Document ID: SEC-2013-0829-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Filing of Advance Notice to Institute Supplemental Liquidity Deposits: National Securities Clearing Corp.
Posted Date: 2013-05-01T04:00Z

[Federal Register Volume 78, Number 84 (Wednesday, May 1, 2013)]
[Notices]
[Pages 25496-25500]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-10239]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69451; File No. SR-NSCC-2013-802]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of Advance Notice, as Modified by 
Amendment No. 1, To Institute Supplemental Liquidity Deposits to Its 
Clearing Fund Designed To Increase Liquidity Resources To Meet Its 
Liquidity Needs

April 25, 2013.
    Pursuant to Section 806(e)(1) of the Payment, Clearing, and 
Settlement Supervision Act of 2010 (``Clearing Supervision Act'') \1\ 
and Rule 19b-4(n)(1)(i) \2\ thereunder, notice is hereby given that on 
March 21, 2013, the National Securities Clearing Corporation (``NSCC'') 
filed with the Securities and Exchange Commission (``Commission'') an 
advance notice described in Items I, II and III below, which Items have 
been prepared primarily by NSCC. On April 19, 2013, NSCC filed with the 
Commission Amendment No. 1 to the advance notice.\3\ The Commission is 
publishing this notice to solicit comments on the advance notice from 
interested persons.
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    \1\ 12 U.S.C. 5465(e)(1). Defined terms that are not defined in 
this notice are defined in Exhibit 5 of the advance notice filing, 
available at http://www.sec.gov/rules/sro/nscc.shtml under File No. 
SR-NSCC-2013-802, Additional Materials.
    \2\ 17 CFR 240.19b-4(n)(i).
    \3\ Amendment No. 1 revised NSCC's original advance notice 
filing to include as Exhibit 2 a written comment received by NSCC 
relating to the advance notice proposal, as described in Item II(B) 
below.
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I. Clearing Agency's Statement of the Terms of Substance of the Advance 
Notice

    To enhance its ability to meet its liquidity requirements, NSCC is 
proposing to amend its Rules & Procedures (``Rules'') to provide for a 
supplemental liquidity funding obligation, as described below.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Advance Notice

    In its filing with the Commission, NSCC included statements 
concerning the purpose of and basis for the advance notice and 
discussed any comments it received on the advance notice. 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.\4\
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    \4\ The Commission has modified the text of the summaries 
prepared by NSCC.
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(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Advance Notice

Proposal Overview
    According to NSCC, as a central counterparty (``CCP''), NSCC 
occupies an important role in the securities settlement system by 
interposing itself between counterparties to financial transactions, 
thereby reducing the risk faced by its Members and contributing to 
global financial stability. Further, pursuant to the Clearing 
Supervision Act, NSCC has been designated a systemically important 
financial market utility (``SFMU'') by the Financial Stability 
Oversight Council, obliging NSCC to meet certain risk management 
regulatory standards related to, among other things, maintaining 
adequate financial resources to meet its obligations to its Members in 
the event of the default of the Member or family of affiliated Members 
(``Affiliated Family'') that would generate the largest aggregate 
payment obligation to NSCC in stressed conditions. In this regard and 
to enhance its ability to meet its liquidity requirements, NSCC is 
proposing to amend its Rules to provide for a supplemental liquidity 
funding obligation.
    A substantial proportion of the liquidity needed by NSCC is 
attributable to the exposure presented by those unaffiliated Members 
and Affiliated Families that regularly incur the largest gross 
settlement debits over a settlement cycle during trading activity on 
business days other than periods coinciding with quarterly triple 
options expiration dates (``Regular Activity Periods''), as well as 
during times of increased trading activity that arise around quarterly 
triple options expiration dates (``Options Expiration Activity 
Periods'').
    With the goal of ensuring that NSCC has sufficient liquidity to 
meet its obligations during Regular Activity Periods, as well as during 
Options Expiration Activity Periods, it is appropriate that those 
unaffiliated Members and Affiliated Families provide additional 
liquidity to NSCC. Under proposed Rule 4(A), this will take the form of 
supplemental liquidity deposits to the Clearing Fund (i) in an amount 
based on the largest liquidity need NSCC would have in the event of the 
default of an unaffiliated Member or Affiliated Family during a Regular 
Activity Period (``Regular Activity Supplemental Deposit''), and (ii) 
an additional amount to cover the largest liquidity need NSCC would 
have in the event of the default of an unaffiliated Member or 
Affiliated Family during an Options Expiration Activity Period 
(``Special Activity Supplemental Deposit'') (collectively with Regular 
Activity Supplemental Deposit, ``Supplemental Deposit'').
    The obligation of an unaffiliated Member or the Members of an 
Affiliated Family to make a Regular Activity Supplemental Deposit 
(``Regular Activity Liquidity Obligation'') or a Special Activity 
Supplemental Deposit (``Special Activity Liquidity Obligation'') would 
be imposed on the thirty (30) unaffiliated Members and/or Affiliated 
Families who generate the largest aggregate liquidity needs over a 
settlement cycle that would apply in the event of a closeout (i.e., 
over a period from date of default through the following three (3) 
settlement days), based upon a lookback period. The Regular Activity 
Liquidity Obligation of an unaffiliated Member or the Members of an 
Affiliated Family to make a Regular Activity Supplemental Deposit will 
be reduced by any liquidity such Members or their affiliates may 
provide in the form of commitments under NSCC's committed liquidity 
facility (``Credit Facility'').
    The calculations for both the Regular Activity Liquidity Obligation 
and the Special Activity Liquidity Obligation are designed so that NSCC 
has adequate liquidity resources to enable it to settle transactions, 
notwithstanding the default of an unaffiliated Member and/or Affiliated 
Family during Regular Activity Periods, as well as during Options 
Expiration Activity Periods. The Liquidity Obligations imposed on 
Affiliated Families would be allocated among the Family Members in 
proportion to the liquidity risk (or peak exposure) they present to 
NSCC.
Regulatory Background
    As both a CCP and a designated SFMU, NSCC adheres to strict risk 
management processes that are regularly reviewed against applicable 
regulatory and industry standards. This includes

