 17 CFR 240.19b–4.

U.S.C. 552(c)(4), (8), (9)(A) and (10) and

17 CFR 200.402(a)(4), (8), (9)(A) and

(10), permit consideration for the

scheduled matters at the closed meeting.

The subject matter of the closed

meeting scheduled Wednesday, May 3,

2000 will be:

Institution and settlement of

injunctive actions; and, Institution and

settlement of administrative

proceedings of an enforcement nature.

At times, changes in Commission

priorities require alterations in the

scheduling of meeting items. For further

information and to ascertain what, if

any, matters have been added, deleted

or postponed, please contact: The Office

of the Secretary at (202) 942–7070.

Dated: April 26, 2000.

Jonathan G. Katz,

Secretary.

[FR Doc. 00–10836 Filed 4–26–00; 4:20 pm]

BILLING CODE 8101–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42711; File No. SR–DTC–

99–24]

Self-Regulatory Organizations; The

Depository Trust Company; Order

Approving a Proposed Rule Change

Relating to Collateralization

Procedures

April 21, 2000.

On October 27, 1999, The Depository

Trust Company (‘‘DTC’’) filed with the

Securities and Exchange Commission

(‘‘Commission’’) a proposed rule change

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

Securities Exchange Act of 1934

(‘‘Act’’).1 Notice of the proposal was

published in the Federal Register on

January 14, 2000.2 No comment letters

were received. For the reasons

discussed below, the Commission is

approving the proposed rule change.

I. Description

The rule change revises DTC’s

collateralization procedures 3 to provide

for a systemic monitor to withhold

collateral value for collateral associated

with the participant (e.g., the

participant’s own commercial paper). 4

Specifically, DTC will implement an

Issuer/Participant Number (‘‘IPN’’

control to systemically monitor

collateral received in each participant’s

account.

The IPN will identify securities

related to a participant and will

withhold from the participant any

collateral value associated with the

securities. For example, transactions

related to an issuing/paying agent

(‘‘IPA’’) account (e.g., receives versus

payment) will continue to be processed

in essentially same manner except that

no value will be given to the IPA’s

collateral monitor for the collateral

value of securities received that are

associated with the IPA.

IPN is based on the legal structure of

a participant; therefore, the IPA control

will apply to every participant’s

account. For example, if a participant

has an IPA account through which it

issues money market instrument

securities (‘‘MMI securities’’) on its own

behalf and also has a custody account

and if the participant processes an MMI

issuance delivery of its own MMI

securities from its IPA account to its

custody account, the participant would

receive no collateral value in the

custody account for the delivery of the

MMI securities. IPN will not affect

DTC’s calculations of a participant’s net

debit cap or largest provisional net

credit.

II. Discussion

Section 17A(b)(3)(F) 5 of the Act

requires that the rules of a clearing

agency be designed to assure the

safeguarding of securities and funds

which are in the custody or control of

the clearing agency or for which the

clearing agency is responsible. The

Commission believes that DTC’s

proposed rule change is consistent with

DTC’s obligations under the Act because

the new procedures will reduce the risk

that a participant’s collateral will not be

sufficient to satisfy its settlement

obligations.

DTC uses collateralization as a

method to protect itself and its

participant from the inability of one or

more participants to pay its settlement

obligations. Collateralization ensures

that at all times each participant

maintains collateral in its account equal

to or greater than its net cash settlement

obligation (i.e., its net debit). If a

participant were to fail to pay its

settlement obligation, DTC would use

the collateral in the failing participant’s

account to support any borrowings

necessary to finance the failing

participant’s settlement obligation or

could liquidate the collateral to cover

the participant’s settlement obligation. If

a participant were to receive value in

DTC’s collateral monitor for collateral

that is associated with the participant,

DTC would probably not have sufficient

collateral if that participant were to

default because the participant’s

collateral would probably have little or

no value in a default situation.

Accordingly, the rule change establishes

a systemic monitor that will withhold

collateral value for collateral associated

with a participant. This should help

ensure that DTC will have sufficient

resources to satisfy outstanding

settlement obligations in the event of a

participant default.

