Document ID: SEC-2007-1081-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: National Securities Clearing Corp.
Posted Date: 2007-08-08T04:00Z

[Federal Register: August 8, 2007 (Volume 72, Number 152)]
[Notices]               
[Page 44600-44601]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08au07-117]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56184; File No. SR-NSCC-2007-10]

 
Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Fees Charged for Its Positions and Valuations 
Service

 August 2, 2007.
    Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on May 11, 2007, the National 
Securities Clearing Corporation (``NSCC'') filed with the Securities 
and Exchange Commission (``Commission'') the proposed rule change 
described in Items I, II, and III below, which items have been prepared 
primarily by NSCC. NSCC filed the proposed rule change pursuant to 
section 19(b)(3)(A)(ii) of the Act \2\ and Rule 19b-4(f)(2) 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 parties.
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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 reduce the fees that 
NSCC charges for its Positions and Valuations service (``POV''), which 
is part of the Insurance and Retirement Processing Service (``IPS'') 
effective July 1, 2007.\4\
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    \4\ The Insurance and Retirement Processing Service was formerly 
called the Insurance Processing Service.
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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 these 
statements.\5 \
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    \5\ The Commission has modified the text of the summaries 
prepared by NSCC.

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[[Page 44601]]

(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 reduce the fees that 
NSCC charges for its POV service effective July 1, 2007.
    The transaction fees schedule for the IPS POV service is tiered 
according to the numbers of transaction processed. The following chart 
shows the current fees and the proposed reduced fees.

----------------------------------------------------------------------------------------------------------------
          POV position records                     Current (items)                     Proposed (items)
----------------------------------------------------------------------------------------------------------------
From 0 to 500,000 items per month......  $8.00 per 1,000....................  $ no change.
From 500,001 to 2,000,000 items per      $4.50 per 1,000....................  $4.00 per 1,000.
 month.
From 2,000,001 to 4,000,000 items per    $3.75 per 1,000....................  $3.00 per 1,000.
 month.
For 4,000,001 or more items per month..  $3.50 per 1,000....................  $2.00 per 1,000.
----------------------------------------------------------------------------------------------------------------

    These fees are being reduced due to an increase in volume and 
revenue in NSCC's IPS over recent years which has resulted in excess 
revenue for these services.
    The proposed rule change is consistent with the requirements of 
Section 17A of the Act \6\ and the rules and regulations thereunder 
applicable to NSCC because the proposed change provides for the 
equitable allocation of dues fees and other charges among NSCC members 
and aligns fees for services with the associated cost to deliver the 
service.
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    \6\ 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 upon filing pursuant 
to section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \8\ 
thereunder because the rule establishes a due, fee, or other charge. At 
any time within sixty days of the filing of the proposed rule change, 
the Commission could have summarily abrogated such rule change if it 
appeared to the Commission that such action was 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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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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

     Use 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 Number SR-NSCC-2007-10 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NSCC-2007-10. 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 Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. The text of the proposed rule change is available at 
NSCC, the Commission's Public Reference Room, and http://www.nscc.com/legal/2007/2007-10.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-2007-10 and should be submitted on or before August 29, 2007.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-15433 Filed 8-7-07; 8:45 am]

BILLING CODE 8010-01-P