19780 Federal Register / Vol. 63, No. 76 /Tuesday, April 21, 1998 / Notices

9 15 U.S.C. 78o–3(b)(6).

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

11 17 CFR 19b–4(e).

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.

electronic communication systems to

appropriate supervision and review, the

firm can allow employees to correspond

with customers through such systems.

2. Statutory Basis

The NASDR believes the proposed

rule change is consistent with Section

15A(b)(6) of the Act,9 which requires,

among other things, that the

Association’s rules must be designed to

prevent fraudulent and manipulative

acts and practices, to promote just and

equitable principles of trade, and, in

general, to protect investors and the

public interest. The NASD believes that

implementing the effective date of the

new rules with the exception of the

requirement to review all incoming nonelectronic correspondence is consistent

with these requirements.

B. Self-Regulatory Organization’s

Statement on Burden on Competition

NASDR does not believe that the

proposed rule change will impose a

burden on competition that is not

necessary or appropriate in furtherance

of the purposes of the Act, as amended.

C. Self-Regulatory Organization’s

Statement on Comments on the

Proposed Rule Change Received From

Members, Participation or Others

Written comments were neither

solicited nor received.

III. Date of Effectiveness of the

Proposed Rule Change and Timing for

Commission Action

The foregoing rule change constitutes

a stated policy, practice, or

interpretation with respect to the

meaning, administration or enforcement

of an existing rule of the Association

and, therefore, has become effective

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

Act 10 and subparagraph (e) of rule 19b–

4 thereunder.11

At any time within 60 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 submission

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 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, 450 Fifth Street, N.W.,

Washington, D.C. Copies of such filing

also will be available for inspection and

copying at the NASD. All submissions

should refer to File No. SR–NASD–98–

31 and should be submitted by May 12,

1998.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.12

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–10420 Filed 4–20–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39863; File No. SR–NSCC–

98–1]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Notice of Filing and

Immediate Effectiveness of Proposed

Rule Change Relating to Fees and

Charges

April 14, 1998.

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

Securities Exchange Act of 1934

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

February 12, 1998, 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 from

interested persons on the proposed rule

change.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The proposed rule change reduces

certain fees, lowers certain caps on fees,

and implements one new cap on certain

fees.

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 such statements.2

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

NSCC’s fees are based in part on the

expected volume of transactions

submitted to NSCC for processing.

Because the volume of transactions

submitted to NSCC for processing has

increased over the past few years, NSCC

has determined that it is appropriate to

reduce certain fees, to lower certain

caps on certain fees, and to implement

one new cap. The proposed changes are

as follows:

(1) Trade Comparison Fee

Currently, the trade comparison fee

for each side of each stock, warrant, or

right trade submitted is $.018 per 100

shares with a minimum fee of $.072 and

a maximum fee of $1.35. This rule

change reduces this maximum fee from

$1.35 to $1.08.

(2) Trade Recording Fee

At present, the trade recording fee for

each side of each stock, warrant, or right

item originally compared by other

parties but cleared through NSCC is

$.012 per 100 shares with a minimum

fee of $.048 and a maximum fee of $.90.

This rule change reduces the trade

recording fee of such items to $.008 per

100 shares with a minimum fee of $.032

and a maximum fee of $.48.

(3) Trade Clearance Fees

Current trade clearance fees are as

follows: $.50 per issue received from

NSCC’s continuous net settlement

(‘‘CNS’’) system to satisfy a long valued
Federal Register / Vol. 63, No. 76 /Tuesday, April 21, 1998 / Notices 19781

3For members with ten or less assigned numbers,

this cap is $200 per month, and for members with

more than ten assigned numbers, the cap is $150

for the first ten numbers and $75 for each additional

number.

4The individual fees are $50 for Fund/SERV

membership, $50 for mutual fund commission

settlement membership, and $200 for networking

membership taking into account the reduction

made by this filing.

