Document ID: SEC-2018-1504-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2018-09-27T04:00Z

[Federal Register Volume 83, Number 188 (Thursday, September 27, 2018)]
[Notices]
[Pages 48880-48884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20997]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84259; File No. SR-NSCC-2018-007]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change To Clarify the Rules That Describe the Buy-In Process

September 21, 2018.
    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 September 19, 2018, 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) of 
the Act \3\ and Rule 19b-4(f)(4) thereunder.\4\ 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).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change consists of modifications to the Rules and 
Procedures of NSCC (``Rules'') \5\ in order to enhance the rules and 
procedures that describe the process by which a Member entitled to 
receive securities from the Corporation, where such securities have 
failed to deliver, may submit a notice of its intent to purchase, or 
``buy-in,'' any or all of such securities and the processing of the 
subsequent execution of that buy-in. The proposed changes would not 
change how buy-ins are processed at NSCC, but would clarify and 
simplify the rules that govern this processing, as described below.
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    \5\ Available at http://www.dtcc.com/legal/rules-and-procedures. 
Capitalized terms used herein and not otherwise defined shall have 
the meaning assigned to such terms in the Rules.
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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 certain revisions to Rule 10 (Failure to 
Deliver on Security Balance Orders), Section 7 of Rule 11 (CNS System), 
Section J of Procedure VII (CNS Accounting Operation), and Sections A 
and B of Procedure X (Execution of Buy-Ins) of the Rules, which 
describe the process by which a Member entitled to receive securities 
(such quantity of securities is defined in the Rules as that Member's 
``Long Position''), where such securities have failed to deliver, may 
provide NSCC with notice of its intent to buy-in any or all of its Long 
Position.\6\ These rules also describe the processing of the subsequent 
execution of that buy-in.
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    \6\ Id.
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    First, the proposed changes would update and simplify the Rules by 
removing statements that do not provide important information to 
Members regarding the buy-in processing service, and NSCC believes this 
proposed change would make the Rules clearer and more easily understood 
by Members. For example, these proposed changes would remove 
descriptions of processing that do not occur at NSCC, and descriptions 
of rules that are not enforced by NSCC.
    Second, the proposed changes would revise, clarify and enhance the 
transparency of these rules by, for example, (1) reorganizing the rules 
governing buy-in processing such that they appear in fewer places in 
the Rules, (2) revising certain statements and adding new descriptions 
of buy-in processing to improve the transparency of these rules, and 
(3) correcting and updating the uses of defined terms. NSCC believes 
making these descriptions clearer would enhance Members' understanding 
of their rights and obligations in connection with this service.
    Each of these proposed changes is described below.
(i) Overview of the Buy-In Process
    Under the Rules, a Member with a Long Position (referred to as the 
``originator'') may submit to NSCC a notice of its intention to buy-in 
any or all of its Long Position. Such notice is currently referred in 
the Rules as ``Notice of Intention to Buy-In'' and a ``Buy-In Notice'' 
and must specify the quantity of securities, not exceeding the 
originator's Long Position, it intends to buy-in (such quantity of 
securities is referred to as the ``Buy-In Position''). As described in 
Section J of Procedure VII of the Rules, Buy-In Notices may be either 
(1) submitted directly to NSCC by the originator, and such Buy-In 
Notices are referred to as an ``Original Buy-In Notice,'' or (2) 
submitted directly to NSCC by the originator as a ``Buy-In 
Retransmittal Notice'' after the originator has received notice that is 
has failed to deliver securities away from NSCC. References to Buy-In 
Notices include both Original Buy-In Notices and Buy-In Retransmittal 
Notices.
    The day the Buy-In Notice is submitted to NSCC is referred to as N, 
and N+1 and N+2 refer to the succeeding days. Original Buy-In Notices 
expire on N+2 and Buy-In Retransmittal Notices expire on N+1. The Buy-
In Position is given high priority for allocation in NSCC's Continuous 
Net Settlement (``CNS'') \7\ system through the completion of CNS 
allocations in the day cycle on the day the buy-in expires.
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    \7\ CNS is an on-going accounting system which nets each day's 
settling trades with the prior day's closing positions, producing 
new Short or Long Positions per security issue for each Member. NSCC 
is always the contra side for all positions. The positions are then 
passed against the Member's Designated Depository positions and 
available securities are allocated by book-entry. This allocation of 
securities is accomplished through an evening cycle followed by a 
day cycle. CNS and its operation are described in Rule 11 and 
Procedure VII of the Rules. Supra note 5.
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    If, with respect to Original Buy-In Notices, a Buy-in Position 
remains unfilled after the completion of the CNS allocation in the 
evening cycle on N+1, or shortly after the receipt of a Buy-In 
Retransmittal Notice, NSCC issues CNS Retransmittal Notices to those 
Members with the oldest Short Positions in those securities in an 
amount equal to the originator's Long Position. Such notices specify 
the originator and the total quantity of securities requested in the 
Buy-In Notice. If several Members have Short Positions with the same 
age, all

