Document ID: SEC-2013-0952-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2013-05-22T04:00Z

[Federal Register Volume 78, Number 99 (Wednesday, May 22, 2013)]
[Notices]
[Pages 30362-30363]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-12166]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69596; File No. SR-NSCC-2013-06]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Modify Fees Related to Portfolio Composition File 
Reporting in Addendum A of Its Rules and Procedures

May 16, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on May 3, 2013, 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. NSCC filed the proposed 
rule change pursuant to Section 19(b)(3)(A)(ii) \3\ of the Act and Rule 
19b-4(f)(2) \4\ thereunder, so that the proposed rule change was 
effective upon filing with the Commission. 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).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change is to modify the fee schedule related to 
NSCC's Portfolio Composition File Reporting in Addendum A of NSCC's 
Rules and Procedures (``Rules''), as described below.

II. Clearing Agency'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.\5\
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    \5\ 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

1. Purpose
    The purpose of the proposed rule change is for NSCC to revise its 
fee schedule (as listed in Addendum A of its Rules \6\) as it relates 
to charges for reports on Index Receipt Portfolio Composition Files. 
Portfolio Composition File reports, as currently offered, contain 
information on all Index Receipt Portfolios eligible for processing by 
NSCC (``Legacy Files''). NSCC releases two Legacy Files each business 
day--one file for domestic portfolios and one for foreign portfolios. 
The files are offered both as machine readable output (``MRO'') and 
print image files. The fee associated with a Member's subscription to 
the Legacy Files is $125 per file per month.
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    \6\ NSCC Rules, Addendum A, http://dtcc.com/legal/rules_proc/nscc_rules.pdf.
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    Pursuant to this proposed rule change, NSCC implemented new fees 
for the offering of an enhanced reporting interface that allows Members 
to receive a Portfolio Composition File that contains only the Index 
Receipt

[[Page 30363]]

Portfolios to which a Member subscribes (``Enhanced Files''). Fees for 
the Enhanced Files are charged in relation to the number of portfolios 
received by the Member on an average, daily basis per month. The 
Enhanced Files are available as MRO files and as a web-based interface 
from which Participants may download and print reports.\7\
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    \7\ The Enhanced Files also allow Members to view additional 
information with respect to a portfolio, including breakdowns of 
asset class and ``cash-in lieu'' components that are not otherwise 
NSCC-eligible.
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    NSCC continues to make available to Members subscriptions to Legacy 
Files at the current fee rates.
Revision to Fee Schedule
    Pursuant to the fee schedule in Addendum A of NSCC's Rules, Members 
are currently charged $125 per Legacy File.\8\ While the availability 
of and fees for Legacy Files are remaining unchanged, NSCC is now 
charging the following fees to Members who subscribe to the Enhanced 
Files:
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    \8\ See NSCC Rules, Addendum A, supra note 6.
    \9\ ``Units'' refers to the number of portfolio subscriptions 
for each billing month. Unit charges are calculated by applying a 
tiered fee structure to the average daily number of units subscribed 
to by the Member in the billing month.

         Subscription-Based Portfolio Composition File Reporting
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                   Fees                               Units \9\
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$5........................................  the first zero to 200
                                             average daily units per
                                             month.
$3........................................  the next 300 average daily
                                             units per month (201-500).
$2........................................  for all average daily units
                                             above 500 per month.
------------------------------------------------------------------------

    The proposed rule change relates only to the enhanced reporting of 
Portfolio Composition Files and does not otherwise impact Index Receipt 
processing functionality.
Implementation Timeframe
    The fee changes described above took effect on May 9, 2013.
Proposed Rule Changes
    NSCC is amending Addendum A of its Rules to include the fee 
schedule for ``Subscription-based Portfolio Composition File 
Reporting,'' as shown above. No other changes to the Rules are 
contemplated by this proposed rule change.
2. Statutory Basis
    NSCC believes that the proposed rule change is consistent with the 
requirements of the Act, as amended, specifically Section 
17A(b)(3)(D),\10\ and the rules and regulations thereunder applicable 
to NSCC because the change is aligning fees with the costs of 
delivering the additional reports described above, thus providing for 
the equitable allocation of reasonable fees among NSCC's Members.
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    \10\ 15 U.S.C. 78q-1(b)(3)(D).
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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 forgoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \11\ and Rule 19b-4(f)(2) \12\ thereunder. 
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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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 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 email to rule-comments@sec.gov. Please include 
File No. SR-NSCC-2013-06 on the subject line.

Paper Comments

     Send 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-2013-06. This file 
number should be included on the subject line if email 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 
10:00 a.m. and 3:00 p.m. Copies of such filings will also be available 
for inspection and copying at the principal office of NSCC and on 
NSCC's Web site at http://dtcc.com/legal/rule_filings/nscc/2013.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-2013-06 and 
should be submitted on or before June 12, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-12166 Filed 5-21-13; 8:45 am]
BILLING CODE 8011-01-P