III. Conclusion

On the basis of the foregoing, the

Commission finds that the proposal is

consistent with the requirements of the

Act and in particular with the

requirements of Section 17A of the Act

and the rules and regulations

thereunder.

It Is Therefore Ordered, pursuant to

Section 19(b)(2) of the Act, that the

proposed rule change (File No. SR–

DTC–99–24) be, and hereby is,

approved.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–10729 Filed 4–28–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42715; File No. SR–NASD–

00–19]

Self-Regulatory Organizations; Notice

of Filing and Order Granting

Accelerated Approval of Proposed

Rule Change by the National

Association of Securities Dealers, Inc.

Relating to Level I Market Data Fees

April 24, 2000.

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

Securities Exchange Act of 1934

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 13,

2000, the National Association of

Securities Dealers, Inc. (‘‘NASD’’ or

‘‘Association’’), through its whollyowned subsidiary, Nasdaq Stock

Market, Inc. (‘‘Nasdaq’’), filed with the

Securities and Exchange Commission

(‘‘SEC’’ or ‘‘Commission’’) the proposed

rule change as described in Items I and

II below, which Items have been

25412 Federal Register / Vol. 65, No. 84 / Monday, May 1, 2000 / Notices

3See Letter from Jeffrey S. Davis, Assistant

General Counsel, Nasdaq, to Katherine A. England,

Assistant Director, Division of Market Regulation,

Commission, dated April 18, 2000 (‘‘Amendment

No. 1’’). Amendment No. 1 clarifies that the pilot

program will end on March 30, 2001.

4See Exchange Act Release No. 41499 (June 9,

1999), 64 FR 32910 (June 19, 1999).

5 Id.

6 15 U.S.C. 78o–3(b)(5).

7 In reviewing this proposal, the Commission has

considered its impact on efficiency, competition,

and capital formation. 15 U.S.C. 78c(f).

8 15 U.S.C. 78o–3(b)(5).

prepared by Nasdaq. On April 18, 2000,

Nasdaq submitted Amendment No. 1 to

the proposed rule change.3 The

Commission is publishing this notice to

solicit comments on the proposed rule

change from interested persons. For the

reasons discussed below, the

Commission is granting accelerated

approval of the proposed rule change, as

amended.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

Nasdaq filed a proposed rule change

to amend NASD Rule 7010. Under the

proposal, Nasdaq will establish a oneyear pilot program, commencing with

the April 3, 2000 billing period, to

reduce by 50% the users fees for Level

1 market data delivered to nonprofessional users on a monthly basis,

and to maintain the already-reduced

fees for Level 1 market data delivered to

non-professional users on a per query

basis.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission,

Nasdaq 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 III below. Nasdaq has prepared

summaries, set forth in Sections A, B,

and C below, of 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

1. Purpose

Nasdaq states that it has consistently

supported the broadest, most effective

dissemination of market information to

public investors. Towards that end, in

April of 1999, Nasdaq implemented a

one-year pilot program that reduced by

50% the users fees for Level 1 market

data delivered to non-professional users

on a monthly basis (from $4 to $2), and

also for Level 1 market data delivered to

non-professional users on a per query

basis (from $.01 to $.005).4 In support of

that pilot program, Nasdaq cited

increased usage of Level 1 market data,

and the expectation that reduced fees

would trigger a further expansion of

usage 5 Nasdaq has determined that the

fee reduction has, in fact, led to

increased usage of Level 1 market data.

To reaffirm its commitment to the

broad dissemination of this data,

Nasdaq is proposing a new one-year

pilot program to reduce by 50% the

users fees for Level 1 market data

delivered to non-professional users on a

monthly basis, and to maintain the

current fees for Level 1 market data

delivered to non-professional users on a

per query basis. Under the proposed

pilot, the non-professional per user fee

would be reduced from $2 to $1 per

month (equating to a 75% reduction in

fees in two years), and the per query fee

would be maintained at $.005 per query.

The non-professional user fees will be

automatically billed to users at the

reduced rate.

