Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices 36203

7 15 U.S.C. 78o-3(b)(6).

8 15 U.S.C. 78k-1(a)(1)(C)(iii).

9The Commission notes that Nasdaq gave the

Commission notice of its intent to file the proposed

rule change through its original filing of the

proposal pursuant to Section 19(b)(2) of the Act on

April 14, 2000.

10 15 U.S.C. 78s(b)(3)(A).

11 17 CFR 240.19b–4(f)(6).

12 17 CFR 200.30–3(a)(12).

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

2The Commission has modified the text of the

summaries prepared by NSCC.

3Securities Exchange Act Release No. 42336

(January 12, 2000), 65 FR 3514.

just agency crosses, in exchange-listed

securities that are based on a weighted

average or other special pricing

formulae, to be reported with the .W

modifier.

2. Statutory Basis

Nasdaq believes that the proposed

rule change is consistent with Section

15A(b)(6) 7of the Act. Among other

things, Section 15A(b)(6) requires that

the rules of a national securities

association be designed to prevent

fraudulent and manipulative acts and

practices, to promote just and equitable

principles of trade, to foster cooperation

and coordination with persons engaged

in regulating, clearing, settling,

processing information with respect to,

and facilitating transactions in

securities, to remove impediments to

and perfect the mechanism of a free and

open market and a national market

system and in general to protect

investors and the public interest. In

addition, Nasdaq believes that the

proposed rule change furthers the

objective set forth in Section

11A(a)(1)(C)(iii) 8of the Act by ensuring

the availability to brokers, dealers and

investors of information with respect to

quotations for and transactions in

securities. Nasdaq believes that

reporting transactions in exchangelisted securities that are marked with a

special indicator to identify their unique

pricing formulae is appropriate for

regulatory purposes and will reduce

investor confusion with regard to these

transactions.

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 that is not

necessary or appropriate in furtherance

of the purposes of the Act.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participants, or Others

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

Because the foregoing proposed rule

change: (1) Does not significantly affect

the protection of investors or the public

interest; (2) does not impose any

significant burden on competition; and

(3) does not become operative for 30

days from May 17, 2000, the date on

which it was filed and, since the

Exchange provided the Commission

with written notice of its intent to file

the proposed rule change at least five

business days prior to the filing date,9

the proposed rule change has become

effective pursuant to Section 19(b)(3)(A)

of the Act 10 and subparagraph (f)(6) of

Rule 19b–4 thereunder.11

At any time within 60 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

arguments concerning the foregoing,

including whether the proposed rule is

consistent with the Act. Person 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–00–21 and should be

submitted by June 28, 2000.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14281 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42859; File No. SR–NSCC–

00–04]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Notice of Filing and

Immediate Effectiveness of Proposed

Rule Change Relating to a Change in

Fee Schedule

May 30, 2000.

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

Securities Exchange Act of 1934

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

April 6, 2000, the 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 consists of

changes to NSCC’s fee schedule.

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.2

(A) Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

On December 30, 1999, NSCC filed a

rule change to amend its fee schedule to

charge fees to members using its

Insurance Processing Services (‘‘IPS’’)

for the transmission of test, as well as

production, files.3 These charges

became effective on January 3, 2000.

However, in order to encourage industry

participation in pilot test development

programs, NSCC has determined that it

36204 Federal Register / Vol. 65, No. 110 / Wednesday, June 7, 2000 / Notices

4 15 U.S.C. 78s(b)(3)(A)(ii)

5 17 CFR 240.19b–4(f)(2).

6 17 CFR 200.30–3(a)(12).

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

2 In its amendment, NSCC withdrew any

proposed changes to Addendum O to NSCC Rules

and requested that the Commission extend the

temporary approval of Addendum O in its current

form. Letter from Richard Paley, Associate Counsel,

NSCC (May 11, 2000).

3The Commission has modified the text of the

summaries prepared by NSCC.

4For a complete discussion of NSCC’s Class A

Surveillance procedures and collateralization

requirements, refer to Securities Exchange Act

Release Nos. 37202 (May 10, 1996), 61 FR 24993

[File No. SR–NSCC–95–17]; 38622 (May 19, 1997),

62 FR 27285 [File No. SR–NSCC–97–04]; 40034

will not impose test fees on participants

participating with NSCC in pilot test

programs to develop service

enhancements or additional IPS

products. Thus a participant in a pilot

test program will not be charged for the

transmission of pilot test files for the

period of time from the date the

participant commences participation in

the pilot program through the date that

is the last business day of the calendar

month immediately following the

month during which the pilot

enhancement or new IPS product is first

released by NSCC into production. Any

current IPS participants participating in

a prior pilot development program will

not be charged for their applicable test

files through April 30, 2000. Thereafter,

they will be charged in accordance with

NSCC’s revised fee schedule.

The proposed rule change is

consistent with the requirements of the

Act, as amended, and the rules and

regulations thereunder since 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 have an

impact on 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)(A)(ii) 4 of the Act and Rule 19b–

4(f)(2) 5 promulgated thereunder

because the proposal establishes or

changes a due, fee, or other charge

imposed by NSCC. At any time within

sixty days of the filing of such 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

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

filing also will be available for

inspection and copying at the principal

office of NSCC. All submissions should

refer to File No. SR–NSCC–00–04 and

should be submitted by June 28, 2000.

For the Commission by the Division

of Market Regulation, pursuant to

delegated authority.6

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 00–14249 Filed 6–6–00; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–42864; File No. SR–NSCC–

99–09]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Notice of Filing and Order

Granting Accelerated Approval of a

Proposed Rule Change Relating to

Additional Procedures for Class A

Surveillance of Certain Settling

Members and to the Collection of

Clearing Fund and Other Collateral

Deposits From These Settling

Members

Pursuant to section 19(b)(i) of the

Securities Exchange Act of 1934

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

July 16, 1999, the National Securities

Clearing Corporation (‘‘NSCC’’) filed

with the Securities and Exchange

Commission (‘‘Commission’’) and on

May 12, 2000, amended the proposed

rule change as described in Items I and

II below, which items have been

prepared primarily by NSCC.2 The

Commission is publishing this notice

and order to solicit comments from

interested persons and to grant

accelerated approval of the proposed

rule change through May 31, 2001.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change extends the

temporary approval of additional

procedures that govern the placement of

NSCC members on Class A surveillance

and the clearing fund deposit and other

collateral requirements for such

members.

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

NSCC seeks to extend the temporary

approval of Addendum O, which

governs the application of Class A

surveillance procedures to and the

additional collateralization

requirements for settling members that

engage in certain over-the-counter

(‘‘OTC’’) market making activities.

Addendum O is designed to decrease

the risks associated with OTC market

makers by use of Class A surveillance

and special collateralization procedures.

The Commission originally granted

temporary approval on May 10, 1996,

and has subsequently extended its

approval through May 31, 2000.4