Self-Regulatory Organizations; National Securities Clearing Corporation; Order Granting Approval of a Proposed Rule Change Relating to the Collecting of Fees for Services Provided by Other Entities, 36683 [E5-3282]
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Federal Register / Vol. 70, No. 121 / Friday, June 24, 2005 / Notices
36683
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.8
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3275 Filed 6–23–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51871; File No. SR–NSCC–
2005–03]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Order Granting Approval
of a Proposed Rule Change Relating to
the Collecting of Fees for Services
Provided by Other Entities
June 17, 2005.
I. Introduction
On April 26, 2005, National Securities
Clearing Corporation (‘‘NSCC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) proposed
rule change SR–NSCC–2005–03
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’).1 Notice of the proposal was
published in the Federal Register on
May 13, 2005.2 No comment letters were
received. For the reasons discussed
below, the Commission is granting
approval of the proposed rule change.
II. Description
NSCC is a subsidiary of the
Depository Trust and Clearing
Corporation (‘‘DTCC’’). Members of
NSCC and their affiliates may from time
to time utilize the services of DTCC
8 17
CFR 200.30–3(a)(12).
1 U.S.C. 78s(b)(1).
2 Securities Exchange Act Release No. 51674,
(May 9, 2005), 70 FR 25636.
VerDate jul<14>2003
19:06 Jun 23, 2005
Jkt 205001
subsidiaries that are not registered as
clearing agencies with the Commission.
Such subsidiaries include Global Asset
Solutions LLC and DTCC Deriv/Serv
LLC. In addition, members of NSCC and
their affiliates may utilize the services of
other third parties. NSCC has
determined that it would be more
efficient and less costly if the fees that
members agree to pay for such services
were collected by NSCC rather than
through independent billing
mechanisms that would otherwise have
to be established by each subsidiary of
DTCC and third party that is not a
registered clearing agency.
NSCC’s rules currently allow for fee
collection arrangements with respect to
collection of fees from members. The
rule change further clarifies this practice
and makes clear that NSCC may
similarly collect fees and charges for
services provided to affiliates of its
members. NSCC will enter into
appropriate agreements with such
subsidiaries and others regarding the
collection of fees.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act, that the
proposed rule change (File No. SR–
NSCC–2005–03) be and hereby is
approved.
III. Discussion
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 NASD. 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 publicly available. All
submissions should refer to File
Number SR–NASD–2005–063 and
should be submitted on or before July
15, 2005.
June 17, 2005.
Section 17A(a)(1)(B) of the Act
provides that inefficient procedures for
clearance and settlement impose
unnecessary costs on investors and
persons facilitating transactions by and
acting on behalf of investors.3 Although
the services provided by unregulated
DTCC subsidiaries and by other third
parties are not core clearance and
settlement services, they are related to
the clearance and settlement operations
of NSCC and of its members. By
streamlining the fee collection process
for these services so that NSCC’s
members will pay these fees to NSCC as
a part of their normal monthly NSCC
bills, the proposed rule change should
help to improve efficiency in the
operations of NSCC members and
thereby should remove unnecessary cost
for NSCC members and for the persons
(i.e., the DTCC subsidiaries and the
other entities providing services to
NSCC members) facilitating transactions
by and acting on behalf of investors.
Accordingly, the Commission finds that
the proposed rule change is consistent
with the requirements of Section 17A of
the Act.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 2 thereunder,
notice is hereby given that on June 13,
2005, the New York Stock Exchange,
Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II, below, which Items have
been prepared by the Exchange. The
proposed rule change has been filed by
the Exchange as establishing or
changing a due, fee, or other charge,
pursuant to Section 19(b)(3)(A)(ii) of the
Act,3 and Rule 19b–4(f)(2)4 thereunder,
which renders the proposal effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and in
particular Section 17A of the Act and
the rules and regulations thereunder.
3 15
PO 00000
U.S.C. 78q–1(a)(A)(B).
Frm 00127
Fmt 4703
Sfmt 4703
For the Commission by the Division of
Market Regulation, pursuant to delegated
authority. 4
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5–3282 Filed 6–23–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–51872; File No. SR–NYSE–
2005–42]
Self-Regulatory Organizations; New
York Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change Relating to a
Specialist Marketing and Investor
Education Fee for Investment
Company Units
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to charge a fee
to specialists allocated listed Investment
Company Units (‘‘ICUs’’) in
circumstances where the Exchange
undertakes to provide funds to a third
party for marketing and investor
education in connection with the listing
of those ICUs. Below is the text of the
4 17
CFR 200.30–3(a)(12).
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).
1 15
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24JNN1
]]>Agencies
[Federal Register Volume 70, Number 121 (Friday, June 24, 2005)]
[Notices]
[Page 36683]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-3282]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-51871; File No. SR-NSCC-2005-03]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Order Granting Approval of a Proposed Rule Change Relating
to the Collecting of Fees for Services Provided by Other Entities
June 17, 2005.
I. Introduction
On April 26, 2005, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') proposed rule change SR-NSCC-2005-03 pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'').\1\
Notice of the proposal was published in the Federal Register on May 13,
2005.\2\ No comment letters were received. For the reasons discussed
below, the Commission is granting approval of the proposed rule change.
---------------------------------------------------------------------------
\1\ U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 51674, (May 9, 2005), 70
FR 25636.
---------------------------------------------------------------------------
II. Description
NSCC is a subsidiary of the Depository Trust and Clearing
Corporation (``DTCC''). Members of NSCC and their affiliates may from
time to time utilize the services of DTCC subsidiaries that are not
registered as clearing agencies with the Commission. Such subsidiaries
include Global Asset Solutions LLC and DTCC Deriv/Serv LLC. In
addition, members of NSCC and their affiliates may utilize the services
of other third parties. NSCC has determined that it would be more
efficient and less costly if the fees that members agree to pay for
such services were collected by NSCC rather than through independent
billing mechanisms that would otherwise have to be established by each
subsidiary of DTCC and third party that is not a registered clearing
agency.
NSCC's rules currently allow for fee collection arrangements with
respect to collection of fees from members. The rule change further
clarifies this practice and makes clear that NSCC may similarly collect
fees and charges for services provided to affiliates of its members.
NSCC will enter into appropriate agreements with such subsidiaries and
others regarding the collection of fees.
III. Discussion
Section 17A(a)(1)(B) of the Act provides that inefficient
procedures for clearance and settlement impose unnecessary costs on
investors and persons facilitating transactions by and acting on behalf
of investors.\3\ Although the services provided by unregulated DTCC
subsidiaries and by other third parties are not core clearance and
settlement services, they are related to the clearance and settlement
operations of NSCC and of its members. By streamlining the fee
collection process for these services so that NSCC's members will pay
these fees to NSCC as a part of their normal monthly NSCC bills, the
proposed rule change should help to improve efficiency in the
operations of NSCC members and thereby should remove unnecessary cost
for NSCC members and for the persons (i.e., the DTCC subsidiaries and
the other entities providing services to NSCC members) facilitating
transactions by and acting on behalf of investors. Accordingly, the
Commission finds that the proposed rule change is consistent with the
requirements of Section 17A of the Act.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78q-1(a)(A)(B).
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular Section 17A of the Act and the rules and regulations
thereunder.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-NSCC-2005-03) be and hereby
is approved.
For the Commission by the Division of Market Regulation,
pursuant to delegated authority. \4\
---------------------------------------------------------------------------
\4\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-3282 Filed 6-23-05; 8:45 am]
BILLING CODE 8010-01-P
