Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Allow the Transfer and Reregistration of Fund/SERV Eligible Fund Positions to and From a Financial Intermediary and a Mutual Fund Company, 5879-5880 [E9-2120]
Download as PDF
<![CDATA[
Federal Register / Vol. 74, No. 20 / Monday, February 2, 2009 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59302; File No. SR–NSCC–
2008–12]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Allow the Transfer and
Reregistration of Fund/SERV Eligible
Fund Positions to and From a
Financial Intermediary and a Mutual
Fund Company
January 27, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 notice is hereby given that on
December 23, 2008, the National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which items
have been prepared primarily by NSCC.
NSCC filed the proposal pursuant to
Section 19(b)(3)(A)(iii) of the Act 2 and
Rule 19b–4(f)(4) 3 thereunder so that the
proposal was effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the rule change from
interested parties.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The purpose of the rule change is to
allow for transfer and reregistration of
Fund/SERV Eligible Fund positions to
and from a financial intermediary and a
mutual fund company.
dwashington3 on PROD1PC60 with NOTICES
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
1 15
U.S.C. 78s(b)(1).
U.S.C. 78s(b)(3)(A)(iii).
3 17 CFR 240.19b–4(f)(4).
4 The Commission has modified the text of the
summaries prepared by NSCC.
2 15
VerDate Nov<24>2008
15:03 Jan 30, 2009
Jkt 217001
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Currently NSCC’s rules permit the
transfer of Fund/SERV eligible shares
from one member to another member
through NSCC’s Automated Customer
Account Transfer Service (‘‘ACATS’’) or
from one fund member to another fund
member through the Transfer of
Retirement Assets (‘‘ToRA’’) service. In
an effort to further standardize and
automate the account transfer and
reregistration process between members
and mutual fund companies, NSCC is
proposing to accommodate the transfer
of customer mutual fund share
registration: (i) Held by a customer
directly at a mutual fund company to be
reregistered in the name of a financial
intermediary and (ii) held by a financial
intermediary to be reregistered as a
direct customer position at the mutual
fund company. A member can request
the transfer of registration in the
capacity of the party receiving the
reregistration or in the capacity of the
party transferring the registration. The
contra-side NSCC fund member must
accept the reregistration request in order
for NSCC to process it.
NSCC is also proposing that, unless
the parties agree otherwise, the member
and fund member will comply with
certain legal responsibilities associated
with the reregistration. The member will
agree that in initiating the request it has
obtained the requisite authorization
from the account holder and that it will
provide a copy of it to the fund member
upon request. The member also will
indemnify the fund member for any
liabilities incurred in or associated with
the request other than those relating to
the negligence or misconduct of the
fund member. In connection with
reregistrations of IRA and other taxdeferred accounts, a member that makes
the transfer request in its capacity as a
successor custodian agrees that it is so
qualified under the provisions of the
Internal Revenue Code. NSCC is also
proposing that the members will agree
that any dispute between them relating
to these provisions will be resolved
directly between them and that NSCC is
not a party to such dispute and has no
responsibility with respect to the
enforcement or satisfaction of such
provisions. In addition, the submission
or processing of a transfer transaction
through NSCC will not extinguish or
otherwise affect any of the participants’
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
5879
legal rights arising out of the
transaction.5
The proposed rule change is
consistent with Section 17A of the Act,6
as amended, because it will reduce the
likelihood of manual processing errors,
will lower costs, and will reduce the
time needed to complete the transfer of
customer mutual fund share
registrations, thereby promoting the
prompt and accurate clearance and
settlement of reregistration of mutual
fund share positions processed through
NSCC’s Fund/SERV service.
(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 proposed 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 the proposed rule
change effects a change in an existing
service of a registered clearing agency
that: (i) Does not adversely affect the
safeguarding of securities or funds in
the custody or control of the clearing
agency 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 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.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
5 Similar provisions are contained in NSCC rules
relating to other mutual fund services. See, e.g.,
NSCC Rule 50, Section 17 and NSCC Rule 52,
Section 46.
6 15 U.S.C. 78q–1.
7 15 U.S.C. 78s(b)(3)(A)(iii).
8 17 CFR 240.19b–4(f)(4).
E:\FR\FM\02FEN1.SGM
02FEN1
5880
Federal Register / Vol. 74, No. 20 / Monday, February 2, 2009 / Notices
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
BILLING CODE 8011–01–P
• 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–2008–12 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Elizabeth M. Murphy,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
dwashington3 on PROD1PC60 with NOTICES
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9–2120 Filed 1–30–09; 8:45 am]
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–59270; File No. SR–
NYSEArca–2009–01]
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
NYSE Arca, Inc. Relating to Reduction
of Annual Fee for Certain Issues Listed
Under Rule 5.2(j)(6).
