Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Changes to Insurance Processing Service and Revisions to Fee Schedule, 52461-52462 [E5-4805]

Download as PDF Federal Register / Vol. 70, No. 170 / Friday, September 2, 2005 / Notices promote just and equitable principles of trade, and in general, to protect investors and the public interest. The Commission notes that the NASD proposal, as amended, will allow regulators and clearing firms to determine whether data being reported to clearing firms belongs to an introducing firm or a piggybacking firm. The Commission believes that this ability will enhance the surveillance component of NASD’s National Examination Program and may facilitate any future Securities Investor Protection Corporation (‘‘SIPC’’) liquidations of a broker-dealer. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,11 that the proposed rule change (File No. SR– NASD–2005–58), as amended, is approved. For the Commission, by the Division of Market Regulation, pursuant to delegated authority.12 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–4828 Filed 9–1–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52343; File No. SR–NSCC– 2005–09] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Changes to Insurance Processing Service and Revisions to Fee Schedule August 26, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 notice is hereby given that on August 10, 2005, the National Securities Clearing Corporation (‘‘NSCC’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a proposed rule change and on August 22, 2005, amended 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 parties. 11 15 U.S.C. 78s(b)(2). CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 12 17 VerDate Aug<18>2005 18:00 Sep 01, 2005 Jkt 205001 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The purpose of the proposed rule change is to expand the types of Insurance Processing Service (‘‘IPS’’) data that may be transmitted through NSCC pursuant to Rule 57 (‘‘Insurance Processing Service’’) and to amend Addendum A (‘‘Fee Schedule’’) of NSCC’s Rules & Procedures to establish additional IPS fees. 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.2 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change On May 27, 2005, the Commission approved NSCC rule filing SR–NSCC– 2005–02,3 which enhanced NSCC’s Automated Customer Account Transfer Service (‘‘ACATS’’) and IPS rules to provide for Inforce Transactions (‘‘IFT’’), a new IPS service. The enhancements permit delivering and receiving broker-dealers to communicate changes relating to the broker-dealer of record for applicable insurance products using ACATS. The information is transmitted through a link from ACATS to IFT, which conveys the information to the insurance company that issued the eligible insurance product. IFT also communicates to ACATS whether the insurance company has confirmed the change, has rejected the change, or has requested a modification to the request. In addition to establishing fees for the IFT service, the proposed rule change provides for additional IFT administrative account maintenance capabilities that may be used outside of ACATS to perform changes that do not require firm-to-firm account transfers. Initially these functions will allow changing the registered representatives 2 The Commission has modified the text of the summaries prepared by NSCC. 3 Securities Exchange Act Release No. 51753 (May 27, 2005), 70 FR 32859 (June 6, 2005) [SR–NSCC– 2005–02]. PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 52461 and changing the brokerage account number associated with an applicable insurance product. NSCC intends to make additional account maintenance capabilities available to its members through IFT.4 These fees and functions are as follows: (1) Customer Account Transfer Output (‘‘CAT Output’’), which provides ACATS generated insurance registration information to insurance carriers. ($0.95 per transaction, charged to the insurance carrier only); (2) Customer Account Transfer Confirm (‘‘CAT Confirm’’), which allows insurance carriers to confirm back to the broker-dealers insurance registration changes received. ($0.40 per transaction, charged to both the insurance carrier and the receiving broker-dealer); (3) Time Expired Transaction (‘‘TEX’’), which is utilized if either the insurance carrier or broker-dealer has not completed its transaction within 20 business days. In such cases, IPS will generate a TEX transaction to inform both sides that the ACATS transaction has expired. ($0.95 per transaction, charged to both the insurance carrier and the receiving broker-dealer); (4) Beneficiary Update Request (‘‘BEN Request’’), which allows broker-dealers to provide beneficiary information on an insurance policy when the policy contains multiple beneficiaries. (No charge); (5) Beneficiary Confirm (‘‘BEN Confirm’’), which allows the insurance carrier to confirm BEN Request transactions back to the broker-dealer. (No charge); (6) Registered Representative Change Request (‘‘REP Request’’), which allows broker-dealers to change the registered representative on an insurance policy. ($0.70 per transaction, charged to both the insurance carrier and the brokerdealer); (7) Registered Representative Change Confirm (‘‘REP Confirm’’), which allows insurance carriers to confirm back to the broker-dealers REP Request transactions. ($0.30 per transaction, charged to both the insurance carrier and the broker-dealer); 5 (8) Brokerage Identification Number Change Request (‘‘BIN Request’’), which allows broker-dealer to change the brokerage account number affiliated with an insurance policy held at an insurance carrier. ($0.50 per transaction, 4 NSCC will file with the Commission a proposed rule change before implementing further changes to IPS. 5 The REP Request and REP Confirm functions may be used both in conjunction with ACATS and as a stand-alone IPS/IFT function. E:\FR\FM\02SEN1.SGM 02SEN1 52462 Federal Register / Vol. 70, No. 170 / Friday, September 2, 2005 / Notices charged to both the