37932 Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Notices 

24 15 U.S.C. 78s(b)(3)(A)(iii). 

25 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 26 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5 17 CFR 240.19b–4(f)(4). 

6Capitalized terms not defined herein are defined 

in the Rules, available at http://www.dtcc.com/∼/ 

media/Files/Downloads/legal/rules/nscc_rules.pdf. 

adjustment of transactions. To that end, 

the selection and implementation of a 

TP Provider utilized by all options 

exchanges will further reduce the 

possibility that participants with 

potentially erroneous transactions that 

span multiple options exchanges are 

handled differently on such exchanges. 

Similarly, the proposed ability to 

consider quotations invalid on another 

options exchange if ultimately 

originating from a party to a potentially 

erroneous transaction on the Exchange 

represents a proposal intended to 

further foster cooperation by the options 

exchanges with respect to market 

events. The Exchange understands that 

all other options exchanges either have 

or they intend to file proposals that are 

substantially similar to this proposal. 

The Exchange does not believe that 

the proposed rule change imposes a 

burden on intramarket competition 

because the proposed provisions apply 

to all market participants equally. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 24 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.25

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or 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. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

MRX–2017–16 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–MRX–2017–16. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). 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 Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–MRX– 

2017–16, and should be submitted on or 

before September 5, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–17068 Filed 8–11–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81339; File No. SR–NSCC– 

2017–011] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Make Certain 

Adjustments, Clarifications and 

Corrections to the Fee Provisions for 

Insurance and Retirement Processing 

Services 

August 8, 2017. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 3, 

2017, 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 

by the clearing agency. NSCC filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) 3 of the Act and 

subparagraphs (f)(2) 4 and (f)(4) 5 of Rule 

19b–4 thereunder so that the proposal 

was effective upon filing with the 

Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change would 

make certain adjustments, clarifications 

and corrections to the fee provisions for 

NSCC’s Insurance and Retirement 

Processing Services (‘‘I&RS’’) set forth in 

Addendum A (Fee Structure) 

(‘‘Addendum A’’) of NSCC’s Rules & 

Procedures (‘‘Rules’’), as described 

below.6


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7Note 6 to Section IV.K. of Addendum A, supra 

note 6. 

8Securities Exchange Act Release No. 76787 

(December 29, 2015), 81 FR 283 (January 5, 2016) 

(File No. SR–NSCC–2015–009). 

9Note 6 to Section IV.K. of Addendum A, supra 

note 6. 

10Section IV.K. of Addendum A, supra note 6. 

11Rule 57, supra note 6. 

12Securities Exchange Act Release No. 59285 

(January 23, 2009), 74 FR 5875 (February 2, 2009) 

(File No. SR–NSCC–2008–13) (‘‘2009 Fee Filing’’). 

13Subsection 2.a.(ii), Section IV.K. of Addendum 

A, supra note 6. 

14 2009 Fee Filing, supra note 12. 

15Subsection 2.a.(ii), Section IV.K. of Addendum 

A, supra note 6. NSCC’s Important Notice 

announcing the 2009 fee changes identified the 

intended price for this tier at $1.00 per 1,000 items. 

See NSCC Important Notice, ‘‘2009 Fee Revisions,’’ 

A# 6766, P&S# 6336, dated December 31, 2008, 

available at http://www.dtcc.com/∼/media/Files/ 

pdf/2008/12/31/a6766.pdf. 

16A fee of $1.00 per 1,000 items for processing 

Positions Focused files from 2,000,001 to 4,000,000 

items per month was approved by the NSCC Core 

Services Operations and Planning Committee on 

November 13, 2008. 

17See Securities Exchange Act Release No. 48284 

(August 5, 2003), 68 FR 48430 (August 13, 2003) 

(File No. SR–NSCC–2003–13). 

18See id. The fees for settling NSCC Members 

contained three tiers: (1) 0–1,999 items per month, 

(2) 2,000–3,499 items per month and (3) more than 

3,499 per month. The fees for non-settling NSCC 

Members contained only two tiers: (1) 0–1,999 

items per month, and (2) more than 1,999 items per 

month. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency 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. The 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

NSCC is proposing to make 

adjustments, clarifications and 

corrections to the fee provisions for 

I&RS set forth in Addendum A, as 

described below, in order to (i) align the 

fees charged more closely with the costs 

of providing the associated products 

and services to Members and Limited 

Members of NSCC (collectively, ‘‘NSCC 

Members’’); (ii) allocate those fees 

equitably among NSCC Members; and 

(iii) make the Rules more consistent and 

clear with respect to these fees. 

