Document ID: SEC-2020-0163-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2020-02-05T05:00Z

[Federal Register Volume 85, Number 24 (Wednesday, February 5, 2020)]
[Notices]
[Pages 6655-6659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02185]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88092; File No. SR-NSCC-2020-001]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change To Enhance National Securities Clearing Corporation's 
Automated Customer Account Transfer Service (ACATS) Transfer Processes 
and Make Certain Clarifications in Rule 50

January 30, 2020.
    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 January 24, 2020, National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule

[[Page 6656]]

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 amendments to NSCC's Rules & 
Procedures (``Rules'') in order to (i) make proposed enhancements to 
NSCC's Automated Customer Account Transfer Service (``ACATS'') transfer 
processes relating to acceleration, Reclaims, Residual Credits and 
Partial Accounts and (ii) make certain clarifications to the Rules, as 
described in greater detail below.\5\
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    \5\ Capitalized terms not defined herein are defined in the 
Rules, available at http://dtcc.com/~/media/Files/Downloads/legal/
rules/nscc_rules.pdf.
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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
    The proposed rule change consists of modifications to NSCC's Rules 
in order to (i) make proposed enhancements to ACATS transfer processes 
relating to acceleration, Reclaims, Residual Credits and Partial 
Accounts and (ii) make certain clarifications to the Rules, as 
described in greater detail below.
(a) Background--ACATS
    ACATS is a non-guaranteed service that enables Members to effect 
automated transfers of customer accounts among themselves.\6\ Pursuant 
to Rule 50, an NSCC Member to whom a customer's full account will be 
transferred (the ``Receiving Member'') will initiate the transfer by 
submitting a transfer initiation request to NSCC, which contains the 
customer detail information that the NSCC Member who currently has the 
account (the ``Delivering Member'') requires to transfer the account. 
Delivering Members that have not rejected the account transfer request 
or requested corrections to the request within the allotted time must 
submit to NSCC certain detailed customer account asset data.
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    \6\ ACATS complements Financial Industry Regulatory Authority 
(``FINRA'') Rule 11870 (``FINRA Rule 11870'') regarding customer 
account transfers, which requires FINRA members to use automated 
clearing agency customer account transfer services and to effect 
customer account transfers within specified time frames. See FINRA 
Rule 11870, available at https://www.finra.org/rules-guidance/rulebooks/finra-rules/11870.
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    Generally, under current practice, a full account transfer through 
ACATS completes in five business days or, if ``accelerated'', four 
business days, as follows:

 Day 1--Receiving Member sends request for transfer of a 
customer account \7\
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    \7\ See Section 2 of Rule 50, supra note 5.
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 Day 2--Delivering Member submits customer account asset data 
list to NSCC \8\
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    \8\ See Section 5 of Rule 50, supra note 5.
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 Day 3--Receiving Member has one business day to review the 
customer account asset data list \9\
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    \9\ See Section 8 of Rule 50, supra note 5.
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 Day 4--NSCC prepares to settle \10\
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    \10\ See Section 9 of Rule 50, supra note 5.
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 Day 5--NSCC settles the transfer through ACATS and generates 
reports\11\
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    \11\ See Sections 9(ii) and 10 of Rule 50, supra note 5.

    Except as noted with respect to the Receiving Member's review day 
on Day 3 above, which specifies one business day to review, the five-
day timing set forth above reflects NSCC's and the Members' current 
practice and is not specifically set forth in the Rules. The timing and 
procedures with respect to customer account transfers is intended to be 
consistent with the timing set forth in FINRA Rule 11870. While the 
five-day timing is illustrative of typical timing, variations may occur 
if the Members that are party to the transfer agree. For instance, the 
Delivering Member may deliver the asset list on Day 1 rather than Day 
2, or, as discussed below, the Receiving Member may accept the assets 
on Day 2 rather than Day 3.
    Under current practice, a Receiving Member may accept all or a 
portion of the assets prior to the end of the review period and forego 
its right to review the asset list for the remaining review period, 
which is referred to as ``accelerating the transfer''. For instance, in 
the above five-day example, if a Receiving Member accepts all or a 
portion of the assets in Day 2, when it receives the asset data list, 
it is choosing not to review the assets on Day 3 and removing a day 
from the overall timing of a customer account transfer process. This 
acceleration process is not explicitly stated in the Rules, except for 
a reference to an ``acceleration instruction'' in Section 8 of Rule 50 
which is referring to an instruction by the Receiving Member that the 
Receiving Member accepts all or a portion of the assets and wishes to 
accelerate the transfer.\12\
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    \12\ Section 8 of Rule 50, supra note 5.
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    During the Receiving Member's review period, the Delivering Member 
can add, delete or change an item on the asset list which, in each 
case, adds another business day to the transfer cycle by giving the 
Receiving Member one additional business day to review.\13\
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    \13\ Id.
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    During the transfer period, an investor's assets will remain 
invested in the market but trading may be restricted.\14\ The inability 
to trade may expose the investor to additional market risk. Currently 
there is an industry initiative underway to shorten the ACATS 
settlement cycle and create a more streamlined ACATS process.\15\ In 
conjunction with the industry initiative, NSCC is proposing to modify 
the Rules to formalize the acceleration process by explicitly stating 
the right of the Receiving Member to accelerate a transfer, and to 
restrict the ability of Members to adjust accounts that are being 
transferred once an ACATS transfer in accelerated status in order to 
reduce delays in transfers in accelerated status. In addition, NSCC is 
proposing to modify the Rules relating to transfers upon Reclaims,\16\ 
Residual Credits \17\