insurance carrier and the broker-dealer); and (9) Brokerage Identification Number Change Confirm (‘‘BIN Confirm’’), which allows the insurance carrier to confirm back to the broker-dealers BIN Request transactions. ($0.20 per transaction, charged to both the insurance carrier and the brokerdealer).6 The above fees apply to both test and production transactions. Fees for production transactions will be effective on September 1, 2005. Fees for test transactions will not be assessed until January 1, 2006. The proposed change is consistent with Section 17A of the Act 7 and the rules and regulations thereunder applicable to NSCC because it effects a change in an existing service that will facilitate the transmission of information for annuity and life insurance products in a standardized and automated format using NSCC’s connectivity. In addition, the proposed rule change establishes fees, providing for the equitable allocation of dues, fees, and other charges among NSCC members. Standardization and automation of information related to annuity and life insurance products can be expected to reduce processing errors and delays that are typically associated with manual processes. (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 foregoing rule change has become effective upon filing pursuant to Section 19(b)(3)(A)(iii) of the Act 8 and Rule 19b–4(f)(4) 9 thereunder because it effects a change in an existing service of NSCC that does not adversely affect the safeguarding of securities or funds in NSCC’s control or for which NSCC is 6 The BIN Request and BIN Confirm functions are stand-alone IPS/IFT functions only. 7 15 U.S.C. 78q–1. 8 15 U.S.C. 78s(b)(3)(A)(iii). 9 17 CFR 240.19b–4(f)(4). VerDate Aug<18>2005 18:00 Sep 01, 2005 Jkt 205001 responsible and does not significantly affect NSCC’s or its members’ respective rights or obligations. At any time within sixty days of the filing of the proposed 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. information that you wish to make available publicly. All submissions should refer to File Number SR–NSCC– 2005–09 and should be submitted on or before September 23, 2005. 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: BILLING CODE 8010–01–P Electronic Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml) or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NSCC–2005–09 on the subject line. For the Commission by the Division of Market Regulation, pursuant to delegated authority.10 Margaret H. McFarland, Deputy Secretary. [FR Doc. E5–4805 Filed 9–1–05; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52351; File No. SR-PCX– 2005–92] Self-Regulatory Organizations; Pacific Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change and Amendment No. 1 Relating to Complex Orders August 26, 2005. 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 August 3, Paper Comments 2005, the Pacific Exchange, Inc. (‘‘PCX’’ • Send paper comments in triplicate or ‘‘Exchange’’) filed with the Securities to Jonathan G. Katz, Secretary, and Exchange Commission Securities and Exchange Commission, (‘‘Commission’’) the proposed rule 100 F Street, NE., Washington, DC change as described in Items I and II 20549–9303. below, which Items have been prepared All submissions should refer to File by the Exchange. On August 17, 2005, Number SR–NSCC–2005–09. This file the PCX submitted Amendment No. 1 to number should be included on the the proposed rule change.3 The PCX subject line if e-mail is used. To help the filed the proposal pursuant to Section Commission process and review your 19(b)(3)(A) of the Act,4 and Rule 19b– comments more efficiently, please use 4(f)(6) thereunder,5 which renders the only one method. The Commission will proposal effective upon filing with the post all comments on the Commission’s Commission.6 The Commission is Internet Web site (https://www.sec.gov/ publishing this notice to solicit rules/sro.shtml). Copies of the comments on the proposed rule change, submission, all subsequent as amended, from interested persons. amendments, all written statements I. Self-Regulatory Organization’s with respect to the proposed rule Statement of the Terms of Substance of change that are filed with the the Proposed Rule Change Commission, and all written communications relating to the The PCX proposes to amend PCX Rule proposed rule change between the 6.91, ‘‘Complex Orders on the PCX Plus Commission and any person, other than System,’’ to better describe the those that may be withheld from the allocation methodology for individual public in accordance with the provisions of 5 U.S.C. 552, will be 10 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). available for inspection and copying in 2 17 CFR 240.19b–4. the Commission’s Public Reference 3 Amendment No. 1 revises the proposal to Section, 100 F Street, NE., Washington, DC 20549. Copies of such filing also will correct a typographical error in the original filing and to make minor changes clarifying the text of the be available for inspection and copying proposed rule and the PCX’s description of the at the principal office of NSCC and on proposal. 4 15 U.S.C. 78s(b)(3)(A). NSCC’s Web site at https:// 5 17 CFR 240.19b–4(f)(6). www.nscc.com. All comments received 6 The PCX has requested that the Commission will be posted without change; the waive both the five-day pre-filing notification Commission does not edit personal requirement and the 30-day operative delay, as identifying information from specified in Rule 19b–4(f)(6)(iii). 17 CFR 240.19b– 4(f)(6)(iii). submissions. You should submit only PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\02SEN1.SGM 02SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 70, Number 170 (Friday, September 2, 2005)]
[Notices]
[Pages 52461-52462]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4805]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-52343; File No. SR-NSCC-2005-09]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change Relating to Changes to Insurance Processing Service and 
Revisions to Fee Schedule