[[Page 25497]]

the securities laws and rulemaking promulgated by the Commission, such 
as Rule 17Ad-22(b)(3), which requires registered clearing agencies that 
perform CCP services to establish, implement, maintain and enforce 
written policies and procedures reasonably designed to maintain 
sufficient financial resources to withstand, at a minimum, a default by 
the participant (defined in Rule 17Ad-22(a)(3) to include a participant 
family) to which it has the largest exposure.
    NSCC is also mindful of the standards set forth in the Principles 
for Financial Market Infrastructures (``PFMI'') of the Committee on 
Payment and Settlement Systems and the Technical Committee of the 
International Organization of Securities Commissions. Key Consideration 
4 of PFMI Principle 7, addressing liquidity risk, provides that a CCP 
should maintain sufficient liquidity resources to meet its payment 
obligations under a wide range of stress scenarios including the 
default of the participant and its affiliates that would generate the 
largest aggregate payment obligation to the CCP.
    NSCC believes the proposed rule change should assist NSCC in 
securing adequate liquidity resources to meet its settlement 
obligations during both Regular Activity Periods and Options Expiration 
Activity Periods, notwithstanding the default of one of its 
unaffiliated Members and/or Affiliated Families that pose the largest 
aggregate liquidity need over the four day settlement cycle.
Supplemental Liquidity Providers
    Every business day NSCC measures the liquidity obligations of its 
unaffiliated Members and Affiliated Families by taking the sum of their 
purchase obligations on that day in securities that are eligible for 
processing in NSCC's Continuous Net Settlement (``CNS'') system and for 
the following three (3) settlement days (which equates to the period 
from the date of default through the remaining settlement cycle). NSCC 
then takes into account certain adjustments, assumptions and offsets, 
and assumes the occurrence of certain stressed conditions.
    The stressed market conditions NSCC assumes in this calculation 
include, but are not limited to, (i) The simultaneous default, without 
prior warning, of all Members of the Affiliated Family with the largest 
aggregate four (4) day settlement obligations; (ii) that on the day of 
such default, the Members of such Affiliated Family are trading at peak 
historical trading levels and no market participants curtail their 
activity with any Members of the Family; and (iii) leading up to or 
after the default, there is no increased volatility in the market that 
would result in a significant increase in Clearing Fund requirements, 
mark-to-market collections, or other risk-based premiums that would 
have the result of increasing NSCC's liquidity resources. NSCC believes 
that these conditions simulate the impact of significant credit risk 
and market risk stresses on NSCC's liquidity need across both Regular 
Activity Periods and Options Expiration Activity Periods.
    NSCC then identifies the largest Member liquidity need on each day 
and determines if the available liquidity resources, consisting of the 
aggregate Required Deposits, any Supplemental Deposits, and any Prefund 
Deposits in the Clearing Fund on the day the liquidity need was 
observed, are adequate to cover that liquidity need, or if there is a 
calculated liquidity shortfall under the assumed stressed market 
conditions described above.
    The Regular Activity Supplemental Deposits will be calculated to 
address those daily liquidity shortfalls that fall on any business day 
included in a Regular Activity Period (``Regular Activity Supplemental 
Liquidity Need''), and the Special Activity Supplemental Deposits will 
be calculated to address those additional daily liquidity shortfalls 
that fall on any business day included in an Options Expiration 
Activity Period (``Special Activity Supplemental Liquidity Need'').
Regular Activity Supplemental Deposits
    Under this proposal, every six (6) months, NSCC will determine (i) 
its largest Regular Activity Supplemental Liquidity Need (``Regular 
Activity Peak Liquidity Need'') over the preceding twelve (12) month 
period and (ii) those unaffiliated Members and Affiliated Families that 
presented the largest aggregate liquidity exposures to NSCC over the 
preceding six-month period. NSCC will then rank the aggregate liquidity 
exposures presented by the unaffiliated Members and/or Affiliated 
Families (``Regular Activity Peak Liquidity Exposures'') during the 
lookback period to determine which thirty (30) such unaffiliated 
Members and Affiliated Families presented the largest respective 
Regular Activity Peak Liquidity Exposures within the lookback period. 
NSCC's Regular Activity Peak Liquidity Need will then be allocated to 
these thirty (30) unaffiliated Members and Affiliated Families 
(``Regular Activity Liquidity Providers''), in proportion to the 
Regular Activity Peak Liquidity Exposures they presented to NSCC during 
the lookback period.
    The first of these semi-annual calculations of the Regular Activity 
Liquidity Obligations will be made to coincide with NSCC's annual 
renewal of the Credit Facility each year (``Regular Activity First 
Tranche Liquidity Obligations'') and the second calculation each year 
will be made six (6) months thereafter (``Regular Activity Second 
Tranche Liquidity Obligations'').
Special Activity Supplemental Deposits
    Special Activity Supplemental Deposits are deposits made in 
addition to Regular Activity Supplemental Deposits, designed to cover 
the additional liquidity exposure that occurs over an Options 
Expiration Activity Period. Each calendar quarter, on a day that is no 
later than the fifth business day preceding any Options Expiration 
Activity Period, NSCC will also determine (i) its largest Special 
Activity Supplemental Liquidity Need (``Special Activity Peak Liquidity 
Need'') over the preceding twenty-four (24) months (i.e., the eight 
prior Options Expiration Activity Periods, or a longer lookback period 
as determined by NSCC) and (ii) those unaffiliated Members and 
Affiliated Families that presented the largest aggregate Special 
Activity liquidity exposures to NSCC over the same period. NSCC will 
then rank the aggregate Special Activity liquidity exposures presented 
by such unaffiliated Members and/or Affiliated Families (referred to as 
their respective ``Special Activity Peak Liquidity Exposures'') during 
the lookback period to determine which thirty (30) such unaffiliated 
Members and Affiliated Families presented the largest respective 
Special Activity Peak Liquidity Exposures within the lookback period. 
NSCC's Special Activity Supplemental Peak Need will then be allocated 
to these thirty (30) Members and Affiliated Families (``Special 
Activity Liquidity Providers''), in proportion to the Special Activity 
Peak Liquidity Exposures they presented to NSCC during the lookback 
period.
Interim Adjustments and Calls
    With the goal of ensuring that NSCC's liquidity resources remain 
adequate between the specified calculation dates, if either current 
liquidity needs increase significantly over those liquidity needs used 
for the regular calculations (or Special Activity Calculations), or the 
amount of liquidity resources is significantly reduced, the proposal 
permits NSCC to make interim recalibrations and liquidity calls: If