[[Page 6657]]

and Partial Accounts \18\ to provide for a more efficient process for 
ACATS account transfers. NSCC is also proposing to modify the Rules to 
make some clarifications to improve readability of the Rules.
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    \14\ During the period when an account transfer is pending, some 
firms will freeze trading on the client account until the account 
transfer is complete. Firms regulated by FINRA are required to 
freeze the account, by cancelling all open orders with the exception 
of option positions that expire within seven (7) business days, upon 
validation of an instruction to transfer securities account assets 
in whole. See FINRA Rule 11870(d), supra note 6.
    \15\ The industry initiative to shorten the ACATS settlement 
cycle and streamline the ACATS process is being led by the Customer 
Account Transfer forum (``SIFMA CAT Forum'') of the Securities 
Industry and Financial Markets Association, an industry trade group 
representing securities firms, banks, and asset management 
companies.
    \16\ A Reclaim is a non-standard transfer initiated by a 
Delivering Member requesting the transfer of assets that were 
mistakenly delivered as part of ACATS. See Section 12(iv) of Rule 
50, supra note 5.
    \17\ Residual Credits are residual credit positions which are 
received for the benefit of a customer's account by the Delivering 
Member after the ACAT process is completed or which, due to a 
restriction, were not included in the original asset transfer. See 
Section 12 of Rule 50, supra note 5.
    \18\ Partial Accounts are partial accounts held by a Delivering 
Member (in the form of cash or securities). Id. For instance, if a 
Delivering Member held four asset classes on behalf of a client, a 
Partial Account could be a transfer of one of the asset classes.
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(b) Proposed Rule Change
    NSCC is proposing to modify the Rules to add a provision providing 
for the right of the Receiving Member to accelerate the transfer by 
either (a) providing an acceleration instruction to NSCC upon receipt 
of the customer account asset data list from NSCC and accepting all 
assets or (b) deleting MF/IPS Products \19\ and accepting the remaining 
assets. NSCC is proposing to add that the transfer that has been 
accelerated will be in accelerated status. NSCC is also proposing to 
modify the Rules to (i) reduce the adjustments that Delivering Members 
can make during an ACATS transfer in accelerated status, (ii) provide 
that Reclaims may be initiated with respect to transfers where a non-
Member ACATS participant is a party to the delivery, (iii) add a 
provision allowing Receiving Members to delete Fund/Serv Eligible Fund 
\20\ assets upon transfer requests for Residual Credits and Partial 
Accounts and (iv) make certain clarifications described below.
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    \19\ Section 8 of Rule 50 provides that the Receiving Member may 
delete ``MF/IPS Products'' upon receipt of an asset list. See 
Section 8 of Rule 50, supra note 5. MF/IPS Products are defined as 
Fund/Serv Eligible Fund assets and/or IPS Eligible Products. Id. IPS 
Eligible Products are defined as an insurance product or a 
retirement or other benefit plan or program included in the list for 
which provision is made in Section 1.(d) of Rule 3. See definition 
of ``IPS Eligible Products'' in Rule 1, supra note 5.
    \20\ A Fund/Serv Eligible Fund is a fund or other pooled 
investment entity included in the list for which provision is made 
in Section 1.(c) of Rule 3 of the Rules. See definition of ``Fund/
Serv Eligible Fund'' in Rule 1, supra note 5.
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(i) Acceleration
    Acceleration is a current practice pursuant to which a Receiving 
Member will accept all or a portion of the assets in a transfer and 
choose not to use its right to review during the remaining review 
period. When a Receiving Member accelerates on the same day that a 
Delivering Member loads the asset list with respect to a transfer 
request, the transfer cycle is reduced by one day. Currently, after a 
Receiving Member accelerates the transfer, ACATS allows a Delivering 
Member to adjust the asset list, which results in the extension of the 
review period for an additional day.\21\ For example, if a Delivering 
Member adjusts assets after acceleration by a Receiving Member, ACATS 
adds back a review day to the transfer timeline. To restore the 
acceleration and maintain the same timeline, the Receiving Member must 
accelerate again on that same day.
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    \21\ See Section 8 of Rule 50, supra note 5, providing that 
``[e]ach business day that a Delivering Member causes an adjustment 