(i) Proposed Changes to Fees 

NSCC is proposing to make the 

following changes to fees set forth in 

Section IV.K. of Addendum A: 

A. Proposed Change to Fees for Multiple 

Destination Files 

NSCC currently charges NSCC 

Members an additional monthly fee for 

directing NSCC to deliver I&RS files to 

more than two destinations.7 NSCC 

added the additional monthly fees for 

multiple destinations in 2016 to align 

the fees charged with the cost of 

providing products and services to 

NSCC Members with multiple file 

destinations.8 Currently, the Rules state 

that NSCC charges an additional $50 per 

month for delivering files to three to 

four destinations and an additional $100 

per month for delivering files to five or 

more destinations.9 NSCC has 

determined that charging an additional 

$50 monthly fee for NSCC Members that 

send files to five destinations is 

sufficient to allow NSCC to recover 

costs to NSCC of delivering files to such 

multiple destinations. Therefore, NSCC 

is proposing to amend its fee structure 

so that NSCC Members that direct NSCC 

to deliver files to five destinations 

would be charged an additional $50 per 

month rather than an additional $100 

per month. As such, NSCC is proposing 

to change the additional fees charged for 

delivering files to multiple destinations, 

as described in Section IV.K. of 

Addendum A, to charge an additional 

$50 per month for delivering files to 

three to five destinations, and an 

additional $100 per month for 

delivering files to more than five 

destinations. 

B. Proposed Change to Fees for 

Positions for Retirement Plans Files 

NSCC is proposing to add a fee for the 

Positions for Retirement Plans file type 

into the billing tier for the Positions and 

Valuations service (‘‘Positions’’) in 

Section IV.K. of Addendum A.10

Pursuant to Section 5 of Rule 57, NSCC 

Members can send four file types using 

Positions—Positions Full, Positions 

New, Positions for Retirement Plans, 

and Positions Focused.11 In 2009, NSCC 

created two billing tiers for Positions, 

with one fee for Positions Full and 

Positions New, and a reduced fee 

charged for Positions Focused.12 The 

fees charged for processing Positions 

Focused file types are lower because 

these files include less data than other 

Positions file types.13 In 2015, NSCC 

introduced a new file type for 

Positions—Positions for Retirement 

Plans. This file type is a full data file 

type, similar to the Positions Full and 

Positions New file types. 

Therefore, NSCC is now proposing to 

amend Addendum A to add a fee for the 

Positions for Retirement Plans file type 

that is identical to the fee for the 

Positions Full and Positions New file 

types. NSCC believes this proposed 

change would align the fees for 

processing the Positions for Retirement 

Plans file type with the costs of 

delivering this service because the costs 

of processing the Positions for 

Retirement Plans file type are similar to 

the cost of processing the Positions Full 

and Positions New file types. 

C. Proposed Change to Fees for 

Positions Focused 

As stated above, NSCC amended 

Addendum A in the 2009 Fee Filing to 

change the fees to be charged for 

processing the Positions Full, Positions 

New, and Positions Focused file types.14

The 2009 Fee Filing incorrectly 

amended Addendum A to state that 

NSCC would charge $1.50 per 1,000 

items for processing Positions Focused 

files from 2,000,001 to 4,000,000 items 

per month.15 NSCC management had 

previously determined that, in order to 

align the fee charged with the cost of 

providing this service, the fee for 

processing Positions Focused files from 

2,000,001 to 4,000,000 items per month 

should be $1.00 per 1,000 items.16

Therefore, NSCC is proposing to correct 

this error and amend Addendum A to 

provide that NSCC would charge $1.00 

per 1,000 items for processing Positions 

Focused files from 2,000,001 to 

4,000,000 items per month. 

D. Proposed Change to Fees for APP 

Non-Settlement Tiers 

NSCC is proposing to modify the fee 

structure for the Initial Application 

Information feature of I&RS (‘‘APP’’) in 

order to align the fees charged to settling 

NSCC Members with the fees charged to 

non-settling NSCC Members. In 2003, 

NSCC established two categories for the 

fee structure for APP—a category for 

settling NSCC Members and a separate 

category for non-settling NSCC 

Members.17 When the fee structure was 

implemented in 2003, the fees charged 

to settling NSCC Members were higher 

than the fees charged to non-settling 

NSCC Members and the category for 

settling NSCC Members contained three 

tiers while the category for non-settling 

NSCC Members contained two tiers.18 In 

the 2009 Fee Filing, NSCC reduced the 

fees applicable to settling NSCC 

Members for APP resulting in the fees 

in the first two tiers being identical to 

the fees in the tiers for the non-settling 


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19 2009 Fee Filing, supra note 12. 