[[Page 25498]]

between the semi-annual calculations of the Regular Activity Liquidity 
Obligations, the aggregate amount of Regular Activity Supplemental 
Deposits decreases by an amount that exceeds a threshold as determined 
by NSCC (whether as a result of the retirement of Members, a cease to 
act, or otherwise), then NSCC will recalculate its Regular Activity 
Peak Liquidity Need and allocate it among the unaffiliated Members and 
Affiliated Families that then comprise the applicable thirty (30) 
largest Regular Activity Liquidity Providers, in the same manner such 
calculations and allocations would be made at each semi-annual 
calculation of Regular Activity Liquidity Obligations.\5\
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    \5\ NSCC plans to use an interim date calculation as the first 
calculation under the proposed rule, should it become effective on a 
date after the effective date of the 2013 renewal of its Credit 
Facility.
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    Conversely, if on any business day between regular semi-annual 
calculation dates NSCC observes an increase in its Regular Activity 
Liquidity Needs that exceeds a predetermined threshold amount, or 
between the dates on which it calculates Special Activity Liquidity 
Obligations it observes an increase in its Special Activity Liquidity 
Needs that exceeds a predetermined threshold amount, NSCC shall be 
entitled to call for an additional deposit from the Member whose 
increase in activity levels caused (or was the primary cause of) such 
increased liquidity need (``Liquidity Call''). Liquidity Call amounts 
will be treated as a part of that Member's Regular Activity 
Supplemental Deposit or Special Activity Supplemental Deposit, as 
applicable.
Operation of the Funding Obligation
    Each Regular Activity Liquidity Provider will be obligated to 
contribute to the Clearing Fund, no later than five (5) business days 
following the effective date of the renewal of the Credit Facility, the 
amount of its Regular Activity Liquidity Obligation, reduced (i) dollar 
for dollar by amounts committed to the Credit Facility by that Regular 
Activity Liquidity Provider or its affiliates, and (ii) ratably (among 
all Regular Activity Liquidity Providers) by amounts committed to the 
Credit Facility by the lenders party thereto which are not Members or 
their affiliates.
    If the amount of the Regular Activity Second Tranche Liquidity 
Obligation of an unaffiliated Member or Affiliated Family exceeds its 
Regular Activity First Tranche Liquidity Obligation (including because 
the unaffiliated Member or Affiliated Family had no Regular Activity 
First Tranche Liquidity Obligation), such Regular Activity Liquidity 
Provider will be obligated to contribute its calculated amount within 
three (3) business days following the final notice of such amount. If 
the Regular Activity Second Tranche Liquidity Obligation of an 
unaffiliated Member or Affiliated Family is less than its Regular 
Activity First Tranche Liquidity Obligation, then it shall be entitled 
to a refund of the amount of the difference, provided, that nothing 
shall reduce or in any way affect any commitment or other obligation of 
any Member or its affiliate under the Credit Facility.
    Promptly after calculation of the Special Activity Liquidity 
Obligations, NSCC will inform Special Activity Liquidity Providers of 
their Special Activity Liquidity Obligations, and those Special 
Activity Liquidity Providers must make their Special Activity 
Supplemental Deposits to the Clearing Fund in cash no later than the 
close of business on the second business day preceding the applicable 
Options Expiration Activity Period (i.e., generally the Wednesday 
before the options expiration date).
    However, if a Special Activity Liquidity Provider anticipates that 
