Document ID: SEC-2011-1137-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2011-08-08T04:00Z

[Federal Register Volume 76, Number 152 (Monday, August 8, 2011)]
[Notices]
[Pages 48192-48193]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19980]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65008; File No. SR-NSCC-2011-06]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to the Analytic Reporting Service Fees

August 2, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on July 21, 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 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 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 Terms of Substance of 
the Proposed Rule Change

    The proposed rule change will add new fees for NSCC's Analytics 
Reporting Service.

II. Self-Regulatory Organization's Statement of 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. 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 listed in Addendum A of NSCC's Rules and Procedures in 
order to establish the fees applicable to Insurance Product Service 
(``IPS'') Members and Limited Members (collectively, ``IPS Members'') 
using NSCC's IPS Analytic Reporting Service.
    On June 20, 2011, NSCC IPS launched its new IPS Analytic Reporting 
Service (``Service'').\4\ NSCC has offered the Service to its IPS 
Members free of charge since its implementation. Effective September 1, 
2011, NSCC will apply the fees applicable to the new Service to IPS 
Members, including IPS Members whom have ``opted-out'' as that term is 
defined in Rule 57 of NSCC's Rules and Procedures.\5\ The fees for the 
Analytic Reporting Service will be as follows:
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    \4\ For a description of NSCC's IPS Analytic Reporting Service, 
refer to Securities Exchange Act Release Nos. 63604 (Dec. 23, 2010), 
75 FR 82115 (Dec. 29, 2010), and 64666 (Jun. 14, 2011), FR 35931 
(Jun. 20, 2011).
    \5\ NSCC's Rules and Procedures can be found at http://www.dtcc.com/legal/rules_proc/nscc_rules.pdf.
    \6\ Roll out of each subsequent Release Version will be based on 
client feedback and the timing of functionality enhancements. Roll 
out of each subsequent Release Version supersedes and replaces the 
immediately preceding Release Version.
    \7\ Tier 1 = Carriers with $25 billion or more in assets; 
Dealers with 10,000 or more financial advisors.

----------------------------------------------------------------------------------------------------------------
                                                                                                      Opt-out
                   Version \6\                      Tier 1 \7\      Tier 2 \8\      Tier 3 \9\        members
----------------------------------------------------------------------------------------------------------------
Release 1.0.....................................          $1,000            $750            $500          $1,667
Release 2.0.....................................           3,000           2,250           1,500           5,000
Release 3.0.....................................           8,000           6,000           4,000          13,333
Release 4.0.....................................          10,500           7,875           5,250          17,500
Release 5.0.....................................          12,000           9,000           6,000          20,000
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    NSCC states 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 
specify the fees associated with a service provided by NSCC and 
provides for the equitable allocation of fees among NSCC's members.
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    \8\ Tier 2 = Carriers with $4 billion or more but less than $25 
billion in assets; Dealers with 3,000 or more, but less than 10,000, 
financial advisors.
    \9\ Tier 3 = Carriers with less than $4 billion in assets; 
Dealers with less than 3,000 financial advisors.
    \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.

[[Page 48193]]

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 upon filing 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 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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    \11\ Supra note 2.
    \12\ 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-comments@sec.gov. Please include 
File No. SR-NSCC-2011-06 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-2011-06. 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 filings also will be available for 
inspection and copying at NSCC's principal office and NSCC's Web site 
at http://www.dtcc.com/downloads/legal/rule_filings/2011/nscc/2011-06.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 No. SR-NSCC-
2011-06 and should be submitted on or before August 29, 2011.

    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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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-19980 Filed 8-5-11; 8:45 am]
BILLING CODE 8011-01-P