January 21, 2009.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
All submissions should refer to File
notice is hereby given that, on January
Number SR–NSCC–2008–12. This file
6, 2009, NYSE Arca, Inc. (‘‘NYSE Arca’’
number should be included on the
subject line if e-mail is used. To help the or the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
Commission process and review your
(the ‘‘Commission’’) the proposed rule
comments more efficiently, please use
only one method. The Commission will change as described in Items I, II, and
III below, which Items have been
post all comments on the Commission’s
prepared by the self-regulatory
Internet Web site (https://www.sec.gov/
organization. The Commission is
rules/sro.shtml). Copies of the
publishing this notice to solicit
submission, all subsequent
comments on the proposed rule change
amendments, all written statements
from interested persons.
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
proposed rule change between the
The Exchange, through its wholly
Commission and any person, other than owned subsidiary NYSE Arca Equities,
Inc. (‘‘NYSE Arca Equities’’), is
those that may be withheld from the
proposing to amend its Schedule of Fees
public in accordance with the
and Charges for Exchange Services
provisions of 5 U.S.C. 552, will be
(‘‘Fee Schedule’’) to revise the Annual
available for inspection and copying in
Fees applicable to securities listed in
the Commission’s Public Reference
calendar year 2009 under Rule 5.2(j)(6)
Room, 100 F Street, NE., Washington,
on NYSE Arca, LLC (‘‘NYSE Arca
DC 20549, on official business days
between the hours of 10 a.m. and 3 p.m. Marketplace’’), the equities facility of
NYSE Arca Equities. The text of the
Copies of such filings also will be
proposed rule change is available on the
available for inspection and copying at
Exchange’s Web Site at https://
the principal office of NSCC and on
www.nyx.com, at the Exchange’s
NSCC’s Web site at https://
principal office, and at the
www.dtcc.com/downloads/legal/
Commission’s public reference room.
rule_filings/2008/nscc/2008-12.pdf. All
II. Self-Regulatory Organization’s
comments received will be posted
Statement of the Purpose of, and
without change; the Commission does
Statutory Basis for, the Proposed Rule
not edit personal identifying
Change
information from submissions. You
should submit only information that
In its filing with the Commission, the
you wish to make available publicly. All self-regulatory organization included
submissions should refer to File
statements concerning the purpose of,
Number SR–NSCC–2008–12 and should
9 17 CFR 200.30–3(a)(12).
be submitted on or before February 23,
1 15 U.S.C. 78s(b)(1).
2009.
2 15
3 17
VerDate Nov<24>2008
15:03 Jan 30, 2009
Jkt 217001
PO 00000
U.S.C. 78a.
CFR 240.19b–4.
Frm 00069
Fmt 4703
Sfmt 4703
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
NYSE Arca has determined to amend
the Exchange’s Fee Schedule to revise
the Annual Fee applicable to securities
listed on the NYSE Arca Marketplace in
calendar year 2009 under Rule 5.2(j)(6)
(Equity Index-Linked Securities,
Commodity-Linked Securities,
Currency-Linked Securities, Fixed
Income Index-Linked Securities,
Futures-Linked Securities and
Multifactor Indexed-Linked Securities).
Specifically, the Exchange proposes to
add new footnote 10 to the Fee
Schedule to state that, during 2009, the
Annual Fee for an issue of securities
listed under Rule 5.2(j)(6) of up to
500,000 shares outstanding will be
$5,000, pro-rated based on days
remaining in 2009.
Under the current Fee Schedule for
Structured Products, which include
securities listed under Rule 5.2(j)(6), the
Annual Fee ranges from $10,000 to
$55,000, based on the total number of
securities outstanding per listed issue.
The current Annual Fee for issues with
up to 6 million shares outstanding is
$10,000. The proposed reduced Annual
Fee would apply for calendar year 2009
to issues newly listed on the NYSE Arca
Marketplace beginning as of January 1,
2009, and would not apply to issues
listed prior to or after calendar year
2009.
As an example of how the Annual Fee
would apply to such issues, if an Equity
Index-Linked Security lists on the NYSE
Arca Marketplace on July 1, 2009 with
500,000 shares outstanding, such
security would pay a pro-rated Annual
Fee for 2009 of $2500 (1⁄2 × $5,000).