Nasdaq believes that reducing these

market data fees reaffirms its

commitment to individual investors,

and responds to the dramatic increase in

the demand for real-time market data by

non-professional market participants. In

addition, Nasdaq believes that reduced

Nasdaq rates will lessen the costs the

NASD member firms of supplying realtime market data to their customers

through automated means, and may

encourage current delayed-data vendors

to offer increased access to real-time

Level 1 data to their subscribers.

2. Statutory Basis

Nasdaq believes that the proposed

rule change is consistent with the

provisions of Section 15A(b)(5) 6 of the

Act in that the proposal provides for the

equitable allocation of reasonable dues,

fees, and other charges among members

and issuers and other persons using any

facility or system which the association

operates or controls.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

Nasdaq does not believe that the

proposed rule change will result in any

burden on competition.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Nasdaq has neither solicited nor

received written comments on the

proposed rule change.

III. 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, N.W.,

Washington, D.C. 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

Room. Copies of such filing will also be

available for inspection and copying at

the principal office of the NASD. All

submissions should refer to File No.

SR–NASD–00–19 and should be

submitted by May 22, 2000.

IV. Commission’s Findings and Order

Granting Accelerated Approval of the

Proposed Rule Change

The Commission finds that the

proposed rule change is consistent with

the requirements of the Act 7 and the

rules and regulations thereunder

applicable to a national securities

association. Specifically, the proposed

rule change is consistent with Section

15A(b)(5) 8 in that the proposal should

provide for the equitable allocation of

reasonable dues, fees, and other charges

among members and issuers and other

persons using any facility or system

which the Association operates or

controls.

Recent technological developments

have allowed vendors to provide their

customers with more efficient and cost

effective methods of executing securities

transactions. The Commission expects

that by reducing market data access fees,

the investor will further benefit by a

reduction in costs of executing these

transactions. For the investor to make

sound financial decisions, efficient and

inexpensive access to market data

information is vital. Thus, the

Commission believes that reducing the

market data fees should enhance

investor access, and may encourage

Federal Register / Vol. 65, No. 84 / Monday, May 1, 2000 / Notices 25413

9 15 U.S.C. 78s(b)(2).

10 Id.

11 17 CFR 200.30–3(a)(12).

increased investor participation in the

securities.

Pursuant to Section 19(b)(2),9 the

Commission finds good cause for

approving the proposed rule change, as

amended, prior to the thirtieth day after

the date of publication of notice of the

filing in the Federal Register. The

Commission believes that granting

accelerated approval of the proposal

will allow Nasdaq to expeditiously

implement the pilot program to reduce

market data fees without any

unnecessary delay and should confer a

benefit upon those firms that provide

real-time data to their customers and

subscribers. The Commission also notes

that it did not receive any comments on

the previous pilot program.

Accordingly, the Commission does not

believe that the current filing raises any

regulatory issues not raised by the

previous filing.

It is Therefore Ordered, pursuant to

Section 19(b)(2) 10 of the Act, that the

proposed rule change, as amended, (SR–

NASD–00–19) is approved on an

accelerated basis, for the pilot period

ending March 30, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.11

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–10726 Filed 4–28–00; 8:45 am]

BILLING CODE 8010–01–M

SOCIAL SECURITY ADMINISTRATION

Agency Information Collection

Activities: Proposed Request and

Comment Request

In compliance with Public Law 104–

13, the Paperwork Reduction Act of

1995, SSA is providing notice of its

information collections that require

submission to the Office of Management

and Budget (OMB). SSA is soliciting

comments on the accuracy of the

agency’s burden estimate; the need for

the information; its practical utility;

ways to enhance its quality, utility and

clarity; and on ways to minimize burden

on respondents, including the use of

automated collection techniques or

other forms of information technology.

I. The information collections listed

below will be submitted to OMB within

60 days from the date of this notice.

Therefore, comments and

recommendations regarding the

information collections would be most

useful if received by the Agency within

60 days from the date of this

publication. Comments should be

directed to the SSA Reports Clearance

Officer at the address listed at the end

of this publication. You can obtain a

copy of the collection instruments by

calling the SSA Reports Clearance

Officer on (410) 965–4145, or by writing

to him at the address listed at the end

of this publication.

