Document ID: SEC-2013-0023-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2013-01-08T05:00Z

[Federal Register Volume 78, Number 5 (Tuesday, January 8, 2013)]
[Notices]
[Pages 1292-1293]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00083]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68562; File No. SR-NSCC-2012-11]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Revise Its Fee Structure as It Relates to Certain 
Insurance and Retirement Processing Services and To Remove Reference to 
and the Fees Related to FundSPEED, a Discontinued Service

January 2, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given that 
on December 21, 2012, the 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)(ii) \3\ 
of the Act and Rule 19b-4(f)(2) \4\ thereunder, so that 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)(ii).
    \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 is to revise Addendum A (Fee Structure) of 
NSCC's Rules & Procedures (``Rules'') as it relates to certain 
Insurance and Retirement Services (``I&RS'') fees and remove reference 
to FundSPEED, a discontinued service.

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.\5\
---------------------------------------------------------------------------

    \5\ The Commission has modified the text of the summaries 
prepared by NSCC.
---------------------------------------------------------------------------

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

(a) Proposal Overview
    The purpose of the proposed rule change is to revise NSCC's fee 
schedule (as listed in Addendum A of the Rules), as it relates to 
certain I&RS, to replace the current fee structure with a tiered fee 
structure. This change is being made in order to simplify the fee 
schedule with respect to these services. In connection with this 
change, certain I&RS fees have been changed in order to align those 
fees with the costs of delivering the related services, with the 
expectation that the fee changes, in the aggregate, will be revenue 
neutral to NSCC.
    The Addendum A I&RS fee schedule changes are:
     Eliminating the Business Attachment subpart and associated 
fees;
     Eliminating the Licensing and Appointments subpart and 
associated fees;
     Eliminating the Request for Replacement subpart and 
associated fees;
     Eliminating the Request for Replacement Status (including 
incremental statuses) subpart and associated fees;
     Eliminating the Inforce Transaction Fees section and 
associated fees; and
     Adding an Other Services Fees section, comprised of the 
following five tiers and associated fees and services:
    1. TIER 1--$0.05--All Attachments (per attachment, per side);
    2. TIER 2--$0.15--Licensing and Appointments (L&A) Periodic 
Reconciliation (per item);
    3. TIER 3--$0.35--Licensing and Appointments (L&A) Transaction (per 
item), Registered Representative Change Confirm (per transaction, per 
side), Brokerage Identification Number Change Request (per transaction, 
per side), Brokerage Identification Number Change Confirm (per 
transaction, per side), Values Inquiry (per inquiry, includes response, 
per side);
    4. TIER 4--$0.65--Customer Account Transfer Output (per 
transaction, charged to Insurance Carrier/Retirement Services Member 
only), Customer Account Transfer Confirm (per transaction, per side), 
Settlement Processing (per transaction, per side), Request for 
Replacement Status (a/k/a Pending Case Status)--Receiving Carrier (per 
Request for Replacement Status), Request for Replacement Status (a/k/a 
Pending Case Status)--Deliverer (per Request for Replacement Status), 
Registered Representative Change Request (per transaction, per side), 
Time Expired Transaction (per transaction, per side); and
    5. TIER 5--$1.25--Fund Transfer (per request, per side), 
Withdrawals (per request, per side), Arrangements (per request, per 
side), Request for Replacement--Delivering Carrier (per request), 
Request for Replacement--Receiving Carrier (per request). NSCC is also 
removing reference to the I&RS ``Beneficiary Update Request'' and 
``Beneficiary Confirm'' in Addendum A of the Rules. These functions do 
not require a line item in the fee schedule because there is no charge 
for these services.
    In addition, NSCC is making a technical change to remove from 
Addendum A of the Rules reference to and the fees related to FundSPEED, 
as this service was discontinued.
    The above changes took effect on January 1, 2013.
(b) Statutory Basis
    NSCC believes the proposed rule is consistent with the requirements 
of the Act, specifically Section 17A(b)(3)(F),\6\ and the rules and 
regulations thereunder applicable to NSCC because it updates NSCC's fee 
schedule to align fees with the costs of delivering services. As such, 
it provides for the equitable allocation of fees among NSCC's Members.
---------------------------------------------------------------------------

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

(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 1293]]

(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 forgoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \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)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 email to rule-comments@sec.gov. Please include 
File No. SR-NSCC-2012-11 on the subject line.

Paper Comments

     Send 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-2012-11. 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 such filings will also 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/2012/nscc/SRO-NSCC-2012-11.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-2012-11 
and should be submitted on or before January 29, 2013.

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

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

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-00083 Filed 1-7-13; 8:45 am]
BILLING CODE 8011-01-P