5 15 U.S.C. 78s(b)(3)(A)(ii).

6 17 CFR 240.19b–(e)(2).

7 17 CFR 200.30–3(A)(12)

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

2Securities Exchange Act Release No. 39563

(January 20, 1998) 63 FR 4336.

3NSCC members used the ‘‘delete of original

trade input’’ instruction to delete any item for

which the comparison process resulted in an

uncompared trade.

position, $.50 per delivery on CNS in

the night processing cycle to cover a

short valued position, and $1.25 per

delivery to CNS in the day processing

cycle to cover a short valued position.

Each of these three fees includes a $.075

charge associated with a CNS delivery

order movement. Under this rule

change, the charge for CNS delivery

order movements will be reflected as a

separate charge of $.06 instead of $.075.

To reflect both the removal of the

delivery order movement component of

these fees and the additional reductions,

the trade clearance fees for these items

are being reduced as follows: $.40 per

issue received from CNS to satisfy a

long valued position, $.40 per delivery

to CNS in the night processing cycle to

cover a short valued position, and $1.00

per delivery to CNS in the day

processing cycle to cover a short valued

position.

(4) Membership Fees

NSCC is making two changes with

respect to its membership fees. First, it

is reducing its networking membership

fee from $250 to $200 per month.

Second, NSCC currently has a cap on

the aggregate dollar amount of

membership fees which it charges for

the following services: trade processing

systems, envelope settlement system,

dividend settlement service, and Fund/

SERV.3 NSCC is removing Fund/SERV

from this cap and is implementing a

new cap of $200 on the aggregate dollar

amount of membership fees that may be

charged to a participant for use of Fund/

SERV, networking, and mutual fund

commission settlement.4

(5) Other Mutual Fund Related Fees

Other mutual fund related fees are

being reduced. The Fund/SERV

transaction fee is being reduced from

$.35 to $.30 per side per order or

transfer request. The networking

account base fees for accounts relating

to funds paying monthly dividends are

being reduced from $.025 to $.020 per

networking subaccount and from $.015

to $.010 for accounts relating to funds

paying dividends less frequently than

monthly. The minimum charge for

mutual fund commission record

submissions is being reduced from $100

to $50.

NSCC intends to give members the

benefit of these fee changes effective as

of January 1, 1998. The necessary

adjustments to accommodate these

reductions will be reflected in bills

transmitted to members in March 1998.

NSCC believes that the proposed rule

change is consistent with the

requirements of Section 17A of the Act,

and the rules and regulations

thereunder because it provides for the

equitable allocation of dues, fees, and

other charges among NSCC’s members.

(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) 5 of the Act and pursuant

to Rule 19b–4(e)(2) 6 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 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, 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 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, N.W.,

Washington, D.C. 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–98–1 and

should be submitted by May 12, 1998.

For the Commission by the Division of

Market Regulation, pursuant to delegated

authority.7

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 98–10419 Filed 4–20–98; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39864; File No. SR–NSCC–

97–14]

Self-Regulatory Organizations;

National Securities Clearing

Corporation; Order Granting Approval

of a Proposed Rule Change to Modify

NSCC’s Rules Regarding its Trade

Comparison Service

April 14, 1998.

On December 9, 1997, the National

Securities Clearing Corporation

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

Exchange Commission (‘‘Commission’’)

the proposed rule change (File No. SR–

NSCC–97–14) pursuant to Section

19(b)(1) of the Securities Exchange Act

of 1934 (‘‘Act’’) 1 to modify NSCC’s

procedures regarding its trade

comparison system for over-the-counter

(‘‘OTC’’) securities. Notice of the

proposal was published in the Federal

Register on January 28, 1998.2 No

comment letters were received. For the

reasons discussed below, the

Commission is granting approval of the

proposed rule change.

I. Description

The rule change modifies NSCC’s

trade comparison service by

discontinuing the ability of members to

submit the following instructions:

‘‘delete of original trade input,’’ 3