[[Page 48881]]

such Members are issued CNS Retransmittal Notices, even if the total of 
their Short Position exceeds the Buy-In Position.
    On the expiration of the Buy-In Notice, if the Buy-In Position is 
still not satisfied, either in full or in part, the originator may 
submit to NSCC a Buy-In Order, which notifies NSCC that the originator 
intends to purchase the remaining securities (i.e., execute a buy-in 
for the remaining securities). If a Member does not submit the Buy-In 
Order by the time specified by NSCC, that Member's notice to NSCC of 
its intent to submit a buy-in on a Buy-In Position (referred to as the 
``Buy-In Intent'') is canceled. If a Member does submit the Buy-In 
Order by that time, it may subsequently execute the buy-in and then 
submit to NSCC a Buy-In Execution, notifying NSCC of the position and 
price of the execution. NSCC would then allocate the quantity bought in 
among the Members with Short Positions that have been identified on a 
CNS Retransmittal Notice.
(ii) Rationale for the Proposed Changes
    In connection with a review of its Rules, NSCC identified 
opportunities to improve and update the rules describing buy-in 
processing in order to improve transparency to Members. For example, 
NSCC identified opportunities to reorganize the Rules such that the 
descriptions of buy-in processing occur in fewer places and the Rules 
are less repetitive. NSCC also identified opportunities remove 
statements that describe processing that occurs away from its 
facilities, and does not provide Members with important information 
regarding the processing of buy-ins at NSCC. Overall, NSCC believes 
these proposed changes would simplify the Rules and, thereby, improve 
Members' understanding of their rights and obligations, and NSCC's 
rights and obligations, in connection with the processing of buy-ins.
(iii) Proposed Changes To Update and Simplify the Rules
    NSCC is proposing to update and simplify the Rules that describe 
the processing of buy-ins by, for example, reorganizing the Rules and 
removing repetitive descriptions, removing descriptions of processing 
that occurs away from NSCC, and removing descriptions of discretionary 
rules that does not enforce. NSCC believes that these proposed changes 
would make the rules clearer and more easily understood by Members.
a. Proposed Change To Move All Processing Rules Into the Procedures
    NSCC is proposing to revise and simplify the Rules by moving all 
processing rules out of Section 7 of Rule 11 of the Rules and into 
Section J of Procedure VII of the Rules, and then revising these 
statements to avoid repetition with statements that are already within 
Section J of Procedure VII of the Rules. In connection with this 
proposed change, NSCC would add to Section 7 of Rule 11 of the Rules a 
cross-reference to the rules for buy-in processing set forth in 
Procedure VII and the rules for execution of buy-ins set forth in 
Procedure X of the Rules. NSCC believes that these proposed changes 
would improve the transparency of the Rules by disclosing the 
processing rules in fewer locations in the Rules, and would simplify 
the Rules by removing repetitive statements.
b. Proposed Change To Remove Discretionary Fee for Unexecuted Buy-In 
Notices
    NSCC is proposing to remove from the Rules a discretionary fee that 
NSCC may charge if a Member submits a Buy-In Notice but does not later 
execute that buy-in. Before adopting an automated process, the 
processing of buy-ins by NSCC was largely manual.\8\ This fee was 
intended to off-set the resources required to process a Buy-In Order 
that was later not executed, and to encourage Members to submit a Buy-
In Order only when they intended to later execute that buy-in. NSCC has 
not charged this fee since the automation of the processing of buy-ins, 
over ten years ago. As such, NSCC is proposing to remove this 
discretionary fee from Section 7(e) from Rule 11 of the Rules, in order 
to reflect its practice of not charging this fee.
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    \8\ See Securities Exchange Act Release No. 53032 (December 28, 
2005), 71 FR 1457 (January 9, 2006) (SR-DTC-2005-19), which approved 
the proposal of NSCC's affiliate, The Depository Trust Company, to 
adopt an internet-based facility for the processing of buy-ins 
called SMART/Track for Buy-Ins.
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c. Proposed Change To Remove Discretion To Adjust Timing of Buy-In 
Execution
    NSCC is proposing to revise a statement in Section J of Procedure 
VII that a buy-in may be executed if the Buy-In Position has not been 
satisfied by either a time specified in the Rules, or, due to market 
events, such earlier time as established by NSCC upon five business 
days' notice. NSCC has never exercised its discretion to adjust the 
time when a buy-in may be executed as a result of market events. 
Therefore, the proposed changes would remove this statement regarding 
the possibility that such time would be modified.
d. Proposed Change To Remove Statements That Describe Internal 
Processes
    NSCC is proposing to remove statements in Procedure X of the Rules 
that describe the steps NSCC takes internally to reflect the execution 
of a buy-in, but would retain the statement that such execution would 
be reported to Members through an existing report on the business day 
following the execution. NSCC believes that this proposed change would 
simplify the Rules by removing the description of internal processing 
that does not provide Members with important information regarding the 
processing of buy-ins. NSCC believes that the proposed change would 
continue to provide Members with information that is useful to them 
regarding NSCC's obligation to report executions to Members. By 
simplifying the Rules, NSCC believes that the proposed change would 
make the Rules more transparent with respect to information that is 
important to Members regarding buy-in processing.
e. Proposed Change To Remove Description of Buy-In Processing for 
Balance Orders
    NSCC is proposing to remove Section B of Procedure X of the Rules, 
which describes buy-in processing for transactions in Balance Order 
Securities, and to revise Rule 10 to clarify that such processing 
occurs away from NSCC and pursuant to the rules of the applicable 
marketplace. Currently, Section B of Procedure X of the Rules describes 
the rules that govern a buy-in for transactions in Balance Order 
Securities. However, these rules apply to a process that occurs 
entirely away from NSCC. The rules set forth in Section B of Procedure 
X are intended to mirror Rule 11810 of the Financial Industry 
Regulatory Authority (``FINRA''), which governs the processing of buy-
ins that are not otherwise subject to the rules of a registered 
clearing agency.\9\
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    \9\ See FIRNA Rule 11810 (Buy-In Procedures and Requirements), 
available at http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=9699.
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    NSCC is not involved in the processing of buy-ins for Balance Order 
Securities, which are subject to either FIRNA Rule 11810, the rules of 
a national securities exchange, or the rules of another registered 
clearing agency, as applicable. Therefore, in order to avoid any 
confusion regarding NSCC's involvement in this processing,