20Subsection 2.d. Section IV.K. of Addendum A, 

supra note 6 (provides that settling NSCC Members 

that process more than 3,499 items per month in 

APP are charged $0.50 per item compared to $1.00 

per item for processing 2,000 to 3,499 items per 

month). 

21Subsections 2. and 4., Section IV.K. of 

Addendum A, supra note 6. 

22Subsection 3., Section IV.K. of Addendum A of 

the Rules, supra note 6. 

23TIER 6, subsection 3., Section IV.K. of 

Addendum A of the Rules, supra note 6. 

24 15 U.S.C. 78q–1(b)(3)(D). 

25 Id. 

26 Id. 

27 Id. 

28 Id. 

29 Id. 

30See supra, note 16. 

NSCC Members.19 In addition, in the 

2009 Fee Filing, NSCC reduced the fees 

in the third tier for settling NSCC 

Members. The result of these changes is 

that currently, settling NSCC Members 

that process more than 3,499 items a 

month receive a discount per item while 

non-settling NSCC Members do not.20

NSCC believes the discount tier for 

processing more than 3,499 items a 

month was not added in the category for 

non-settling NSCC Members because 

these firms are unlikely to process 

transactions with more than 1,999 items 

per month and a tier for processing 

more items per month above 1,999 was 

unnecessary. Although NSCC believes it 

is unlikely that non-settling NSCC 

Members will process more than 1,999 

items per month, NSCC is proposing to 

remove the separate fee categories for 

settling and non-settling NSCC Members 

in order to provide that the same fees 

apply to both settling NSCC Members 

and non-settling NSCC Members. The 

cost to NSCC for processing APP files 

for settling NSCC Members and nonsettling NSCC Members is the same. 

Therefore, NSCC proposes to amend 

subsection 2.d. of Section IV.K of 

Addendum A to provide non-settling 

NSCC Members with the same discount 

that settling NSCC Members receive if 

they process more than 3,499 items per 

month. 

(ii) Proposed Changes to the 

Organization of Addendum A 

NSCC is also proposing to make the 

following changes to the organization of 

Section IV.K. of Addendum A, as 

described below: 

A. Proposed Change to Location of Fees 

for Producer Management Portal 

NSCC is proposing to revise 

Addendum A, Section IV.K., by deleting 

subsection 4. and moving the fees under 

the heading ‘‘Batch Service Fees’’ in that 

subsection to subsection 2.h.21 These 

fees would be renamed ‘‘Distributor 

Batch Service Fees.’’ These fees are 

charged in connection with use of the 

Producer Management Portal and are 

only charged to NSCC Members that are 

distributors, which include brokerdealers, banks and insurance agencies 

that act as intermediaries for insurance 

companies. The proposed change would 

include these fees with the other fees 

charged for use of the Producer 

Management Portal, so such fees are 

identified in one section, and would 

further clarify that these fees are only 

charged to distributors. This proposed 

change would clarify this section of 

Addendum A, and would not change 

the fees charged for any services or 

products. 

B. Proposed Change to Location of Fees 

Listed Under TIER 6 

NSCC is proposing to revise 

Addendum A, Section IV.K., subsection 

3., by deleting TIER 6, and moving each 

of the fees listed under this TIER into 

TIERS 3 and 5 based on the fees being 

charged.22 As a result of the proposed 

change, each product would be listed 

together with other products for which 

the same fee is being charged under one 

TIER.23 The proposed rule change 

would move fees for ‘‘Values Inquiry’’ 

and ‘‘Policy Administration Inquiry’’ to 

TIER 3 and move fees for ‘‘Policy 

Administration Request,’’ ‘‘Death 

Notification Request,’’ ‘‘Fund Transfer,’’ 

‘‘Withdrawals,’’ and ‘‘Arrangements’’ to 

TIER 5. Each of the fees moved from 

TIER 6 would be identified as being 

subject to the ‘‘In Force Transaction 

Chart,’’ which is currently set forth at 

the end of subsection 3., and would 

continue to apply to these fees. This 

proposed change would clarify this 

subsection of Addendum A, and would 

not change the fees charged for any 

services or products. 

