Document ID: SEC-2014-2205-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2014-12-31T05:00Z

[Federal Register Volume 79, Number 250 (Wednesday, December 31, 2014)]
[Notices]
[Pages 78927-78928]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-30591]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73929; File No. SR-NSCC-2014-13]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Amend Addendum A (Fee Structure) With Respect to Fees 
Related to NSCC's Obligation Warehouse Service

December 23, 2014.
    Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on December 17, 2014, 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 proposed rule change pursuant to section 19(b)(3)(A) \3\ of 
the Act and Rule 19b-4(f)(2) \4\ thereunder. The proposed rule change 
was effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
---------------------------------------------------------------------------

    \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)(2).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change consists of amendments to Addendum A of 
the Rules & Procedures (``Rules'') of NSCC in order to adjust certain 
fees related to NSCC's Obligation Warehouse service, as more fully 
described below.

II. Clearing Agency'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.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to revise NSCC's fee 
schedule (as listed in Addendum A of the Rules) in order to adjust 
certain fees related to NSCC's Obligation Warehouse (``OW''), a non-
guaranteed, automated service that tracks, stores, and maintains 
unsettled ex-clearing and failed obligations, as well as obligations 
exited from NSCC's Continuous Net Settlement (``CNS'') system, non-CNS 
Automated Customer Account Transfer Service (``ACATS'') Receive and 
Deliver Instructions, Balance Orders, and Special Trades, as such terms 
are defined in the Rules. The OW service provides transparency, serves 
as a central storage of open (i.e. failed or unsettled) broker-to-
broker obligations, and allows users to manage and resolve exceptions 
in an efficient and timely manner.
    Currently, NSCC charges a fee to the recipient of a delivery 
notification request advisory, which informs the recipient that the 
submitting party has acknowledged that an OW obligation between those 
parties has settled, if that notification is aged two days or older 
(``Aged Delivery Advisories''); and also charges a fee to the recipient 
of a pending cancel request advisory, which requests that the recipient 
cancel a previously compared OW obligation, if that request is aged two 
days or older (``Aged Cancel Advisories''). NSCC is proposing to revise 
its fee schedule to increase the fees charged for Aged Delivery 
Advisories and Aged Cancel Advisories as marked on Exhibit 5 hereto.\5\ 
The increase in these fees would encourage more timely action by the 
recipients of these advisories, and would align the fees associated 
with the OW service with the costs of delivering that service to NSCC's 
Members. NSCC also proposes to remove notations in Addendum A related 
to the phased-in implementation for fees charged for each pending 
comparison advisory that are aged 5 days or older.
---------------------------------------------------------------------------

    \5\ The Commission notes that Exhibit 5 is attached to the 
filing, not to this Notice.
---------------------------------------------------------------------------

    The proposed rule change is marked on Exhibit 5 hereto as 
amendments to Addendum A to NSCC's Rules. No other changes to the Rules 
are contemplated by this proposed rule change. The proposed fee change 
would take effect on January 1, 2015.
2. Statutory Basis
    The proposed rule change is consistent with the requirements of the 
Act and the rules and regulations thereunder, in particular section 
17A(b)(3)(D) of the Act,\6\ which requires that the Rules provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its participants. The proposed rule change would align NSCC's 
fees with the costs of delivering services to NSCC Members, and would 
allocate those fees equitably among the NSCC Members that use those 
services.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change would have any 
impact, or impose any burden, on competition. As stated above, the 
proposed change would align NSCC's fees with the costs of delivering 
services to its Members, and would not disproportionally impact any 
NSCC Members.

(C) Clearing Agency'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) \7\ of the Act and paragraph (f) of Rule 19b-4 \8\ 
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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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:

[[Page 78928]]

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-2014-13 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSCC-2014-13. 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 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 
10:00 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 Web site at http://dtcc.com/legal/sec-rule-filings.aspx. 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-2014-13 and should be 
submitted on or before January 21, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2014-30591 Filed 12-30-14; 8:45 am]
BILLING CODE 8011-01-P