[Federal Register Volume 61, Number 116 (Friday, June 14, 1996)]
[Notices]
[Pages 30274-30275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15179]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-37293; File No. SR-NSCC-96-12]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change Revising Service Fees

June 10, 1996.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on April 23, 1996, 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 
persons.
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    \1\ 15 U.S.C. 78s(b)(1) (1988).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to revise NSCC's fee 
schedule.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In it 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. Set forth in sections (A), (B), and (C) below, are the 
most significant aspects of such statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of this rule change is to reduce five existing service 
fees. The revisions to the fee schedule are being made as a result of 
increased trading volumes and the related reduction in costs with 
respect to these services. Fees relating to equity trade recording, 
certain clearance services, Automated Customer Account Transfer 
Service/Transfer Initiation Form submissions, Networking accounts, and 
Fund/Serv transactions are being reduced.\3\ The new fees will be 
effective as of May 1, 1996.
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    \3\ The exact changes to NSCC's fee schedule are attached as 
Exhibit A.
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    NSCC believes the proposed rule change is consistent with the 
requirements of Section 17A(b)(3)(D) of the Act,\4\ and the rules and 
regulations thereunder because it provides for the equitable allocation 
of dues, fees, and other charges among NSCC's participants.
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    \4\ 15 U.S.C. 78q-1(b)(3)(D) (1988).
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(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) of the Act \5\ and pursuant to Rule 19b-4(e)(2) \6\ 
promulgated thereunder because the proposal 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A)(ii) (1988).
    \6\ 17 CFR 240.19b-4(e)(2) (1995).
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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

[[Page 30275]]

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 that are filed with 
Commission, and all written communications relating to the propose rule 
change between the Commission and any person, other than those than may 
be withheld from the public in accordance with 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 the NSCC. All submissions should refer to 
file number SR-NSCC-96-12 and should be submitted by July 5, 1996.

    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) (1995).
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Margaret H. McFarland,
Deputy Secretary.

Exhibit A

    Italicized text indicates additions.
    [Bracketed] text indicates deletions.
    Modify Addendum A to NSCC's Rules and Procedures as follows:

Fee Structure

* * * * *
    I. TRADE COMPARISON AND RECORDING SERVICE FEES--represents the 
fees to enter and correct original trade data.
* * * * *
    C. Trade recording fees will be charged as follows on those 
items originally compared by other parties, but cleared through the 
Corporation: \2\
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    \2\ Trade Recording Fees will be charged for all OCS and IDC 
input except for sides originally submitted correctly to the 
Corporation's comparison system.
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    1. Each side of each stock, warrant or right item entered for 
settlement, but not compared by the Corporation--[$.015] $.012 per 
100 shares, with a minimum fee of [$.06] $.048 and a maximum fee of 
[$1.125] $.90 being applicable.
* * * * *
    II. TRADE CLEARANCE FEES--represents the fees for netting, 
issuance of instructions to receive or deliver, effecting book-entry 
deliveries, and related activity.
* * * * *
    F. Designated valued deliveries \4\ (transaction processing) 
entered into the clearance system through special representative 
procedures--[$.15] $.10 per side.
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    \4\ A designated valued delivery is an instruction from a 
Special Representative to CNS to transfer a valued position from one 
participant to a non-participant through a clearing interface.
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* * * * *
    IV. OTHER SERVICE FEES.
* * * * *
    M. Automated Customer Account Transfer Service.
    1. Transfer Initiation Form--[$1.50] $1.00 per submission.
* * * * *
    N. Fund/Serv--[$.40] $.35 per side per order.
    O. NETWORKING.
* * * * *
    2. Monthly Account Base Fee:
    a. For accounts with Funds paying dividends monthly--[$.035] 
$.025 per NETWORKING sub account.
    b. For accounts with Funds paying dividends less frequently than 
monthly--[$.023] $.015 per NETWORKING subaccount.
* * * * *
[FR Doc. 96-15179 Filed 6-13-96; 8:45 am]
BILLING CODE 8010-01-M