its Special Activity Peak Liquidity Exposure at any time during an 
Options Expiration Activity Period will be greater than the amount 
calculated by NSCC, it may, no later than the first business day of 
that Options Expiration Activity Period, make an additional cash 
deposit to the Clearing Fund that is in excess of its Required Deposit 
and is designated as a ``Special Activity Prefund Deposit.'' Members 
may also, at their discretion, deposit to the Clearing Fund amounts in 
excess of their Required Deposit that are designated ``Regular Activity 
Prefund Deposits.'' Because Prefund Deposits are included in 
calculating available liquidity resources, they thus reduce NSCC's 
Supplemental Liquidity Needs, as well as the depositing Member's 
Regular Activity (or Special Activity) Peak Liquidity Exposure.
    As noted above under ``Interim Adjustments and Calls,'' to the 
extent that NSCC observes a peak shortfall that breaches predetermined 
thresholds at any time throughout the year, the amount of the shortfall 
will be allocated solely to the Member responsible for the activity 
that caused the shortfall. The liquidity called as a result of that 
shortfall will be held until the next applicable reset period. This is 
intended to incentivize Members to make Prefund Deposits to avoid 
Liquidity Calls, since Prefund Deposits are refunded after the period 
of activity for which they were made, while Liquidity Calls are 
retained until the next regular calculation of the applicable 
supplemental deposit.
Treatment and Use of the Supplemental Deposits
    All Regular Activity Supplemental Deposits (other than Regular 
Activity Prefund Deposits), as adjusted semi-annually, shall remain on 
deposit in the Clearing Fund, and may not be withdrawn by the 
applicable Member until five (5) business days after the next following 
maturity date of the Credit Facility (generally, for a period of 364 
days). Regular Activity Prefund Deposits shall remain on deposit in the 
Clearing Fund and may not be withdrawn by the applicable Member until 
seven (7) days after they are deposited. All Special Activity 
Supplemental Deposits (including Special Activity Prefund Deposits) may 
be refunded to the Special Activity Liquidity Providers seven (7) 
business days after the end of the applicable Options Expiration 
Activity Period.
    Any amounts deposited in response to a Liquidity Call for an 
additional Regular Activity Supplemental Deposit must remain in the 
Clearing Fund until the next semi-annual calculations of the Regular 
Activity Liquidity Obligations, and any amounts deposited in response 
to a Liquidity Call for an additional Special Activity Supplemental 
Deposit must remain in the Clearing Fund until two (2) business days 
preceding the next Options Expiration Activity Period.
    A Member's Supplemental Deposit will be made in addition to its 
Required Deposit to the Clearing Fund, and any other deposit of any 
such Member to the Clearing Fund.
    A Member's Supplemental Deposit will be considered part of that 
Member's actual deposit to the Clearing Fund, and, as such, may be used 
to satisfy obligations of that Member to NSCC, in the same manner as 
provided in Section 3 of Rule 4. Therefore, if the Member who 
contributed the Supplemental Deposit defaults, NSCC will be permitted 
to use its entire actual deposit, which will include the amount of its 
Supplemental Deposit, to satisfy any loss resulting from closing out 
that Member's open positions.
    A Member's Supplemental Deposit will not, however, constitute part 
of its Required Deposit under NSCC's Rule 4, and, as such, will not be 
used, pursuant to Section 4 of Rule 4, to satisfy the obligations of 
any other Member of NSCC that has defaulted in the performance of its 
obligations to NSCC. A Member's Supplemental Deposit, therefore, will 
not be used in calculating