to be made to the account will give the Receiving Member an 
additional one (1) business day to review the account.''
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    NSCC is proposing to formalize the current acceleration process by 
providing a right of the Receiving Member to accelerate the transfer 
which will place the transfer in accelerated status. A Receiving Member 
would accelerate a transfer of a customer account by either (i) 
providing an acceleration instruction to NSCC upon receipt of the 
customer account asset data list from NSCC and accepting all assets or 
(ii) deleting MF/IPS Products and accepting the remaining assets.
    In addition, NSCC is proposing to change the adjustment process for 
transfers such that once a transfer is in accelerated status, no 
additional adjustments would be allowed to be made by either the 
Delivering Member or the Receiving Member, except for deletions of MF/
IPS Products \22\ by the Receiving Member. The proposed change has been 
requested by SIFMA CAT Forum, on behalf of the industry, which believes 
the change would make the acceleration process more certain by 
preventing adjustments during the accelerated status by a Delivering 
Member. Preventing adjustments for account transfers in accelerated 
status would put the onus on Delivering Members to ensure that the 
asset list they are initially providing is accurate. If an asset list 
is incorrect, and a Receiving Member accelerates, a Delivering Member 
would be able to initiate a Reclaim (discussed below) to retrieve any 
assets that were mistakenly added to the initial asset list and 
transferred to the Receiving Member.
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    \22\ See supra note 19.
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    NSCC is proposing to effect the proposed change by (i) adding in a 
right of the Receiving Member to accelerate in Section 8 of Rule 50 and 
to place a transfer in accelerated status and (ii) modifying three 
provisions of Section 8 of Rule 50 to restrict the Delivering Member 
from making additional modifications once a transfer is in accelerated 
status.
(ii) Reclaims
    A Reclaim is a non-standard transfer initiated by a Delivering 
Member requesting the transfer of assets that were mistakenly delivered 
as part of ACATS.\23\ Reclaims provide a process through ACATS by which 
Delivering Members can retrieve assets that were incorrectly sent to 
the Receiving Firm through ACATS. The Rules currently provide that a 
Reclaim may only be initiated to the extent that the delivery is 
between a Member and another Member.\24\ NSCC is proposing to modify 
the Rules to provide that a Reclaim may be initiated even if a party to 
the delivery is not a Member but is a participant of The Depository 
Trust Company (``DTC'').
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    \23\ See supra note 16.
    \24\ Id.
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    In 1998, NSCC modified ACATS to allow DTC participants that are not 
Members to participate in ACATS.\25\ As a result of the 1998 change, 
entities that are not Members, but that are DTC participants, can 
participate in ACATS through the use of DTC's services; however, DTC 
participants were precluded from using certain non-standard processes, 
such as Fail Reversals and Reclaims during its initial implementation. 
As usage by DTC participants has increased and matured, the industry 
has provided feedback indicating the desire to allow additional 
capabilities such as Reclaims to be used for DTC participants.
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    \25\ Securities Exchange Act Release No. 40657 (November 10, 
1998), 63 FR 63952 (November 17, 1998) (SR-NSCC-98-06).
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    In response to client requests, NSCC is proposing to modify Section 
12(iv) of Rule 50 to remove the requirement that Reclaims may only be 
initiated to the extent the delivery is between a Member and another 
Member. This proposed change would provide that Reclaims could be made 
for assets being delivered to or from DTC participants that participate 
in ACATS as well as deliveries to or from Members. Based on industry 
feedback, it is believed that allowing Reclaims for deliveries where a 
DTC participant is a party to the delivery would improve the efficiency 
of the account transfer process by allowing such parties requesting 
such Reclaims to use the already established automated ACATS process 
currently available for Reclaims between Members and Members.
(iii) Deletion of Fund/Serv Eligible Fund Assets Upon Residual Credits/
Partial Accounts Transfer Request
    ACATS allows the Delivering Member to initiate a transfer of, among 
other

