[Federal Register Volume 67, Number 212 (Friday, November 1, 2002)]
[Notices]
[Pages 66696-66697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27803]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-46720; File No. SR-NSCC-2002-03]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Revising the Fee Schedule
October 25, 2002.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on May 30, 2002, 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 proposed rule change will establish a base participation fee
for NSCC participants using NSCC's Mutual Fund Services Profile
service.
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
[[Page 66697]]
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 establish a base
participation fee for NSCC participants using NSCC's Mutual Fund
Services Profile service (``Profile service'').\3\ The Profile service
was introduced in 1997 and in 2000 was made accessible through the
internet via NSCC's PC WebDirect system. Since its introduction, NSCC
has provided the service without charge.
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\3\ The Profile service is a data base system that enables
mutual fund industry participant to exchange accurate and timely
information on daily prices and dividend rates, firm and fund
members, individual security identifications and processing
capabilities, and projected and actual distribution declarations.
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However, consistent with its goal to align fees with costs and to
reflect the numerous enhancements that NSCC has made to the service,
NSCC is establishing a Profile membership fee payable by the users of
the service. Accordingly, participating settling members and fund
members will now be charged a $325 monthly membership fee to use the
Profile service, regardless of usage.\4\ This fee was effective July 1,
2002.
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\4\ Because the Profile service is not a transaction-based
execution system but rather an informational data base resource,
NSCC believes that a monthly usage fee is the most practical way to
allocate the costs of the service.
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NSCC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
because it provides for the equitable allocation of dues, fees, and
other charges among NSCC's participants.
B. Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will have an
impact on or impose a burden on competition.
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 has notified participants who use the
Profile service of the new fee charges and will notify 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\ thereunder
because the proposed rule change is changing a due, fee, or other
charge. 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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\5\ 15 U.S.C. 78s(b)(3)(A)(ii).
\6\ 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. Persons making written submissions
should file six copies thereof with the Secretary, U.S. Securities and
Exchange Commission, 450 Fifth Street NW, Washington, DC 20549-0609.
Copies of the submission, all subsequent amendments, all written
statements with respect to the rule proposal that are filed with the
Commission, and all written communications relating to the rule
proposal 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 Room in Washington, DC. Copies of such
filing will also be available for inspection and copying at NSCC's
principal office. All submissions should refer to File No. SR-NSCC-
2002-03 and should be submitted by November 22, 2002.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-27803 Filed 10-31-02; 8:45 am]
BILLING CODE 8010-01-P