Document ID: SEC-2009-1450-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; The National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Revise Fees for Certain Insurance and Retirement Processing Services
Posted Date: 2009-10-09T04:00Z

[Federal Register: October 9, 2009 (Volume 74, Number 195)]
[Notices]               
[Page 52278-52279]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09oc09-116]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60765; File No. SR-NSCC-2009-08]

 
Self-Regulatory Organizations; The National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Revise Fees for Certain Insurance and Retirement 
Processing Services

October 1, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on September 10, 2009, 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. 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).
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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 revise fees for 
certain retirement and insurance processing services.

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 such 
statements.\2\
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    \2\ The Commission has modified the text of the summaries 
prepared by NSCC.
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(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 fees for 
certain insurance and retirement processing services provided by NSCC 
to better align fees with the costs of delivering services.\3\
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    \3\ This proposed rule change filing replaces proposed rule 
change filing SR-NSCC-2009-06, which was withdrawn by NSCC on 
September 9, 2009.
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    Effective October 1, 2009, NSCC is adopting an incentive discount 
for Registered Representative (``REP'') and Brokerage Identification 
Number (``BIN'') transactions, a subset of In-Force Transaction types 
that are formally called ``Brokerage Identification Number Change 
Requests,'' ``Brokerage Identification Number Change Confirms,'' 
``Registered Representative Change Requests,'' and ``Registered 
Representative Change Confirms.'' The first $350 that NSCC charges to a 
member each month for such transactions shall be waived. Further, 
effective October 1, 2009, a member that submits any of these 
transaction types will receive a credit equaling 30% of its monthly fee 
for BIN and REP transactions.\4\ The 30% credit will then be applied 
against fees that are charged to a member for NSCC's established 
Insurance and Retirement Products (called ``Core Products''). 
Established products that are designated as Core Products are 
Positions, Commissions, Financial Activity Reporting, Applications/
Subsequent Premiums, and Asset Pricing. The purpose of bundling 
products in this fashion and providing a credit in connection with 
usage of new products is to compensate members for the

[[Page 52279]]

programming and other costs associated with new product adoption.
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    \4\ The credit will be calculated by subtracting the $350 
discount from the member's total monthly BIN and REP fees and then 
multiplying that resulting amount by 30%.
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    In addition, effective October 1, 2009, NSCC is adopting a 
reduction in fees that may be incurred by a member due to extraordinary 
events, such as mergers or mass reconciliations, that generate 
unusually high transaction volume for a limited duration. A member must 
arrange with NSCC in advance for the appropriate reduction in fees in 
such circumstances. With respect to transaction types for which the 
member has no history of prior usage, the credit will be 85% of the 
transaction fees chargeable for the transaction type. There will be an 
additional credit of 5% if the member continues use of the transaction 
type in its usual processing flows after the event. With respect to 
transaction types for which the member has a history of prior usage, 
the credit will be in an amount sufficient to produce an aggregate fee 
that is no more than 120% of the average amount charged to the member 
for such transactions in the prior three months.
    NSCC believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \5\ and the rules and 
regulations thereunder applicable to NSCC because the proposed rule 
change updates NSCC's fee schedule and provides for equitable 
allocation of fees among its members.
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    \5\ 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 pursuant to Section 
19(b)(3)(A)(ii) of the Act \6\ and Rule 19b-4(f)(2) \7\ thereunder 
because the proposed rule change is establishing or changing a due, 
fee, or other charge applicable only to a member. At any time within 
sixty days of the filing of such rule change, the Commission may 
summarily abrogate 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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    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 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

     Electronic comments may be submitted by using the 
Commission's Internet comment form (http://www.sec.gov/rules/
sro.shtml), or
     Send an e-mail to rule-comment@sec.gov. Please include 
File No. SR-NSCC-2009-08 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 Number SR-NSCC-2009-08. 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 Section, 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 the principal office of NSCC and on NSCC's 
Web site at http://www.dtcc.com/legal/rule_filings/nscc/2009.php. 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-2009-08 and should be 
submitted on or before October 30, 2009.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-24350 Filed 10-8-09; 8:45 am]

BILLING CODE 8011-01-P