[[Page 6658]]

things, Residual Credits and Partial Accounts. If a Delivering Member 
initiates a transfer of Residual Credits or Partial Accounts, the 
Receiving Member may either reject or accept the transfer request but 
may not submit corrections to the transfer request.\26\ For full 
account transfer requests, in addition to rejecting or accepting the 
transfer request, Receiving Members may delete mutual fund products and 
insurance products from the transfer request.\27\ Receiving Members may 
delete such assets in situations where the Receiving Member is unable 
to hold the assets, such as when it is in violation of its credit 
policy to hold such assets. NSCC is proposing to add a provision 
allowing Receiving Members to delete mutual fund products, or Fund/Serv 
Eligible Fund assets, from a transfer request for Partial Accounts and 
Residual Credits consistent with the ability to delete such assets from 
a full account transfer request.
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    \26\ Clause 2, Section 12 of Rule 50, supra note 5.
    \27\ See supra note 19.
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    The proposed Rule change would modify clause 2, Section 12 of Rule 
50 to provide an exception allowing a Receiving Member to delete Fund/
Serv Eligible Fund assets upon a transfer request for Partial Accounts 
and Residual Credits. The proposed change would align the transfer 
requests for Partial Accounts and Residual Credits with full account 
transfer requests with respect to deleting Fund/Serv Eligible Fund 
assets from the transfer requests. Allowing Receiving Members to delete 
Fund/Serv Eligible Fund assets would allow Receiving Members to reject 
specific assets that they are unable to hold rather than rejecting the 
entire transfer request.
    Allowing a partial rejection of mutual fund products in a transfer 
request is consistent with full transfer requests and would increase 
efficiency in the account transfer process. Without the proposed 
change, Receiving Firms that receive a request for transfer that 
contains mutual fund products that cannot be held by the Receiving Firm 
must reject the transfer request. The Delivering Firm would then be 
required to send another transfer request for transfer of Partial 
Accounts and Residual Credits through ACATS containing only assets that 
can be held by the Receiving Member which would delay the process or 
require the transfer of assets outside of the ACATS process. Allowing 
the Receiving Members to delete the assets that they are unable to hold 
from the transfer requests would prevent unnecessary delay in the 
transfer process for Partial Accounts and Residual Credits.
(iv) Clarifications
    NSCC is also proposing to make the following clarifications to the 
Rules. NSCC is proposing to change the defined term ``ACAT Service'' to 
``ACATS'' and replace the phrase ``the ACAT Service'' with ``ACATS'' in 
several places to reflect current conventional use of the name of the 
service. NSCC is proposing to add ``Receiving'' in the first sentence 
of Section 8 of Rule 50 in order to clarify that the Member referenced 
in that clause is a Receiving Member. NSCC is proposing to delete ``(as 
defined below)'' after MF/IPS Products in Section 8 of Rule 50 because 
the new proposed language relating to a Receiving Member's ability to 
accelerate a transfer would first reference that the defined term MF/
IPS Products is defined below. NSCC is proposing to move the defined 
term ``Reclaims'' in Section 12(iv) of Rule 50 to make it clear that 
Reclaims refer to transfers of ``cash or securities mistakenly 
delivered as part of ACATS.'' NSCC is proposing to replace ``Fund/SERV 
eligible assets'' with ``Fund/Serv Eligible Fund assets'' in Section 
12(3)(ii) and Section 13 of Rule 50, and replace ``Fund/SERV Eligible 
Fund asset'' with ``Fund/Serv Eligible Fund asset'' in footnote 4 of 
Rule 50, in each case, in order to use the correct defined term for 
Fund/Serv Eligible Fund. NSCC is also proposing to delete ``(as defined 
in Section 8)'' in footnote 4 of Rule 50 as the definition of Fund/Serv 
Eligible Fund asset is not contained in Section 8.
(c) Implementation Timeframe
    NSCC expects to implement the proposed rule changes on February 21, 
2020. As proposed, a legend would be added to Rule 50 stating there are 
changes that became effective upon filing with the Commission but have 
not yet been implemented. The proposed legend also would include 
February 21, 2020, as the date on which such changes would be 
implemented and the file number of this proposal, and state that, once 
this proposal is implemented, the legend would automatically be removed 
from Rule 50.
(2) Statutory Basis
    Section 17A(b)(3)(F) of the Act requires, in part, that the Rules 
be designed to promote the prompt and accurate clearance and settlement 
of securities transactions.\28\ NSCC believes that each of the proposed 
rule changes set forth above are consistent with this provision.
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    \28\ 15 U.S.C. 78q-1(b)(3)(F).
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    First, providing for a right of a Receiving Member to accelerate a 
transfer and to shorten its review period after it has agreed to accept 
assets and no longer needs to review would reduce delays in the 
transfer cycle by removing unnecessary review time from the process. In 
addition, reducing the adjustments that Delivering Members can make 
during an ACATS transfer in accelerated status would further reduce 
delays caused by such adjustments in a transfer that is in accelerated 
status. Reducing delays in the transfer cycle is consistent with the 
industry initiative to reduce the ACATS settlement cycle and to 
streamline the ACATS process and would bring greater efficiencies to 
the account transfer process.
    Second, providing that Reclaims of assets may be initiated for 
transfers where a non-Member participant is a party to the delivery 
would allow ACATS participants to initiate Reclaims using ACATS for 
deliveries where a DTC participant is a party. Allowing such Reclaims 
to be processed through the automated ACATS system would be a more 
streamlined method of processing the delivery of such assets as opposed 
to manually delivering such assets not using ACATS and as such would 
bring greater efficiencies to the account transfer process.
    Third, adding a provision allowing Receiving Members to delete 
Fund/Serv Eligible Fund assets upon transfer requests for Residual 
Credits and Partial Accounts would align such rights with the rights 
Receiving Members have to delete such assets in full account transfers. 
In addition, the ability to delete such assets would make the process 
more efficient by allowing Receiving Members to make such deletions in 
the ACATS system rather than having to reject such transfer requests, 
requiring the Delivering Member to either resend another transfer 
request through ACATS or to manually transfer assets without such 
mutual fund products not using ACATS. As such, allowing Receiving 
Members to delete Fund/Serv Eligible Fund assets upon transfer requests 
for Residual Credits and Partial Accounts would bring greater 
efficiencies to the account transfer process.
    Therefore, by bringing greater efficiencies to the account transfer 
process as set forth above, NSCC believes the proposed rule change 
would promote the prompt and accurate clearance and settlement of 
securities transactions, consistent with the