August 26, 2005.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ notice is hereby given that on August 10, 2005, the 
National Securities Clearing Corporation (``NSCC'') filed with the 
Securities and Exchange Commission (``Commission'') a proposed rule 
change and on August 22, 2005, amended 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 parties.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to expand the types of 
Insurance Processing Service (``IPS'') data that may be transmitted 
through NSCC pursuant to Rule 57 (``Insurance Processing Service'') and 
to amend Addendum A (``Fee Schedule'') of NSCC's Rules & Procedures to 
establish additional IPS fees.

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.\2\
---------------------------------------------------------------------------

    \2\ The Commission has modified the text of the summaries 
prepared by NSCC.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    On May 27, 2005, the Commission approved NSCC rule filing SR-NSCC-
2005-02,\3\ which enhanced NSCC's Automated Customer Account Transfer 
Service (``ACATS'') and IPS rules to provide for Inforce Transactions 
(``IFT''), a new IPS service. The enhancements permit delivering and 
receiving broker-dealers to communicate changes relating to the broker-
dealer of record for applicable insurance products using ACATS. The 
information is transmitted through a link from ACATS to IFT, which 
conveys the information to the insurance company that issued the 
eligible insurance product. IFT also communicates to ACATS whether the 
insurance company has confirmed the change, has rejected the change, or 
has requested a modification to the request.
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 51753 (May 27, 2005), 70 
FR 32859 (June 6, 2005) [SR-NSCC-2005-02].
---------------------------------------------------------------------------

    In addition to establishing fees for the IFT service, the proposed 
rule change provides for additional IFT administrative account 
maintenance capabilities that may be used outside of ACATS to perform 
changes that do not require firm-to-firm account transfers. Initially 
these functions will allow changing the registered representatives and 
changing the brokerage account number associated with an applicable 
insurance product. NSCC intends to make additional account maintenance 
capabilities available to its members through IFT.\4\
---------------------------------------------------------------------------

    \4\ NSCC will file with the Commission a proposed rule change 
before implementing further changes to IPS.
---------------------------------------------------------------------------