[[Page 25499]]

any pro rata charge (i.e., loss assessment) due from that Member in the 
event of the default of another Member under Rule 4. Supplemental 
Deposits will also not be subject to the provisions of Section 6 of 
Rule 4 when a Member ceases to be a participant.
    Pending any permitted use described in NSCC's Rules, the aggregate 
of all Supplemental Deposits on deposit at NSCC may be invested by NSCC 
as permitted pursuant to the investment policy adopted by NSCC and as 
in effect from time to time, and in the same manner the Clearing Fund 
is invested pursuant to such investment policy. Any interest earned on 
investment of a Supplemental Deposit, as a part of a Member's actual 
deposit, will be payable at the rate that NSCC earns on the investment 
of such funds, credited monthly and paid on demand.
Implementation Timeframe
    Pending Commission approval, Members will be advised of the 
implementation date of this proposal through issuance of an NSCC 
Important Notice. Members will be provided not less than ten (10) days' 
notice of the first date on which Supplemental Deposits will be 
payable.
Proposed Rule Changes
    NSCC proposes to amend its Rules to create a new Rule 4A to reflect 
the changes as described above. For both the Regular Activity 
Supplemental Deposits and the Special Activity Supplemental Deposits, 
the new Rule 4A will provide: (i) A general description of the relevant 
Supplemental Deposit, (ii) a provision describing the calculation and 
operation of the funding obligation, and (iii) a description of the 
treatment and permitted uses of the Supplemental Deposit by NSCC. NSCC 
believes that this proposed rule change contributes to NSCC's goal of 
assuring that NSCC has adequate liquidity resources to meet its 
settlement obligations during both Regular Activity Periods and Options 
Expiration Activity Periods, notwithstanding the default of its 
unaffiliated Members and/or Affiliated Families that pose the largest 
aggregate liquidity exposure over the relevant settlement cycle. As 
such, NSCC believes that the proposal is consistent with Rule 17Ad-
22(b)(3), as well as with Principle 7 of the PMFI.