[[Page 6659]]

requirements of the Act, in particular Section 17A(b)(3)(F) of the 
Act.\29\
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    \29\ Id.
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    The clarification changes set forth in II(A)(i)(b)(iv) above are 
also consistent with this provision because the proposed clarification 
changes would enhance clarity and transparency for participants with 
respect to services offered by NSCC allowing ACATS participants to have 
a better understanding of the Rules relating to ACATS and the customer 
account transfer process. Having clear and accurate Rules would help 
Members to better understand their rights and obligations regarding 
NSCC's clearance and settlement services. NSCC believes that when 
Members better understand their rights and obligations regarding NSCC's 
services, they can act in accordance with the Rules. NSCC believes that 
better enabling Members to comply with the Rules would promote the 
prompt and accurate clearance and settlement of securities transactions 
by NSCC consistent with the requirements of the Act, in particular 
Section 17A(b)(3)(F) of the Act.\30\
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    \30\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change would have any 
adverse impact, or impose any burden, on competition. NSCC believes 
that the proposed changes set forth in II(A)(1)(b)(i)-(iii) above would 
bring greater efficiencies to the account transfer process as discussed 
above consistent with the industry initiatives to streamline ACATS and 
would promote competition by allowing ACATS participants to process 
account transfers in a faster, more efficient manner. Allowing ACATS 
participants to process account transfers in a more efficient manner 
would result in client assets being transferred to the appropriate 
Members and DTC participants more quickly. NSCC believes that reducing 
the time it takes to transfer account assets to the appropriate Member 
or DTC participant using ACATS would allow the Members' or DTC 
participants' respective clients to transfer securities in their 
transferred accounts more quickly, promoting the ability to trade such 
securities and therefore promoting competition in the marketplace.
    NSCC does not believe that the proposed clarification changes set 
forth in II(A)(1)(b)(iv) above would have any impact on competition 
because such changes are clarifications of the Rules which would 
improve the Member's understanding of the Rules and would not otherwise 
affect the rights or obligations of NSCC Members.

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

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

III. Date of Effectiveness of the Proposed Rule Change, and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) \31\ of the Act and paragraph (f) \32\ 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.
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    \31\ 15 U.S.C 78s(b)(3)(A).
    \32\ 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 rule-comments@sec.gov. Please include 
File Number SR-NSCC-2020-001 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-2020-001. 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 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-2020-001 and should be submitted on 
or before February 26, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\33\
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    \33\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-02185 Filed 2-4-20; 8:45 am]
 BILLING CODE 8011-01-P