Document ID: SEC-2011-0358-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2011-03-15T04:00Z

[Federal Register Volume 76, Number 50 (Tuesday, March 15, 2011)]
[Notices]
[Pages 14113-14114]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-5954]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64065; File No. SR-NSCC-2011-01]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Modification of Trade Recording Fee for Bonds 
and Other Technical Rule Changes

March 9, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on February 28, 2011, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change as described in Items I and II below, which Items have been 
prepared primarily by NSCC. NSCC filed the proposed rule change 
pursuant to Sections 19(b)(3)(A)(ii) and 19(b)(3)(A)(iii) of the Act 
\2\ and Rules 19b-4(f)(2) and 19b-4(f)(4) thereunder \3\ 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) and 15 U.S.C. 78s(b)(3)(A)(iii).
    \3\ 17 CFR 240.19b-4(f)(2) and 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change amends Addendum A of the NSCC Rules & 
Procedures to modify NSCC's fee schedule and to clarify the scope of 
trade recording fees and the computation of clearance activity fees.

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.

[[Page 14114]]

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

    The purpose of the proposed rule change is to revise NSCC's fee 
schedule (as set forth in Addendum A of NSCC's Rules and Procedures) to 
adjust the trade recording fee for bonds to align the fee with the cost 
of providing the service. NSCC is adjusting the trade recording fee for 
each side of a bond item entered for settlement but not compared by 
NSCC from $0.65 per side to $0.85 per side.
    In addition, NSCC is making technical changes to: (1) Clarify that 
trade recording fees for equities are incorporated into the Clearance 
Activity Fee set forth in Section II.A. of the fee schedule and (2) 
adjust the lettering and numbering of the Clearance Activity Fee as set 
forth in the fee schedule to provide greater clarity as to how the 
various components of that fee are summed.
    The above fee change took effect on March 1, 2011. The textual 
changes to NSCC's rules can be found online at http://www.dtcc.com/downloads/legal/rule_filings/2011/nscc/2011-01.pdf.
    NSCC states that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \4\ and the rules and 
regulations thereunder because it updates NSCC's fee schedule to align 
the trade recording fee for bonds with the costs of providing the 
service and makes other technical changes that clarify how fees are 
calculated. NSCC asserts that the proposed rule change provides for the 
equitable allocation of fees among its members.
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    \4\ 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

    NSCC has not solicited or received written comments relating to the 
proposed rule change. NSCC will notify the Commission of any written 
comments 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 Sections 
19(b)(3)(A)(ii) and 19(b)(3)(A)(iii) of the Act \5\ and Rules 19b-
4(f)(2) and 19b-4(f)(4) \6\ thereunder because it (a) effects a change 
in an existing service of a registered clearing agency that does not 
adversely affect the safeguarding of securities and funds in the 
custody or control of the clearing agency or for which it is 
responsible and does not significantly affect the respective rights or 
obligations of the clearing agency or persons using the service and (b) 
establishes or changes a due, fee, or other charge applicable only to a 
member. 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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    \5\ Supra note 2.
    \6\ Supra note 3.
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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 e-mail to rule-comment@sec.gov. Please include 
File No. SR-NSCC-2011-01 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-2011-01. 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 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 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at NSCC's principal office and on NSCC's Web 
site at http://www.dtcc.com/legal/rule_filings/nscc/2011.php. 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-2011-01 and should be 
submitted on or before April 5, 2011.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-5954 Filed 3-14-11; 8:45 am]
BILLING CODE 8011-01-P