(B) Clearing Agency's Statement on Comments on the Advance Notice 
Received From Members, Participants, or Others

    On March 19, 2013, National Financial Services, LLC submitted 
written comments relating to the proposed rule change. NSCC will 
respond to this comment and all future comments received at a later 
date, as appropriate.

(C) Advance Notices Filed Pursuant to Section 806(e) of the Payment, 
Clearing and Settlement Supervision Act

Description of Change
    NSCC is proposing to amend its Rules in order to provide for 
supplemental liquidity deposits to NSCC's Clearing Fund designed to 
ensure that NSCC has adequate liquidity resources to meet its liquidity 
needs. The proposed change is described in detail above.
Anticipated Effect on and Management of Risk
    As described above, NSCC believes that the proposed change to add a 
Supplemental Deposit, which NSCC believes is calculated so that NSCC 
has adequate liquidity resources to enable it to settle transactions 
during Regular Activity Periods and Options Expiration Activity Periods 
when NSCC's liquidity need may increase, notwithstanding the default of 
the unaffiliated Member or Affiliated Family that would generate the 
largest aggregate liquidity need for NSCC over a four day settlement 
cycle in stressed market conditions, will enhance NSCC's ability to 
meet certain risk management standards, such as Rule 17Ad-22(b)(3) and 
Principle 7 of the PMFI, described above.
    By calculating unaffiliated Member's or Affiliated Family's 
Supplemental Deposit funding obligation in proportion to the liquidity 
needs that such entities present to NSCC, NSCC believes that the 
proposed rule change will ensure that NSCC's Members fairly and 
equitably contribute to NSCC's liquidity resources for settlement, and 
also contribute to the goal of financial stability in the event of 
Member default.

III. Date of Effectiveness of the Advance Notice and Timing for 
Commission Action

    The clearing agency may implement the proposed change pursuant to 
Section 806(e)(1)(G) of the Clearing Supervision Act \6\ if it has not 
received an objection to the proposed change within 60 days of the 
later of (i) the date that the Commission received the advance notice 
or (ii) the date the Commission receives any further information it 
requested for consideration of the notice. The clearing agency shall 
not implement the proposed change if the Commission has any objection 
to the proposed change.
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    \6\ 12 U.S.C. 5465(e)(1)(G).
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    The Commission may extend the period for review by an additional 60 
days if the proposed change raises novel or complex issues, subject to 
the Commission providing the clearing agency with prompt written notice 
of the extension. A proposed change may be implemented in less than 60 
days from the date of receipt of the advance notice, or the date the 
Commission receives any further information it requested, if the 
Commission notifies the clearing agency in writing that it does not 
object to the proposed change and authorizes the clearing agency to 
implement the proposed change on an earlier date, subject to any 
conditions imposed by the Commission. The clearing agency shall post 
notice on its Web site of proposed changes that are implemented.
    The proposal shall not take effect until all regulatory actions 
required with respect to the proposal are completed.\7\
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    \7\ NSCC also filed the proposals contained in this advance 
notice as a proposed rule change under Section 19(b)(1) of the 
Exchange Act and Rule 19b-4 thereunder. 15 U.S.C. 78s(b)(1); 17 CFR 
240.19b-4. Pursuant to Section 19(b)(2) of the Exchange Act, within 
45 days of the date of publication of the proposed rule change in 
the Federal Register or within such longer period up to 90 days if 
the Commission designates or the self-regulatory organization 
consents the Commission will either: (i) by order approve or 
disapprove the proposed rule change or (ii) institute proceedings to 
determine whether the proposed rule change should be disapproved. 17 
U.S.C. 78s(b)(2)(A). See Release No. 34-69313 (Apr. 4, 2013), 78 FR 
21487 (Apr. 10, 2013).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the advance 
notice is consistent with the Clearing Supervision 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 No. SR-NSCC-2013-802 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File No. SR-NSCC-2013-802. This file 
number

[[Page 25500]]

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 advance notice that are filed with the 
Commission, and all written communications relating to the advance 
notice 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 filings also will be available for inspection 
and copying at the principal office of NSCC and on NSCC's Web site at 
http://dtcc.com/downloads/legal/rule_filings/2013/nscc/SR-NSCC-2013-802.pdf. 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 No. SR-NSCC-
2013-802 and should be submitted on or before May 22, 2013.

    By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-10239 Filed 4-30-13; 8:45 am]
BILLING CODE 8011-01-P