2. Statutory Basis 

Section 17A(b)(3)(D) of the Act 

requires, in part, that the Rules provide 

for the equitable allocation of reasonable 

dues, fees, and other charges among its 

participants.24

The proposed changes to Addendum 

A set forth in item II(A)(1)(i)(A) above 

are consistent with 17A(b)(3)(D) of the 

Act 25 because the proposed fees would 

be equitably allocated among NSCC 

Members based on each NSCC 

Member’s utilization of directing NSCC 

to send files to multiple destinations. In 

addition, NSCC believes that the 

proposed fee changes are reasonable 

because the proposed $50 additional fee 

is less than the $100 additional fee 

currently charged for delivering to five 

destinations, while continuing to allow 

NSCC to recover the costs associated 

with delivering to five destinations. 

Therefore, NSCC believes the proposed 

fee modifications set forth in item 

II(A)(1)(i)(A) above are consistent with 

the requirements of Section 17A(b)(3)(D) 

of the Act.26

The proposed changes to Addendum 

A set forth in items II(A)(1)(i)(B) and (D) 

above are consistent with 17A(b)(3)(D) 

of the Act 27 because the proposed fees 

would be allocated equitably among the 

NSCC Members that subscribe for those 

services based on each NSCC Member’s 

use of such services. In addition, NSCC 

believes that the proposed fees are 

reasonable because they would enable 

NSCC to better align its revenue with 

the costs and expenses required for 

NSCC to provide the services to NSCC 

Members. Specifically, with respect to 

II(A)(1)(i)(B), the costs of processing the 

Positions for Retirement Plans file type 

are similar to the cost of processing 

other full data file types and NSCC has 

determined that charging the same fee 

as is charged for other full data file 

types would enable it to recover its costs 

for processing the Positions for 

Retirement Plans file type. With respect 

to II(A)(1)(i)(D), the cost to NSCC of 

processing over 3,499 items per month 

in APP is the same for settling NSCC 

Members and non-settling NSCC 

Members and therefore the fees for 

settling NSCC Members and non-settling 

NSCC Members for APP should be the 

same. Therefore, by establishing fees 

that align with the cost of delivery of 

these products and services and 

allocating those fees equitably among 

the subscribing NSCC Members, the 

proposed changes to Addendum A set 

forth in items II(A)(1)(i)(B) and (D) are 

consistent with the requirements of 

Section 17A(b)(3)(D) of the Act.28

NSCC believes the proposed fees set 

forth in item II(A)(1)(i)(C) above are also 

consistent with the requirements of 

17A(b)(3)(D) of the Act.29 Specifically, 

the proposed fees would be equitably 

allocated among NSCC Members that 

choose to process the file type for 

Positions Focused. NSCC also believes 

the proposed fees set forth in item 

II(A)(1)(i)(C) above are reasonable 

because the proposed fee for processing 

Position Focused files from 2,000,001 to 

4,000,000 items per month is less than 

the fee currently charged, while 

continuing to allow NSCC to recover the 

costs associated with processing such 

items. In addition, the proposed fee 

changes were previously approved by 

NSCC management,30 and NSCC 

Members were previously notified of the 


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31See supra, note 15. 

32 15 U.S.C. 78q–1(b)(3)(D). 

33 15 U.S.C. 78q–1(b)(3)(F). 

34 Id. 

35 17 CFR 240.17Ad–22(e)(23)(i). 

36 17 CFR 240.17Ad–22(e)(23)(ii). 37 17 CFR 240.17Ad–22(e)(23)(i), (ii). 

fee changes,31 at the time the fee 

changes were originally contemplated 

for 2009. Therefore, NSCC believes the 

proposed fee modifications are 

consistent with the requirements of 

Section 17A(b)(3)(D) of the Act.32

Section 17A(b)(3)(F) of the Act 

requires, in part, that the Rules promote 

the prompt and accurate clearance and 

settlement of securities transactions.33

The proposed changes to Addendum A 

set forth in item II(A)(1)(ii) above would 

enhance NSCC Members’ ability to 

understand the fees associated with the 

I&RS services. Specifically, the 

proposed rule change relating to 

Addendum A described above in item 

II(A)(1)(ii) would clarify the meaning of 

certain provisions of Addendum A 

relating to the fees and enhance clarity 

and consistency in the Rules in this 

regard. As such, the proposed rule 

change would allow NSCC Members to 

have a better understanding of the Rules 

in relation to their I&RS activity, and 

thereby assist in promoting the prompt 

and accurate clearance and settlement of 

securities transactions, consistent with 

the requirements of Section 17A(b)(3)(F) 