[[Page 48882]]

and to avoid providing Members with rules that are available elsewhere 
(i.e., FINRA Rule 11810), NSCC is proposing to remove Section B of 
Procedure X of the Rules. The proposed change would also revise Rule 10 
of the Rules to clarify that these buy-ins are subject to the rules of 
the applicable marketplace, which, NSCC believes, will provide Members 
with clarity regarding where to find the rules that govern these buy-
ins.
(iv) Proposed Changes To Revise, Clarify and Enhance the Rules
    NSCC is proposing to revise and clarify the Rules in order to 
enhance the transparency of the descriptions of buy-in processing. 
These changes would include reorganizing the Rules by including 
subheadings and moving statements regarding the same steps in buy-in 
processing so they appear together. The proposed changes would also 
clarify and simplify statements to more clearly and directly describe 
the rights and obligations of both Members and NSCC in buy-in 
processing. Finally, the proposed changes would correct the use of 
certain defined terms. NSCC believes these proposed changes would 
improve the readability of the Rules, making them more transparent to 
Members and, thereby, improving Members' understanding of the 
processing of buy-ins.
a. Proposed Change To Reorganize Section J.1 of Procedure VII of the 
Rules
    NSCC is proposing to re-organize Section J.1 of Procedure VII of 
the Rules by moving the definitions of terms used within this Section 
to the same location at the beginning of the Section, and then using 
subheadings throughout the Section to more clearly identify the 
different steps in buy-in processing. Such subheadings would appear in 
chronological order and would include, ``Defined Terms,'' ``Buy-In 
Intent,'' ``CNS Allocation Priority and CNS Retransmittal Notices,'' 
and ``Buy-In Execution.'' This proposed change would enhance the 
transparency of the Rules by more clearly identifying for Members the 
defined terms used in this Section, and the different steps of buy-in 
processing.
b. Proposed Change to Descriptions of Processing Buy-Ins for Municipal 
Securities
    NSCC is proposing to amend Section 7 of Rule 11 of the Rules to 
move information related to the processing of buy-ins for positions in 
municipal securities out of a footnote and into the body of this Rule. 
The proposed change would make this statement clearer to Members and 
would improve their understanding of the processing of these buy-ins. 
In connection with this change, NSCC is proposing changes that would 
clarify Section J of Procedure VII of the Rules by creating titles for 
the two existing subheadings. These subtitles would clarify that 
Section J.1 describes rules applicable to buy-ins for positions in 
equity securities and corporate debt securities, and Section J.2 
describes rules applicable to buy-ins for positions in municipal 
securities.
    Also in connection with these changes, NSCC is proposing to revise 
the title of the current Section A of Procedure X of the Rules to 
clarify that the rules in this section are applicable only to the 
processing of buy-ins for positions in equity securities and corporate 
debt securities. NSCC is also proposing to remove from Section A of 
Procedure X of the Rules the description of processing of buy-ins for 
positions in municipal securities, as these descriptions are already 
included in both Section 7 of Rule 11 and Section J.2 of Procedure VII 
of the Rules. NSCC believes that these revisions would provide Members 
with both enhanced transparency with respect to the processing buy-ins 
for positions in municipal securities, and while still simplifying the 
Rules by removing repetitive statements.
