29192 Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Notices

17 17 CFR 200.30–3(a)(12).

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

2A copy of NSCC’s proposed rule change is

available at the Commission’s Public Reference

Section or through NSCC.

3The Commission has modified the text of the

summaries prepared by NSCC.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.17

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–13328 Filed 5–25–01; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

(Release No. 34–44330; File No. SR–NSCC–

2001–08)

Self-Regulatory Organizations; The

National Securities Clearing

Corporation; Notice of Filing of

Proposed Rule Change Relating to

Processing Commission Payments

May 21, 2001.

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

Securities Exchange Act of 1934

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

April 27, 2001, 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.2 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 amends the

process by which commissions are paid

to non-clearing 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

As part of NSCC’s ongoing efforts to

increase processing efficiencies, NSCC

has decided to modify its rules to

further standardize and automate the

processing of commission payments to

non-clearing members.

In accordance with NSCC Rule 16,

NSCC’s Commission Bill Service

currently permits non-clearing members

entitled to a credit to receive their

monthly commission bill payments

either electronically by Automated

Clearing House (‘‘ACH’’) wire transfer or

manually by check. At present, slightly

less than 50% of NSCC’s approximate

350 non-clearing members physically

receive their commission bill payments

by check. Such manual distributions are

made on the floors of the New York

Stock Exchange (‘‘NYSE’’) and the

American Stock Exchange (‘‘AMEX’’).

The proposed rule change will require

all non-clearing members to execute

appropriate ACH documentation in

order to receive their credit payments.

In the event a non-clearing member

does not pay the amount it owes to

NSCC, the rule is being changed to

explicitly permit NSCC to set-off any

future commission bill credits to which

it is entitled.

Subject to SEC approval, NSCC will

implement the proposed rule changes

on July 13, 2001. If a non-clearing

member has not executed the

appropriate ACH wire transfer

documentation such member will not

receive any credit payments until it

does.

The proposed rule change will

facilitate the prompt and accurate

payment of commission bill

transactions. The proposed rule change

is therefore consistent with Section 17A

of the Act and the rules and regulations

thereunder.

(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

NSCC has worked with and received

the support of the NYSE and the AMEX

with respect to these proposed changes.

No written comments relating to the

proposed rule change have been

solicited or received. NSCC will notify

the Commission of any written

comments it receives.

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 the self-regulatory

organization 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,

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–2001–08 and

should be submitted by June 19, 2001.

For the Commission, by the Division of

Market Regulation, pursuant to delegated

authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 01–13326 Filed 5–25–01; 8:45 am]

BILLING CODE 8010–01–M