of the Act.34

Rule 17Ad–22(e)(23)(i) under the Act 

requires, in part, that NSCC establish, 

implement, maintain and enforce 

written policies and procedures 

reasonably designed to provide for 

publicly disclosing all relevant rules 

and material procedures.35 Rule 17Ad– 

22(e)(23)(ii) under the Act requires, in 

part, that NSCC establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

provide for providing sufficient 

information to enable participants to 

identify and evaluate the risks, fees, and 

other material costs they incur by 

participating in NSCC.36 The proposed 

rule change set forth in item II(A)(1)(ii) 

above would enhance clarity and 

consistency with respect to the fees 

described herein. In this way, the 

proposed rule change would provide for 

the public disclosure of these fees 

through the proposed changes to 

Addendum A. The proposed rule 

change would allow NSCC to further 

provide its participants with sufficient 

information to enable those participants 

to identify and evaluate the fees 

incurred through their participation in 

NSCC. As such, NSCC believes the 

proposed rule change is consistent with 

both Rule 17Ad–22(e)(23)(i) and (ii) 

under the Act.37

(B) Clearing Agency’s Statement on 

Burden on Competition 

NSCC does not believe that the 

proposed changes to Addendum A set 

forth in items II(A)(1)(i)(A), (C) and (D) 

above would have an adverse impact, or 

impose any burden, on competition 

because, in each case, the proposed fee 

changes would be a reduction in fees as 

currently set forth in the Rules that 

would not disproportionally impact any 

NSCC Members. As a reduction to the 

fees currently in the Addendum A for 

these services, the proposed changes 

would not impede any NSCC Members 

from engaging in the services or have an 

adverse impact on any NSCC Members. 

Moreover, the proposed rule changes 

may promote competition because, in 

each case, the proposed fee 

modifications would allow NSCC 

Members to engage in a greater number 

of transactions with lower fee costs than 

they would incur today for the same 

number of transactions. For instance, 

the proposed changes in item 

II(A)(1)(i)(A) above would allow NSCC 

Members that are currently sending to 

three or four destinations to begin to 

send to five destinations without 

incurring a higher fee than if files were 

sent to only three or four destinations 

because, as a result of the proposed rule 

change, the additional fee incurred by 

NSCC Members to send to five 

destinations would be the same as the 

additional fee to send to three or four 

destinations. Similarly, the proposed 

changes in item II(A)(1)(i)(C) above 

could result in NSCC Members that are 

currently sending 500,001 to 2,000,000 

items per month to begin to send 

2,000,001 to 4,000,000 items per month 

in order to take advantage of the 

proposed stated fee of $1.00 per 1,000 

items rather than $1.50 per 1,000 items 

which is the current fee. In addition, the 

proposed change in item II(A)(1)(i)(D) 

above could result in non-settling NSCC 

Members that are currently sending less 

than 3,499 items per month to be more 

likely to send more than 3,499 items per 

month in order to take advantage of the 

proposed stated fee of $0.50 per item 

rather than $1.00 per item which is the 

current fee for non-settling NSCC 

Members. NSCC Members sending data 

to more destinations and sending 

additional data items relating to 

Positions and APP products and 

services would enhance participation in 

the marketplace by providing NSCC 

Members and their counterparties with 

more data. Finally, as discussed above, 

NSCC believes that the proposed fee 

changes are appropriate in light of the 

expenses incurred by NSCC in 

providing its services. 

