Document ID: SEC-2010-1855-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2010-12-08T05:00Z

[Federal Register Volume 75, Number 235 (Wednesday, December 8, 2010)]
[Notices]
[Pages 76512-76513]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-30881]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63417; File No. SR-NSCC-2010-17]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Discontinue the Cost Basis Reporting Service

December 2, 2010.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on November 23, 2010, 
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.\2\ NSCC filed the proposed rule change 
pursuant to Section 19(b)(3)(A)(iii) and Rule 19b-4(f)(4) thereunder so 
that the proposed rule change was effective upon filing with the 
Commission.\3\ 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\ The text of the proposed rule change is attached as Exhibit 
5 to NSCC's filing, which is available at http://www.dtcc.com/downloads/legal/rule_filings/2010/nscc/2010-17.pdf.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii) and 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The proposed rule change will discontinue NSCC's Cost Basis 
Reporting Service (``CBRS'').

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 the 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 delete the rule 
regarding NSCC's CBRS as the CBRS offered by NSCC will be terminated. 
The effective date of the termination of CBRS as a NSCC service 
offering will be December 10, 2010.
    For purposes of efficiency and enhanced customer service, DTCC 
Solutions LLC (``DTCC Solutions''), a wholly-owned subsidiary of The 
Depository Trust & Clearing Corporation, which offers services similar 
in nature to the CBRS, will offer the CBRS. CBRS as offered by DTCC 
Solutions will support a broader group of financial institutions and 
entities that are currently not eligible to become NSCC members, such 
as transfer agents and securities issuers. NSCC believes that 
discontinuing CBRS at NSCC and reestablishing the service at DTCC 
Solutions will not disadvantage NSCC members in any way.

[[Page 76513]]

    Section 17A(b)(3)(F) of the Act requires, among other things, that 
the rules of a clearing agency be designed to remove impediments to and 
perfect the mechanism of a national system for prompt and accurate 
clearance and settlement of securities transactions, to foster 
cooperation and coordination with persons engaged in the clearance and 
settlement of securities transactions, and, in general, to protect 
investors and the public interest.\5\ NSCC believes that the proposed 
rule change is consistent with these requirements of Section 17A of the 
Act \6\ and the rules and regulations thereunder that are applicable to 
NSCC because discontinuing the CBRS will allow for more efficient 
allocation of NSCC's resources.
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    \5\ 15 U.S.C. 78q-1(b)(3)(F).
    \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 impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants, or Others

    No written comments relating to the proposed rule change have 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)(iii) of the Act \7\ and Rule 19b-4(f)(4) \8\ 
thereunder because it effects a change in an existing service of NSCC 
that: (i) Does not adversely affect the safeguarding of securities or 
funds in the custody or control of NSCC or for which it is responsible 
and (ii) does not significantly affect the respective rights or 
obligations of the clearing agency or persons using the service. At any 
time within sixty days of the filing of such 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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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(4).
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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-2010-17 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-2010-17. 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 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, http://www.dtcc.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-2010-17 and should be submitted on or before 
December 29, 2010.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-30881 Filed 12-7-10; 8:45 am]
BILLING CODE 8011-01-P