The Exchange believes that
temporarily reducing the Annual Fee for
newly listed securities listed under Rule
5.2(j)(6), which include Exchange
Traded Notes or ‘‘ETNs’’, will provide
an incentive for issuers to introduce and
list more such products on the NYSE
Arca Marketplace in 2009, thereby
increasing competition among such
products.
E:\FR\FM\02FEN1.SGM
02FEN1
]]>Agencies
[Federal Register Volume 74, Number 20 (Monday, February 2, 2009)]
[Notices]
[Pages 5879-5880]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2120]
[[Page 5879]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-59302; File No. SR-NSCC-2008-12]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Allow the Transfer and Reregistration of Fund/SERV
Eligible Fund Positions to and From a Financial Intermediary and a
Mutual Fund Company
January 27, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 23, 2008, the
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change described in Items I, II, and III below, which items have been
prepared primarily by NSCC. NSCC filed the proposal pursuant to Section
19(b)(3)(A)(iii) of the Act \2\ and Rule 19b-4(f)(4) \3\ thereunder so
that the proposal was effective upon filing with the Commission. The
Commission is publishing this notice to solicit comments on the rule
change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78s(b)(3)(A)(iii).
\3\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The purpose of the rule change is to allow for transfer and
reregistration of Fund/SERV Eligible Fund positions to and from a
financial intermediary and a mutual fund company.
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\
---------------------------------------------------------------------------
\4\ 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
Currently NSCC's rules permit the transfer of Fund/SERV eligible
shares from one member to another member through NSCC's Automated
Customer Account Transfer Service (``ACATS'') or from one fund member
to another fund member through the Transfer of Retirement Assets
(``ToRA'') service. In an effort to further standardize and automate
the account transfer and reregistration process between members and
mutual fund companies, NSCC is proposing to accommodate the transfer of
customer mutual fund share registration: (i) Held by a customer
directly at a mutual fund company to be reregistered in the name of a
financial intermediary and (ii) held by a financial intermediary to be
reregistered as a direct customer position at the mutual fund company.
A member can request the transfer of registration in the capacity of
the party receiving the reregistration or in the capacity of the party
transferring the registration. The contra-side NSCC fund member must
accept the reregistration request in order for NSCC to process it.
NSCC is also proposing that, unless the parties agree otherwise,
the member and fund member will comply with certain legal
responsibilities associated with the reregistration. The member will
agree that in initiating the request it has obtained the requisite
authorization from the account holder and that it will provide a copy
of it to the fund member upon request. The member also will indemnify
the fund member for any liabilities incurred in or associated with the
request other than those relating to the negligence or misconduct of
the fund member. In connection with reregistrations of IRA and other
tax-deferred accounts, a member that makes the transfer request in its
capacity as a successor custodian agrees that it is so qualified under
the provisions of the Internal Revenue Code. NSCC is also proposing
that the members will agree that any dispute between them relating to
these provisions will be resolved directly between them and that NSCC
is not a party to such dispute and has no responsibility with respect
to the enforcement or satisfaction of such provisions. In addition, the
submission or processing of a transfer transaction through NSCC will
not extinguish or otherwise affect any of the participants' legal
rights arising out of the transaction.\5\
---------------------------------------------------------------------------
\5\ Similar provisions are contained in NSCC rules relating to
other mutual fund services. See, e.g., NSCC Rule 50, Section 17 and
NSCC Rule 52, Section 46.
---------------------------------------------------------------------------
The proposed rule change is consistent with Section 17A of the
Act,\6\ as amended, because it will reduce the likelihood of manual
processing errors, will lower costs, and will reduce the time needed to
complete the transfer of customer mutual fund share registrations,
thereby promoting the prompt and accurate clearance and settlement of
reregistration of mutual fund share positions processed through NSCC's
Fund/SERV service.
---------------------------------------------------------------------------
\6\ 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 proposed 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 the proposed rule change effects a
change in an existing service of a registered clearing agency that: (i)
Does not adversely affect the safeguarding of securities or funds in
the custody or control of the clearing agency 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 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
[[Page 5880]]
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-2008-12 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Elizabeth
M. Murphy, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSCC-2008-12. 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 Room, 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 at https://www.dtcc.com/downloads/legal/rule_filings/2008/
nscc/2008-12.pdf. 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-2008-12 and should be submitted on or before February 23, 2009.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2120 Filed 1-30-09; 8:45 am]
BILLING CODE 8011-01-P