1. Supplement to Claim of Person

Outside the United States-0960–0051.

The information collected on Form

SSA–21 is used by the Social Security

Administration (SSA) to determine

continuing entitlement to Social

Security benefits and the proper benefit

amounts of alien beneficiaries living

outside the United States (U.S.). It is

also used to determine whether benefits

are subject to withholding tax. The

respondents are comprised of

individuals entitled to Social Security

benefits, who are, will be, or have been

residing outside the U.S.

Number of Respondents: 35,000.

Frequency of Response: 1.

Average Burden Per Response: 5

minutes.

Estimated Annual Burden: 2,917.

2. Statement of Care and

Responsibility for Beneficiary-0960–

0109. SSA uses Form SSA–788 to select

the most qualified representative payee

who will apply the benefits in the

beneficiary’s best interests. The

respondents are individuals who have

custody of a beneficiary where someone

else has filed to be the beneficiary’s

payee.

Number of Respondents: 130,000.

Frequency of Response: 1.

Average Burden Per Response: 10

minutes.

Estimated Annual Burden: 21,667

hours.

II. The information collections listed

below have been submitted to OMB for

clearance. Written comments and

recommendations on the information

collections would be most useful if

received within 30 days from the date

of this publication. Comments should be

directed to the SSA Reports Clearance

Officer and the OMB Desk Officer at the

addresses listed at the end of this

publication. You can obtain a copy of

the OMB clearance packages by calling

the SSA Reports Clearance Officer on

(410) 965–4145, or by writing to him.

1. Appointment of Representative—

0960–0527. The information on Form

SSA–1696 is used by SSA to verify the

applicant’s appointment of a

representative. The form allows SSA to

inform the representative of issues that

affect the applicant’s claim. The

respondents are applicants who notify

SSA that they have appointed a person

to represent them.

Number of Respondents: 412,653.

Frequency of Response: 1.

Average Burden Per Response: 10

minutes.

Estimated Average Burden: 68,776

hours.

2. Application for Social Security

Disability Benefits—0960–0060. SSA

uses the information collected on Form

SSA–16 to determine eligibility for

Social Security disability benefits. The

respondents are applicants for such

benefits.

Number of Respondents: 1,185,942.

Frequency of Response: 1.

Average Burden Per Response: 20

minutes.

Estimated Average Burden: 395,314

hours.

3. Request to be Selected as Payee—

0960–0014. The information collected

on Form SSA–11–BK is used to

determine the proper payee for a Social

Security beneficiary, and it is designed

to aid in the investigation of a payee

applicant. The form will establish the

applicant’s relationship to the

beneficiary, the justification, the

concern for the beneficiary and the

manner in which the benefits will be

used. The respondents are applicants for

selection as representative payee for Old

Age, Survivors and Disability Insurance

(OASDI), Supplemental Security Income

(SSI), Black Lung benefits and title–VIII

Special Veterans Benefits.

Number of Respondents: 2,121,686.

Frequency of Response: 1.

Average Burden Per Response: 10.5

minutes.

Estimated Annual Burden: 371,295

hours.

4. Application for Special Benefits for

World War II Veterans—0960–0615. The

information collected on Form SSA–

2000 will be used by SSA to elicit the

information necessary to determine

entitlement of an individual to benefits

under title VIII of the Social Security

Act. Respondents are certain World War

II Veterans as identified under title VIII.

Number of Respondents: 12,000.

Frequency of Response: 1.

Average Burden Per Response: 20

minutes.

Estimated Annual Burden: 4,000

hours.

5. Claim for Amounts Due in the Case

of a Deceased Beneficiary—0960–0101.

Section 204(d) of the Social Security Act

provides that if a beneficiary dies before

payment of Social Security benefits has

been completed, the amount due will be

paid to the persons meeting specified

qualifications. The information

collected on Form SSA–1724 is used by

SSA to determine whether an individual