Document ID: SEC-2013-1685-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2013-10-01T04:00Z

[Federal Register Volume 78, Number 190 (Tuesday, October 1, 2013)]
[Notices]
[Pages 60347-60348]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23829]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70501; SR-NSCC-2013-02]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Designation of Longer Period for Commission 
Action on Proceedings To Determine Whether To Approve or Disapprove a 
Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, To 
Institute Supplemental Liquidity Deposits to Its Clearing Funding 
Designed To Increase Liquidity Resources To Meet Its Liquidity Needs

September 25, 2013.
    On March 21, 2013, National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 
thereunder,\2\ a proposed rule change to institute supplemental 
liquidity deposits to its Clearing Fund in order to increase liquidity 
resources to meet its liquidity needs (``Proposed Rule Change''). The 
Proposed Rule Change was published for comment in the Federal Register 
on April 10, 2013.\3\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4. NSCC also filed the proposal contained in 
the Proposed Rule Change as advance notice SR-NSCC-2013-802 
(``Advance Notice''), as modified by Amendment No. 1, pursuant to 
Section 806(e)(1) of the Payment, Clearing, and Settlement 
Supervision Act of 2010 (``Clearing Supervision Act'') and Rule 19b-
4(n)(1)(i) thereunder. See Release No. 34-69451 (Apr. 25, 2013), 78 
FR 25496 (May 1, 2013). On May 20, 2013, the Commission extended the 
period of review of the Advance Notice, as modified by Amendment No. 
1. Release No. 34-69605 (May 20, 2013), 78 FR 31616 (May 24, 2013). 
On June 11, 2013, NSCC filed Amendment No. 2 to the Advance Notice, 
as previously modified by Amendment No.1. Release No. 34-69954 (Jul. 
9, 2013), 78 FR 42127 (Jul. 15, 2013). On July 18, 2013, the 
Commission made a request of NSCC to provide additional information 
regarding the Advance Notice, as amended, pursuant to Section 
806(e)(1)(D) of the Clearing Supervision Act. 12 U.S.C. 
5465(e)(1)(D). Upon the Commission's receipt of NSCC's complete 
response to that request, the Commission will have 60 days to issue 
an objection or no objection to the Advance Notice. See 12 U.S.C. 
5465(e)(1)(E) and (G). The proposal in the Proposed Rule Change, as 
amended, and the Advance Notice, as amended, shall not take effect 
until all regulatory actions required with respect to the proposal 
are completed.
    \3\ Release No. 34-69313 (Apr. 4, 2013), 78 FR 21487 (Apr. 10, 
2013).
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    On April 19, 2013, NSCC filed with the Commission Amendment No. 1 
to the Proposed Rule Change, which, on May 29, 2013, the Commission 
published for comment in the Federal Register and designated a longer 
period for Commission action on the Proposed Rule Change, as 
amended.\4\
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    \4\ See Release No. 34-69620 (May 22, 2013), 78 FR 32292 (May 
29, 2013).
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    On June 11, 2013, NSCC filed Amendment No. 2 to the Proposed Rule 
Change, as previously modified by Amendment No. 1, which, on July 15, 
2013, the Commission published for comment in the Federal Register and 
issued an order instituting proceedings to determine whether to approve 
or disapprove the Proposed Rule Change, as amended (``Order Instituting 
Proceedings'').\5\ In the Order Instituting Proceedings, the Commission 
solicited comment on whether Amendment No. 2 adequately addresses the 
concern raised by some commenters that the Proposed Rule Change, as 
amended, could have a discriminatory impact on NSCC's non-bank 
affiliated members who would be subject to the proposal but who do not 
currently participate in NSCC's Credit Facility.\6\
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    \5\ Release No. 34-69951 (Jul. 9, 2013), 78 FR 42140 (Jul. 15, 
2013).
    \6\ See id.
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    Prior to issuing the Order Instituting Proceedings, the Commission 
had received fourteen comment letters to the proposal contained in the 
Proposed Rule Change and its related Advance Notice,\7\ including 
NSCC's response to the comment letters received as of June 10, 2013.\8\ 
In response to the Order Instituting Proceedings, the Commission 
received eight additional comment letters, including NSCC's response to 
the comment letters received as of August 20, 2013 to the Order 
Instituting Proceedings.\9\
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    \7\ See Comments Received on File Nos. SR-NSCC-2013-02 (http://sec.gov/comments/sr-nscc-2013-02/nscc201302.shtml) and SR-NSCC-2013-
802 (http://sec.gov/comments/sr-nscc-2013-802/nscc2013802.shtml). 
Since the proposal contained in the Proposed Rule Change was also 
filed as an Advance Notice, see Release No. 34-69451, supra note 2, 
the Commission is considering all public comments received on the 
proposal regardless of whether the comments are submitted to the 
Proposed Rule Change, as amended, or the Advance Notice, as amended.
    \8\ NSCC also received a comment letter directly prior to filing 
the Proposed Rule Change and related Advance Notice with the 
Commission, which NSCC provided to the Commission in Amendment No. 1 
to the filings. See Exhibit 2 to File No. SR-NSCC-2013-02 (http://sec.gov/rules/sro/nscc/2013/34-69620-ex2.pdf).
    \9\ See Comments Received, supra note 7.
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    Section 19(b)(2)(B)(ii)(I) of the Exchange Act provides that, after 
initiating disapproval proceedings, the Commission shall issue an order 
approving or disapproving a proposed rule change not later than 180 
days after the date of publication of notice of the filing of the 
proposed rule change.\10\ The

[[Page 60348]]

Commission may extend the period for issuing an order approving or 
disapproving the proposed rule change, however, by not more than 60 
days if the Commission determines that a longer period is appropriate 
and publishes the reasons for such determination.\11\ The Proposed Rule 
Change was published for notice and comment in the Federal Register on 
April 10, 2013. The 180th day after that publication date is October 7, 
2013.
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    \10\ 15 U.S.C. 78s(b)(2)(B)(ii)(I).
    \11\ 15 U.S.C. 78s(b)(2)(B)(ii)(II).
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    The Commission finds it appropriate to designate a longer period 
within which to issue an order approving or disapproving the Proposed 
Rule Change, as amended, so that it has sufficient time to consider the 
amended proposal, the issues raised in the comment letters to the 
amended proposal, including comment letters submitted in response to 
the Order Instituting Proceedings, and NSCC's responses to such 
comments.
    Accordingly, the Commission, pursuant to Section 
19(b)(2)(B)(ii)(II) of the Exchange Act,\12\ designates December 6, 
2013, as the date by which the Commission should either approve or 
disapprove the Proposed Rule Change (SR-NSCC-2013-02).
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    \12\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(57).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-23829 Filed 9-30-13; 8:45 am]
BILLING CODE 8011-01-P