Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Its Fee Schedule, 33250-33252 [2014-13452]

Download as PDF 33250 Federal Register / Vol. 79, No. 111 / Tuesday, June 10, 2014 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were solicited or received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) 7 of the Act and Rule 19b– 4(f)(6) 8 thereunder. At any time within 60 days of the filing of such 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. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) 9 of the Act to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSEMKT–2014–48. 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 (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 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 filing also will be available for inspection and copying at the principal office of the Exchange. 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– NYSEMKT–2014–48, and should be submitted on or before July 1, 2014. (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 28, 2014, 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. 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. 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of amendments to the Rules & Procedures (‘‘Rules’’) of NSCC to modify its fee schedule, as more fully described below. 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 such statements. 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: For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.10 Kevin M. O’Neill, Deputy Secretary. Electronic Comments [FR Doc. 2014–13457 Filed 6–9–14; 8:45 am] (i) Purpose • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSEMKT–2014–48 on the subject line. BILLING CODE 8011–01–P The purpose of the proposed rule changes is to revise NSCC’s fee schedule (as listed in Addendum A of the Rules) in order to update the fees related to processing voluntary reorganizations, and to update the fees related to reporting certain Index Receipt Portfolio Composition Files. NSCC has recently enhanced the system that applies corporate actions to Members’ open failed positions within its Continuous Net Settlement (‘‘CNS’’) system (‘‘CAD Enhancement’’).5 In Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange emcdonald on DSK67QTVN1PROD with NOTICES 7 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the Exchange to provide the Commission with written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 9 15 U.S.C. 78s(b)(2)(B). 8 17 VerDate Mar<15>2010 16:55 Jun 09, 2014 Jkt 232001 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–72307; File No. SR–NSCC– 2014–06] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify Its Fee Schedule Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 PO 00000 CFR 200.30–3(a)(12). Frm 00080 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). 5 See Release No. 34–71725; File No. SR–NSCC– 2014–03 (March 14, 2014), 79 FR 15780 (March 21, 2014). 2 17 June 4, 2014. 10 17 (A) Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change Fmt 4703 Sfmt 4703 E:\FR\FM\10JNN1.SGM 10JNN1 emcdonald on DSK67QTVN1PROD with NOTICES Federal Register / Vol. 79, No. 111 / Tuesday, June 10, 2014 / Notices connection with these enhancements, NSCC is proposing to charge a US $500.00 fee each time a Member submits instructions to place a ‘‘protect’’ on an open fail position in CNS in order to participate in an upcoming corporate action, or to add shares to a voluntary corporate action either on ‘‘protect’’ expiration date or, when there is no ‘‘protect’’ for that corporate action, on the expiration date of the corporate action (‘‘Late Protect’’). This fee will cover the costs incurred by NSCC to enhance its corporate action system to process Late Protects, and is intended to encourage Members to submit a ‘‘protect’’ by the earlier submission date. Under the Rules a lower fee of US $15.00 is charged if Members submit a ‘‘protect’’ instruction either on or prior to the business day prior to ‘‘protect’’ expiration date or, when there is no ‘‘protect’’ for that corporate action, on the business day prior to the expiration date of the corporate action. NSCC is also proposing to update the fees for the enhanced Portfolio Composition File reports which contain information on the Index Receipt portfolios that the subscribing Member requests (‘‘Subscription-Based Portfolio Composition File reports’’). These reports are available as a machine readable output (‘‘MRO’’) file, as well as through a web-based interface from which Members may download and print reports. The existing fees for these reports are charged in relation to the number of portfolios received by the Member on an average daily basis per month.6 Since NSCC introduced the Subscription-Based Portfolio Composition File reports it has been able to recover the costs of developing these reports earlier than it had expected. As a result, NSCC is proposing to reduce the fees for the Subscription-Based Portfolio Composition File reports, as reflected on Exhibit 5, to more accurately reflect the costs of delivering this service to subscribing Members. NSCC will also introduce a maximum and minimum monthly fee related to this service. The minimum monthly fee will cover the costs to NSCC of providing this service to Members on an on-going basis; however, as the number of units being reported increases over time with the growth of the market, NSCC will realize an economies of scale, which it will pass on to its Members by capping the monthly fees. 6 See Release No. 34–69596; File No. SR–NSCC– 2013–06 (May 16, 2013), 78 FR 30362 (May 22, 2013). VerDate Mar<15>2010 16:55 Jun 09, 2014 Jkt 232001 Implementation Timeframe The implementation date of the fee change with respect to the Late Protect will coincide with the implementation date of the CAD