Document ID: SEC-2010-0160-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Revise Fee Schedule
Posted Date: 2010-01-29T05:00Z

[Federal Register: January 29, 2010 (Volume 75, Number 19)]
[Notices]               
[Page 4894-4895]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29ja10-125]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-61413; File No. SR-NSCC-2009-12]

 
Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Revise Fee Schedule

January 25, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 31, 2009, 
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 primarily by NSCC. NSCC filed the proposal pursuant to 
Section 19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) \3\ 
thereunder so that the proposal was effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \3\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to revise certain fees 
for NSCC services and make other technical changes to the NSCC Fee 
Schedule.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections (A), 
(B) and (C) below, of the most significant aspects of such 
statements.\4\
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    \4\ The Commission has modified the text of the summaries 
prepared by NSCC.

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[[Page 4895]]

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    NSCC proposes revising certain service fees and making other 
technical changes to its Fee Schedule. Increased fees are proposed for 
Fund/SERV transactions and certain clearance activity.\5\ There will 
also be an increase in the monthly fee for the mutual fund Profile 
Phase II Service; \6\ however, NSCC is introducing a corresponding 
credit for users of the service with twenty-five or fewer funds in 
their fund family.
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    \5\ The Clearance Activity Fee formerly appeared on the NSCC Fee 
Schedule as the Trade Netting Fee. NSCC proposes changing the name 
to Clearance Activity Fee to reflect that the fee covers trade 
recording as well as netting services. The fee uses a tiered 
structure graduated to the number of sides submitted monthly for 
trade recording and netting. It also includes a value into the net 
fee and a value out of the net fee.
    \6\ NSCC offers two levels of the Profile service. Profile Phase 
I transmits mutual fund price and rate information. Profile Phase II 
stores data elements such as accumulation, breakpoints, and 
commission eligibility that relate to mutual fund processing rules.
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    NSCC also proposes eliminating or reducing certain fees. The 
monthly fee charged to members that act on behalf of brokers or dealers 
will be eliminated, and the Flip Trades fee will be reduced.
    Fee structure changes and other technical Fee Schedule 
modifications are proposed. The fee structure for trade processing 
accounts will be revised from a tiered structure to a flat monthly 
charge per account. A change reflecting that flat fee will remove 
monthly maximum cumulative charges associated with Trade Input, the 
Trade Processing System, and the Global Clearance Network Service.\7\ 
Provisions in the Fee Schedule stating that Trade Recording Fees are 
charged for all Online Comparison System and Intra-day Comparison 
System trades placed in NSCC's comparison system will be removed.\8\ 
This is because those systems no longer submit locked-in bond or 
foreign security trades to NSCC. Additional Fee Schedule changes will 
remove monthly maximum cumulative membership fees for Fund/SERV, 
Networking, and Mutual Fund Commission Settlement, relocate the 
Clearance Activity Fee to demonstrate its position in NSCC's processing 
flow,\9\ and provide a technical adjustment to the number of 
Participant Fees.
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    \7\ This charge will no longer apply to Municipal Comparison-
Only Members.
    \8\ These changes are reflected in a footnote to section I.C. of 
the Fee Schedule.
    \9\ The introductory paragraph of the Trade Clearance Fees 
section will also be revised to reflect that the fee includes trade 
recording services.
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    These proposed fee revisions are consistent with NSCC's overall 
pricing philosophy of aligning service fees with underlying costs. The 
effective date for these fee adjustments was January 4, 2010. The 
changes to NSCC's Fee Schedule can be found in Exhibit 5 to proposed 
rule change SR-NSCC-2009-12 at http://www.dtcc.com/downloads/legal/
rule_filings/2009/nscc/2009-12.pdf.
    NSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \10\ and the rules and 
regulations thereunder because it updates NSCC's fee schedule to 
provide an equitable allocation of fees among its members.
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    \10\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will have any 
impact or impose any burden on competition.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    Written comments relating to the proposed rule change have not yet 
been solicited or received. NSCC will notify the Commission of any 
written comments received by NSCC.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \11\ and Rule 19b-4(f)(2) \12\ thereunder 
because the proposed rule change is establishing or changing a due, 
fee, or other charge applicable only to a member. At any time within 
sixty days of the filing of such rule change, the Commission may 
summarily abrogate 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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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-4(f)(2).
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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

     Electronic comments may be submitted by using the 
Commission's Internet comment form (http://www.sec.gov/rules/
sro.shtml), or
     Send an e-mail to rule-comments@sec.gov. Please include 
File No. SR-NSCC-2009-12 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 Number SR-NSCC-2009-12. This file 
number should be included on the subject line if e-mail is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for inspection and 
copying in the Commission's Public Reference Section, 100 F Street, 
NE., Washington DC 20549, on official business days between the hours 
of 10 a.m. and 3 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://www.dtcc.com/downloads/legal/rule_filings/2009/
nscc/2009-12.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 number SR-
NSCC-2009-12 and should be submitted on or before February 19, 2010.

    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)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-1854 Filed 1-28-10; 8:45 am]
BILLING CODE 8011-01-P