Document ID: SEC-2011-0963-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2011-07-08T04:00Z

[Federal Register Volume 76, Number 131 (Friday, July 8, 2011)]
[Notices]
[Pages 40409-40410]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-17187]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64798; File No. SR-NSCC-2011-05]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Fees Associated With the Obligation Warehouse 
Service

July 1, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on June 20, 2011, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change 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 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 Terms of Substance of 
the Proposed Rule Change

    The proposed rule change will revise NSCC's trade recording and 
recording service fees related to the new Obligation Warehouse 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 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 set forth in Addendum A of NSCC's Rules and Procedures) to 
add fees for NSCC's Obligation Warehouse service, a new functionality 
that was designed to enhance and replace NSCC's legacy Reconfirmation 
and Pricing Service (RECAPS).\4\ The Obligation Warehouse launched on 
March 4, 2011, and the fees included in this proposed rule change will 
be effective on July 1, 2011.
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    \4\ Securities Exchange Act Release No. 63588 (Dec. 21, 2010), 
75 FR 82112 (Dec. 29, 2010).
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    The proposal includes fees for: (1) Warehousing of each compared 
item; (2) matching of each submission; (3) each pending comparison 
advisory (aged days two through four); (4) each pending comparison 
advisory (aged five days are more); (5) closure and delivery of an item 
to CNS; (6) withholding of closure and delivery of an item to CNS; (7) 
applying mandatory corporate action events to compared obligations; (8) 
delivery notification request advisories informing a party to an 
Obligation Warehouse obligation that the submitting party has 
acknowledged that obligation has settled (aged two days or older); (9) 
pending cancel request advisories requesting that a previously compared 
Obligation Warehouse obligation be cancelled (aged two days or older); 
and (10) each obligation closed per RECAPS cycle. The fee for each 
pending comparison advisory (aged five days or more) will be 
implemented in a tiered, phased-in manner over the course of six months 
as Members become familiar with the functionality of the Obligation 
Warehouse. Details regarding all fee changes mentioned above are 
available in the revised Addendum A set forth in Exhibit 5 to NSCC's 
rule filing, which can be found on NSCC's Web site (http://www.dtcc.com/legal/rule_filings/nscc/2011.php).

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

    NSCC has not solicited or received written comments relating to the 
proposed rule change. NSCC will notify

[[Page 40410]]

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 pursuant to Section 
19(b)(3)(A)(ii) of the Act \5\ and Rule 19b-4(f)(2) \6\ 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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    \5\ Supra note 2.
    \6\ 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-2011-05 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-2011-05. 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 
(http://www.dtcc.com/legal/rule_filings/nscc/2011.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 No. SR-NSCC-2011-05 and should be 
submitted on or before July 29, 2011.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-17187 Filed 7-7-11; 8:45 am]
BILLING CODE 8011-01-P