NSCC believes that the proposed 

changes to Addendum A set forth in 

item II(A)(1)(i)(B), could have an impact 

on competition because NSCC Members 

would need to pay the fees for a full file 

type in order to deliver Positions for 

Retirement Plan file types similar to 

Positions Full and Position New file 

types rather than paying the reduced fee 

that NSCC Members pay to deliver the 

Positions Focused file type. The higher 

fee may make it less likely for some 

NSCC Members to deliver the Position 

for Retirement Plan file type rather than 

the Position Focused file type. NSCC 

believes, however, that any burden on 

competition that would be created by 

the proposed rule change would be 

necessary and appropriate in 

furtherance of the Act. Specifically, the 

proposed rule change is necessary to 

align the fees charged for sending the 

Positions for Retirement Plans file type 

feature with the costs and expenses 

required for NSCC to process that file 

type. As stated above, NSCC believes 

the costs of processing the Positions for 

Retirement Plans file type for NSCC are 

similar to the cost of processing the 

Positions Full and the Positions New 

file types. As such, NSCC believes that 

the fee for processing the Positions Full 

and the Positions for Retirement Plans 

file type should be the same as the fee 

for processing the Positions Full and 

Positions New file types and is 

appropriate given the costs to NSCC of 

delivering the full data file types. 

NSCC does not believe that the 

proposed changes to Addendum A set 

forth in item II(A)(1)(ii) above would 

have any impact on competition 

because such changes are clarifications 

of the Rules which would not affect the 

rights or obligations of NSCC Members. 

Moreover, the proposed changes set 

forth in item II(A)(1)(ii) are revenue 

neutral and would not affect one set of 

NSCC Members in favor of another. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

Written comments relating to the 

proposed rule change have not yet 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 


sradovich on DSK3GMQ082PROD with NOTICES
37936 Federal Register / Vol. 82, No. 155 / Monday, August 14, 2017 / Notices 

38 15 U.S.C 78s(b)(3)(A). 

39 17 CFR 240.19b–4(f)(2). 

40 17 CFR 240.19b–4(f)(4). 

41 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 80777 

(May 25, 2017) (SR–NYSEArca–2017–30) (order 

approving amendments to Commentary .01 and 

Commentary .02 to NYSE Arca Equities Rule 

5.2(j)(3) to provide for the inclusion of cash in an 

index underlying a series of Investment Company 

Units). 

19(b)(3)(A) 38 of the Act and 

subparagraphs (f)(2) 39 and (f)(4) 40 of 

Rule 19b–4 thereunder. At any time 

within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

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. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NSCC–2017–011 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NSCC–2017–011. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). 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 Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of NSCC and on DTCC’s Web site 

(http://dtcc.com/legal/sec-rulefilings.aspx). All comments received 

will be posted without change; the 

Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–NSCC– 

2017–011 and should be submitted on 

or before September 5, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.41

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–17044 Filed 8–11–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81340; File No. SR– 

NYSEAMER–2017–03] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend 

Supplementary Material .01 and .02 to 

NYSE American Rule 5.2E(j)(3) To 

Provide for the Inclusion of Cash in an 

Index Underlying a Series of 

Investment Company Units 

August 8, 2017. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on July 27, 

2017, NYSE American LLC (the 

‘‘Exchange’’ or ‘‘NYSE American’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the self-regulatory 

organization. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend 

Supplementary Material .01 and .02 to 

NYSE American Rule 5.2E(j)(3) to 

provide for the inclusion of cash in an 

index underlying a series of Investment 

Company Units, which amendments 

conform to amendments to NYSE Arca 

Equities Rule 5.2(j)(3) previously 

approved by the Commission. The 

proposed rule change is available on the 

Exchange’s Web site at www.nyse.com, 

at the principal office of the Exchange, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes (1) to amend 

Supplementary Material .01 and .02 to 

NYSE American Rule 5.2E(j)(3) to 

provide for the inclusion of cash in an 

index underlying a series of Investment 

Company Units (‘‘Units’’), which 

amendments conform to amendments to 

NYSE Arca Equities Rule 5.2(j)(3) 

previously approved by the 

Commission.4

Amendments to NYSE American Rule 

5.2E(j)(3) 

NYSE American Rule 5.2E(j)(3) 

permits the trading of Units pursuant to 

unlisted trading privileges (‘‘UTP’’). The 

Exchange proposes to amend 

Commentaries .01 and .02 to NYSE 

American Rule 5.2E(j)(3) to permit 

trading of Units based on an index or 

portfolio that includes cash as a 

component. While Units, like mutual 

funds, will generally hold an amount of 

cash, NYSE American Rule 5.2E(j)(3) 

currently provides that components of 

an index or portfolio underlying a series 

of Units consist of securities—namely, 

US Component Stocks, Non-US 

Component Stocks, Fixed Income 

Securities or a combination thereof. As 

described below, the proposed 

amendments to Supplementary Material 

.01 and .02 to Rule 5.2E(j)(3) would 


sradovich on DSK3GMQ082PROD with NOTICES