Document ID: SEC-2006-0055-0001
Agency: sec
Document Type: Notice
Title: Self-regulatory organizations; proposed rule changes: National Securities Clearing Corp.
Posted Date: 2006-01-18T05:00Z

[Federal Register: January 18, 2006 (Volume 71, Number 11)]
[Notices]               
[Page 2969-2970]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja06-87]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-53099; File No. SR-NSCC-2005-16]

 
Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Revise the Fee Structure of NSCC

January 11, 2006.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on December 22, 2005, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change 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) 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 parties.
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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 the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change consists of changes to the fee structure 
of NSCC.

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 these 
statements.\4\
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    \4\ 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 update the fees of 
NSCC. The rule change makes the following changes to NSCC's fees.
     Change ACATS Transfer Initiation Form (``TIF'') input fees 
to realign fees with costs. The fee for standard TIF input will be 
reduced from $.85 to $.40 per TIF entered, and a new fee of $.40 will 
be imposed for non-standard TIF input.
     Increase the fee for ACATS account transfer rejects from 
$.25 to $1.00.
     Create a fee for ACATS insurance registrations of $.25 per 
insurance registration submitted, which is charged to the receiver and 
the deliverer.
     Implement fee reductions in trade comparison and recording 
services, including: (a) A reduction in the trade recording fee for 
each side of stock, warrant, or right item originally compared by an 
other party from $.0025 to $.0015 per 100 shares with the minimum fee 
reduced from $.0075 to $.0045 per 100 shares and the maximum fee 
reduced from $.15 to $.09 per 100 shares and (b) a reduction in the 
flip trade fee from $.025 to $.005 per side.
     Reduce the trade clearance netting fee from $0.015 per 
side to $.007 per side.
     Reduce the mutual fund Fund/SERV settling transaction fee 
from $.175 to $.110 per side.
     Restructure the mutual fund networking fees to eliminate 
the two account base fees and position record fees of $.02 per month/
per side, $.01 per month/per side, and $1.50 per month/per thousand 
subaccount records, respectively, and replace them with an activity fee 
of $.0025 per transaction.\5\
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    \5\ The new mutual fund networking fee will go into effect on 
February 1, 2006.
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    In addition, the proposed rule change will increase settlement 
service fees for improved cost recovery as follows:

------------------------------------------------------------------------
                 Service                    Current fee     Revised fee
------------------------------------------------------------------------
Envelope Settlement Service:
    Intra-city deliveries
        Night Zone......................           $1.00           $2.00
        Early a.m. Zone.................            1.50            3.00
        Late a.m. Zone..................            2.50            5.00
        Reclamations....................            1.00            5.00
    ESS Receives........................            1.00            2.00
    Inter-City Deliveries and Receives              2.50            5.00
     (IESS).............................
Funds Only Settlement Service:
    Deliveries or Reclamations..........            1.00            5.00
    Receives............................            1.00            5.00
Dividend Settlement Service.............             .30            1.00
------------------------------------------------------------------------

[[Page 2970]]

    Except as otherwise noted, the proposed fee changes will become 
effective on January 1, 2006.
    The proposed change is consistent with Section 17A of the Act \6\ 
and the rules and regulations thereunder applicable to NSCC because it 
will enable NSCC to equitably allocate costs among its members.
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    \6\ 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 upon filing pursuant 
to Section 19(b)(3)(A)(ii) of the Act \7\ and Rule 19b-4(f)(2) \8\ 
thereunder because it establishes or changes a due, fee, or other 
charge. At any time within sixty days of the filing of the proposed 
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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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 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

     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 Number SR-NSCC-2005-16 on the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.

All submissions should refer to File Number SR-NSCC-2005-16. 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. Copies of such filing also will be available 
for inspection and copying at the principal office of NSCC and on 
NSCC's Web site at http://www.nscc.com. 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-2005-16 and should be submitted on 
or before February 8, 2006.

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Nancy M. Morris,
Secretary.
[FR Doc. E6-466 Filed 1-17-06; 8:45 am]

BILLING CODE 8010-01-P