[Federal Register Volume 63, Number 18 (Wednesday, January 28, 1998)]
[Notices]
[Pages 4336-4337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1976]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-39563; File No. SR-NSCC-97-14]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of a Proposed Rule Change to Modify 
NSCC's Procedures Regarding its Trade Comparision Service

January 20, 1998.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 9, 1997, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commisssion'') the proposed rule 
change (File No. SR-NSCC-97-14) 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 persons.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change will modify NSCC's procedures regarding 
its trade comparison system for over-the-counter (``OTC'') securities.

II. Self-Regulatory Organizations'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\
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    \2\ The Commission has modified the text of the summaries 
submitted by NSCC.

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[[Page 4337]]

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

    The proposed rule change will modify NSCC's procedures regarding 
its trade comparison service. The proposed rule change will discontinue 
the following instructions: the ``delete of original trade input,''\3\ 
the ``demand withold,''\4\ and the ``demand as of.''\5\ Such 
instructions are used very infrequently by NSCC members due to the 
growth of automated processing systems. Their elimination will result 
in reduced costs to members.
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    \3\ NSCC members use the delete of original trade input to 
delete any item for which the comparison process resulted in an 
uncompared trade.
    \4\ The demand withhold service deletes previously compared OTC 
transactions which have been canceled by mutual agreement of the 
buyer and the seller.
    \5\ OTC trade data submitted by members which is uncompared may 
be resubmitted through the demand as of service.
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    Additionally, the change will eliminate the ability to submit an 
advisory listing after the first day after trade date (``T+1'') for 
original input and as of trades.\6\ This change results from extremely 
limited acceptances of advisories of T+2 and will also reduce costs.
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    \6\ Advisory listings indicate trades which were submitted by 
another party against the member but which did not match any trade 
the member submitted.
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    Under the third change, the supplemental contract lists and the 
added trade contract lists will no longer carry forward totals. The 
supplemental contract lists show all compared trades resulting from 
adjustments submitted on T+1. The added trade contract lists show 
trades that are compared on T+2 and thereafter. NSCC has been advised 
that due to the increasingly automated processing environment, totalled 
information is no longer necessary. This will reduce computer 
processing time and therefore will also diminish production costs. 
These modifications are scheduled to take place in April of 1998.
    NSCC believes that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder since 
it will facilitate the prompt and accurate clearance and settlement of 
securities transactions and, in general, will protect investors and the 
public interest.

(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

    Within thirty-five days of the date of publication of this notice 
in the Federal Register or within such longer period: (i) As the 
Commission may designate up to ninety days of such date if it finds 
such longer period to be appropriate and publishes its reasons for so 
finding; or (ii) as to which NSCC consents, the Commission will:
    (A) By order approve such proposed rule change; or
    (B) Institute proceedings to determine whether the proposed rule 
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing. 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 Room, 450 Fifth Street, N.W., Washington, 
D.C. 20549. Copies of such filing will also be available for inspection 
and copying at the principal office of NSCC. All submissions should 
refer to the file number SR-NSCC-97-14 and should be submitted by 
February 28, 1998.

    For the Commission, by the Division of Market Regulation, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-1976 Filed 1-27-98; 8:45 am]
BILLING CODE 8010-01-M