Document ID: SEC-2013-0975-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Extension of Review Period of Advance Notice, etc.: National Securities Clearing Corp.
Posted Date: 2013-05-24T04:00Z

[Federal Register Volume 78, Number 101 (Friday, May 24, 2013)]
[Notices]
[Page 31616]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-12404]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69605; File No. SR-NSCC-2013-802]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Extension of Review Period of Advance Notice, as 
Modified by Amendment No. 1, To Institute Supplemental Liquidity 
Deposits to Its Clearing Fund Designed to Increase Liquidity Resources 
To Meet Its Liquidity Needs

May 20, 2013.
    On March 21, 2013, National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission'') advance notice SR-NSCC-2013-802 (``Advance Notice'') 
pursuant to Section 806(e)(1) of the Payment, Clearing, and Settlement 
Supervision Act of 2010 (``Clearing Supervision Act'') \1\ and Rule 
19b-4(n)(1)(i) \2\ thereunder.\3\ On April 19, 2013, NSCC filed with 
the Commission Amendment No. 1 to the Advance Notice.\4\ The Advance 
Notice, as modified by Amendment No. 1, was published for comment in 
the Federal Register on May 1, 2013.\5\ As of May 14, 2013, the 
Commission has received eight comment letters on the proposal contained 
in the Advance Notice and its related proposed rule change.\6\ 
Additionally, on March 19, 2013, prior to filing the Advance Notice, 
NSCC received a comment letter on the proposal directly from an NSCC 
member.\7\
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ NSCC also filed the proposal contained in the Advance Notice 
as a proposed rule change (File No. SR-NSCC-2013-02) under Section 
19(b)(1) of the Securities and Exchange Act of 1934 (``Exchange 
Act'') and Rule 19b-4 thereunder. Release No. 34-69313 (Apr. 4, 
2013), 78 FR 21487 (Apr. 10, 2013). Pursuant to Section 19(b)(2) of 
the Exchange Act, generally, not later than 45 days after the date 
of publication of the proposed rule change in the Federal Register 
or such longer period up to 90 days if the Commission determines 
that a longer period is appropriate and publishes the reasons for 
such determination or the self-regulatory organization consents, the 
Commission will either: (i) by order approve or disapprove the 
proposed rule change, or (ii) institute proceedings to determine 
whether the proposed rule change should be disapproved. 17 U.S.C. 
78s(b)(2)(A). See Release No. 34-69313 (Apr. 4, 2013), 78 FR 21487 
(Apr. 10, 2013). The proposal shall not take effect until all 
regulatory actions required with respect to the proposal are 
completed.
    \4\ See Release No. 34-69451 (Apr. 25, 2013), 78 FR 25496 (May 
1, 2013).
    \5\ Id.
    \6\ See Comments Received on File Nos. SR-NSCC-2013-802 (http://sec.gov/comments/sr-nscc-2013-802/nscc2013802.shtml) and SR-NSCC-
2013-02 (http://sec.gov/comments/sr-nscc-2013-02/nscc201302.shtml). 
Since the proposal contained in the Advance Notice was also filed as 
a proposed rule change, see Release No. 34-69313, supra note 3, the 
Commission is considering all public comments received on the 
proposal regardless of whether the comments are submitted to the 
Advance Notice or the proposed rule change.
    \7\ See Exhibit 2 to File No. SR-NSCC-2013-802 (http://sec.gov/rules/sro/nscc/2013/34-69451-ex2.pdf).
---------------------------------------------------------------------------

    Section 806(e)(1)(G) of the Clearing Supervision Act provides that 
NSCC may implement the changes if it has not received an objection to 
the proposed changes within 60 days of the later of (i) the date that 
the Commission receives the advance notice or (ii) the date that any 
additional information requested by the Commission is received,\8\ 
unless extended as described below.
---------------------------------------------------------------------------

    \8\ See 12 U.S.C. 5465(e)(1)(G).
---------------------------------------------------------------------------

    Pursuant to Section 806(e)(1)(H) of the Clearing Supervision Act, 
the Commission may extend the review period of an advance notice for an 
additional 60 days, if the changes proposed in the advance notice raise 
novel or complex issues, subject to the Commission providing the 
clearing agency with prompt written notice of the extension.\9\
---------------------------------------------------------------------------

    \9\ See 12 U.S.C. 5465(e)(1)(H).
---------------------------------------------------------------------------

    Here, as the Commission has not requested any additional 
information, the date that is 60 days after NSCC filed the Advance 
Notice with the Commission is May 20, 2013. However, the Commission 
finds it appropriate to extend the review period of the Advance Notice, 
as modified by Amendment No. 1, for an additional 60 days under Section 
806(e)(1)(H) of the Clearing Supervision Act.\10\ The Commission finds 
the Advance Notice, as modified by Amendment No. 1, both novel and 
complex because it proposes a rule change that is particularly 
detailed, intricate, multifaceted, and is the first of its kind for a 
registered clearing agency.
---------------------------------------------------------------------------

    \10\ Id.
---------------------------------------------------------------------------

    Accordingly, the Commission, pursuant to Section 806(e)(1)(H) of 
the Clearing Supervision Act,\11\ extends the review period for an 
additional 60 days so that the Commission shall have until July 19, 
2013 to issue an objection or non-objection to the Advance Notice, as 
modified by Amendment No. 1 (File No. SR-NSCC-2013-802).
---------------------------------------------------------------------------

    \11\ Id.

    By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-12404 Filed 5-23-13; 8:45 am]
BILLING CODE 8011-01-P