c. Proposed Change To Clarify the Method of Delivery of Notices
    NSCC is proposing to revise references in Section J of Procedure 
VII of the Rules to the ``filing'' of notices with NSCC, with the 
``submission'' of such notices to NSCC. This proposed change would not 
alter the meaning of these statements, but would describe the method of 
delivering these notices to NSCC in a way that conforms to similar 
statements in other places in the Rules.
d. Proposed Change To Revise Cut-Off Times in Buy-In Processing
    NSCC is proposing to revise references to the time, on the 
applicable date, after which (1) a buy-in may be executed if the Buy-In 
Position has not been satisfied, as provided for in Section J.1 of 
Procedure VII of the Rules, and (2) Members with the oldest Short 
Positions on the expiration date of a Buy-In Intent would be first held 
liable for the execution of that buy-in, as provided for in the current 
Section A of Procedure X of the Rules. Currently, both of these cut-off 
times are specified in the Rules as 3:00 p.m. on the applicable date. 
NSCC is proposing to change this time to the conclusion of the CNS 
allocation in the day cycle, which generally occurs around 3:00 p.m. 
EST each business day. The current specified time of 3:00 p.m. was 
intended to align with the conclusion of the CNS allocation in the day 
cycle because a Buy-In Position may be satisfied, in whole or in part, 
during this allocation process. Therefore, NSCC believes that the 
proposed change would more clearly specify the event that was intended 
as the cut-off time trigger in both of these circumstances, and would 
avoid any unintended consequences of this cut-off time occurring prior 
to the completion of this CNS allocation.
e. Proposed Change To Clarify Submission of Buy-In Order and Buy-In 
Execution
    NSCC is proposing to add statements to clarify the distinction 
between the Buy-In Order and the subsequent Buy-In Execution notices. 
Currently, Procedure X does not clearly specify that an originator must 
submit a Buy-In Order on the expiration date of a Buy-In Intent, prior 
to submitting a Buy-In Execution later that same day. In order to more 
clearly identify these two, separate notices, and the consequences of 
failing to properly submit either on the expiration date of the Buy-In 
Order, the proposed changes would (1) revise existing statements to 
clarify that the Buy-In Order and the Buy-In Execution are two 
separate, required notifications, (2) relocate the statement that an 
originator that has not submitted a Buy-In Order may not later submit a 
Buy-In Execution and is required to recommence the buy-in process by 
submitting a new Buy-In Intent, and (3) add a parallel statement that 
an originator that has submitted a Buy-In Order but does not later 
execute that buy-in must recommence the buy-in process be submitting a 
new Buy-In Intent. These proposed changes would more clearly identify 
the notifications that are required to be submitted in connection with 
the execution of a buy-in, and the consequences of failing to submit 
either of these notifications. NSCC believes that this proposed change 
would improve the transparency of the Rules regarding Member's 
obligations in connection with this process.
f. Proposed Change To Clarify Rules Regarding Execution of a Buy-In
    NSCC is proposing to clarify in Procedure X the process by which 
buy-ins are executed. This proposed change would make clearer that an 
originator must provide NSCC with the details of the execution after 
the execution is completed to allow NSCC to reflect the positions by 
journal entry. This proposed change would also provide

[[Page 48883]]