    These fees and functions are as follows:
    (1) Customer Account Transfer Output (``CAT Output''), which 
provides ACATS generated insurance registration information to 
insurance carriers. ($0.95 per transaction, charged to the insurance 
carrier only);
    (2) Customer Account Transfer Confirm (``CAT Confirm''), which 
allows insurance carriers to confirm back to the broker-dealers 
insurance registration changes received. ($0.40 per transaction, 
charged to both the insurance carrier and the receiving broker-dealer);
    (3) Time Expired Transaction (``TEX''), which is utilized if either 
the insurance carrier or broker-dealer has not completed its 
transaction within 20 business days. In such cases, IPS will generate a 
TEX transaction to inform both sides that the ACATS transaction has 
expired. ($0.95 per transaction, charged to both the insurance carrier 
and the receiving broker-dealer);
    (4) Beneficiary Update Request (``BEN Request''), which allows 
broker-dealers to provide beneficiary information on an insurance 
policy when the policy contains multiple beneficiaries. (No charge);
    (5) Beneficiary Confirm (``BEN Confirm''), which allows the 
insurance carrier to confirm BEN Request transactions back to the 
broker-dealer. (No charge);
    (6) Registered Representative Change Request (``REP Request''), 
which allows broker-dealers to change the registered representative on 
an insurance policy. ($0.70 per transaction, charged to both the 
insurance carrier and the broker-dealer);
    (7) Registered Representative Change Confirm (``REP Confirm''), 
which allows insurance carriers to confirm back to the broker-dealers 
REP Request transactions. ($0.30 per transaction, charged to both the 
insurance carrier and the broker-dealer); \5\
---------------------------------------------------------------------------

    \5\ The REP Request and REP Confirm functions may be used both 
in conjunction with ACATS and as a stand-alone IPS/IFT function.
---------------------------------------------------------------------------

    (8) Brokerage Identification Number Change Request (``BIN 
Request''), which allows broker-dealer to change the brokerage account 
number affiliated with an insurance policy held at an insurance 
carrier. ($0.50 per transaction,

[[Page 52462]]

charged to both the insurance carrier and the broker-dealer); and
    (9) Brokerage Identification Number Change Confirm (``BIN 
Confirm''), which allows the insurance carrier to confirm back to the 
broker-dealers BIN Request transactions. ($0.20 per transaction, 
charged to both the insurance carrier and the broker-dealer).\6\
---------------------------------------------------------------------------

    \6\ The BIN Request and BIN Confirm functions are stand-alone 
IPS/IFT functions only.
---------------------------------------------------------------------------

    The above fees apply to both test and production transactions. Fees 
for production transactions will be effective on September 1, 2005. 
Fees for test transactions will not be assessed until January 1, 2006.
    The proposed change is consistent with Section 17A of the Act \7\ 
and the rules and regulations thereunder applicable to NSCC because it 
effects a change in an existing service that will facilitate the 
transmission of information for annuity and life insurance products in 
a standardized and automated format using NSCC's connectivity. In 
addition, the proposed rule change establishes fees, providing for the 
equitable allocation of dues, fees, and other charges among NSCC 
members. Standardization and automation of information related to 
annuity and life insurance products can be expected to reduce 
processing errors and delays that are typically associated with manual 
processes.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

(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 foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(4) \9\ 
thereunder because it effects a change in an existing service of NSCC 
that does not adversely affect the safeguarding of securities or funds 
in NSCC's control or for which NSCC is responsible and does not 
significantly affect NSCC's or its members' respective rights or 
obligations. At any time within sixty days of the filing of the 
proposed 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------

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 (https://
www.sec.gov/rules/sro.shtml) or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-NSCC-2005-09 on the subject line.

Paper Comments

     Send paper comments in triplicate to Jonathan G. Katz, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-9303.
    All submissions should refer to File Number SR-NSCC-2005-09. 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 (https://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 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 NSCC and on 
NSCC's Web site at https://www.nscc.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-2005-09 and should be submitted on 
or before September 23, 2005.
---------------------------------------------------------------------------

    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission by the Division of Market Regulation, 
pursuant to delegated authority.\10\
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-4805 Filed 9-1-05; 8:45 am]
BILLING CODE 8010-01-P

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