Members with notice that NSCC is not responsible for verifying the 
terms of the an executed buy-in that are reported to NSCC by an 
originator, and that any disputes regarding such terms should be 
addressed away from NSCC. Finally, this proposed change would remove a 
note that states a Buy-In Order should contain instructions regarding 
the execution of buy-ins. This information is not required by NSCC in a 
Buy-In Order. NSCC believes that this proposed change would provide 
Members with more transparency regarding their rights and obligations 
with respect to the execution of buy-ins by more clearly describing the 
process.
g. Proposed Change To Revise and Correct Defined Terms
    NSCC is proposing to revise and correct the defined terms used in 
the rules that describe buy-in processing. This proposed change would 
revise the use of the term ``Notice of Intention to Buy-In'' and ``Buy-
In Notice,'' which are currently used interchangeably, with a new 
defined term, ``Buy-In Intent.'' This proposed change would ensure 
consistent use of one defined term to refer to this notice, and would 
use a new term that is both brief and descriptive of the purpose of 
this notice. In connection with this proposed change, NSCC would also 
replace references to the ``Buy-In Notice'' in Sections E.3 and E.4 of 
Procedure VII with ``Buy-In Intent'' and ``Buy-In Intent notices,'' as 
applicable.
    NSCC is also proposing to revise a reference to ``tender offer'' in 
Section J of Procedure VII of the Rules, to refer more generally to 
``voluntary reorganizations.'' The sentence where this term appears 
states that, with respect to securities subject to voluntary 
reorganizations, Members may not submit a Buy-In Intent after the 
expiration of the event. Currently the sentence only refers to the 
expiration date of the tender offer, but was intended to more generally 
include any voluntary reorganization events. NSCC believes that the 
proposed change would clarify the intended meaning of this sentence.
    Finally, NSCC is proposing to correct and update the uses of terms 
that are defined elsewhere in the Rules. For example, the proposed 
changes would use the capitalized, defined terms for Long Position and 
Short Position, when appropriate. In connection with this change, the 
proposed changes would also correct internal cross-references to refer 
to ``Section,'' where the term ``paragraph'' is currently used, and to 
refer to ``Procedure,'' where the term ``section'' is currently used, 
for example. NSCC believes that this proposed change would improve 
Members' ability to understand these Rules.
2. Statutory Basis
    NSCC believes that the proposed changes are consistent with the 
Section 17A(b)(3)(F) of the Act, which requires, in part, that the 
rules of a registered clearing agency be designed to promote the prompt 
and accurate clearance and settlement of securities transactions, for 
the reasons described below.\10\ As described above, the proposed rule 
change is designed to increase transparency of the Rules by 
simplifying, updating and revising the descriptions of the processing 
of buy-ins. The buy-in process promotes the prompt and accurate 
clearance and settlement of securities transactions by providing 
Members with Long Positions with a process that facilitates the 
purchase of securities when delivery of such securities previously 
failed. NSCC believes that the proposed changes to enhance the 
description of this process in the Rules and help Members to more 
readily understand their rights and obligations in connection with the 
use of this service would facilitate the functioning of the buy-in 
process. As such, the proposed changes would promote the prompt and 
accurate clearance and settlement of securities transactions, 
consistent with Section 17A(b)(3)(F) of the Act.\11\
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    \10\ 15 U.S.C. 78q-1(b)(3)(F).
    \11\ Id.
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    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.\12\ As described above, the 
proposed rule change would improve the transparency, clarity and 
accuracy of the Rules such that these provisions of the Rules would 
better disclose all relevant and material aspects of the buy-in 
process. Therefore, NSCC believes the proposed rule changes are 
consistent with Rule 17Ad-22(e)(23)(i).\13\
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    \12\ 17 CFR 240.17Ad-22(e)(23)(i).
    \13\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    NSCC does not believe that the proposed rule changes would have any 
impact, or impose any burden, on competition. The proposed rule changes 
are designed to improve Members' understanding of their rights and 
obligations with respect to the use of the buy-in processing service. 
These proposed changes would be applicable to all Members that utilize 
this service, and would not alter Members' rights or obligations. 
Therefore, NSCC does not believe that the proposed rule changes would 
have any impact on competition.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    NSCC has not solicited or received any written comments relating to 
this proposal. NSCC will notify the Commission of any written comments 
that it receives.

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) of the Act \14\ and paragraph (f) of Rule 19b-4 
thereunder.\15\ 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.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f).
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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 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 [email protected]. Please include 
File Number SR-NSCC-2018-007 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSCC-2018-007. 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 website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent

[[Page 48884]]

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 website 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 website (http://dtcc.com/legal/sec-rule-filings.aspx). All comments received will be posted without 
change. Persons submitting comments are cautioned that we do not redact 
or edit personal identifying information from comment submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-NSCC-2018-007 
and should be submitted on or before October 18, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-20997 Filed 9-26-18; 8:45 am]
BILLING CODE 8011-01-P