Enhancement, and will be announced by an NSCC Important Notice. The fee change with respect to Subscription-Based Portfolio Composition File reports will be effective on June 2, 2014. Proposed Rule Changes NSCC proposes to amend Addendum A as marked on Exhibit 5 hereto. No other changes to the Rules are contemplated by this proposed rule change. (ii) Statutory Basis The proposed rule changes will be applied equitably to the NSCC Members that submit a Late Protect or that subscribe for the Subscription-Based Portfolio Composition File reports, respectively. The proposed fee for Late Protects is reasonable as it will cover the costs incurred by NSCC to enhance its corporate action system to process Late Protects, and is intended to encourage Members to submit a ‘‘protect’’ by the earlier submission date. Furthermore, the maximum and minimum monthly fees related to the Subscription-Based Portfolio Composition File reports will ensure that NSCC is able to charge fees that reflect the costs of providing this service, and will pass on to NSCC Members any economies of scale. Therefore, the proposed rule changes are each consistent with the requirements of the Securities Exchange Act of 1934, as amended (‘‘Act’’) and the rules and regulations thereunder applicable to NSCC, in particular Section 17A(b)(3)(D) of the Act, which requires that NSCC’s Rules provide for the equitable allocation of reasonable dues, fees, and other charges among its participants. (B) Self-Regulatory Organization’s Statement on Burden on Competition NSCC does not believe that the proposed rule changes will have any impact, or impose any burden, on competition. As stated above, the proposed changes will be applied equitably to NSCC Members that use the respective services, and will not disproportionally impact any NSCC Members. (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 changes have not yet been solicited or received. NSCC will notify PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 33251 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 7 and Rule 19b– 4(f)(2) 8 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. 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 email to rule-comments@ sec.gov. Please include File No. SR– NSCC–2014–06 on the subject line. Paper Comments • Send in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File No. SR–NSCC–2014–06. 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 (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 Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549 on official 7 15 8 17 E:\FR\FM\10JNN1.SGM U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 10JNN1 33252 Federal Register / Vol. 79, No. 111 / Tuesday, June 10, 2014 / Notices business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of NSCC and on its Web site (https://www.dtcc.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 No. SR–NSCC–2014–06 and should be submitted on or before July 1, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–13452 Filed 6–9–14; 8:45 am] SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the NYSE Arca Options Fee Schedule Relating to Fees on Strategy Executions June 4, 2014. emcdonald on DSK67QTVN1PROD with NOTICES Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (the ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on May 23, 2014, NYSE Arca, Inc. (the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend the NYSE Arca Options Fee Schedule (‘‘Fee Schedule’’) relating to fees on Strategy Executions. The Exchange proposes to implement the fee change effective June 1, 2014. The text of the proposed rule change is available on the Exchange’s Web site at www.nyse.com, at the CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. VerDate Mar<15>2010 16:55 Jun 09, 2014 Jkt 232001 In its filing with the Commission, the self-regulatory organization 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 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. 1. Purpose [Release No. 34–72309; File No. SR– NYSEArca–2014–62] 1 15 II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P 9 17 principal office of the Exchange, and at the Commission’s Public Reference Room. The purpose of this filing is to modify the Exchange’s Limit of Fees on Options Strategy Executions (‘‘Strategy Cap’’) to include Flexible Exchange Option (‘‘FLEX’’) 4 transactions executed as part of a qualifying Strategy Execution. Currently, certain Strategy Executions are eligible to be capped at $750 per day in transaction fees, and further capped at $25,000 per month per initiating firm. Strategies eligible for the Strategy Cap involve reversals and conversions; box spreads; short stock interest spreads; merger spreads; and jelly rolls.5 The 4 See NYSE Arca Rule 5.30(4) [sic] (defining Flexible Exchange Option as a ‘‘customized options contract’’). 5 See NYSE Arca Options Fees and Charges, available at, https://globalderivatives.nyx.com/ sites/globalderivatives.nyx.com/files/nyse_arca_ options_fee_schedule_for_4-1-14.pdf, n. 10, defining the eligible Strategy Executions as follows: (a) Reversals and Conversions. A ‘‘reversal’’ is established by combining a short security position with a short put and a long call position that shares the same strike and expiration. A ‘‘conversion’’ is established by combining a long position in the underlying security with a long put and a short call position that shares the same strike and expiration. (b) Box spread. A ‘‘box spread’’ is defined as transactions involving a long call option and a short put option at one strike, combined with a short call option and long put at a different strike, to create synthetic long and synthetic short stock positions, respectively. (c) Short stock interest spread. A ‘‘short stock interest spread’’ is defined as transactions done to achieve a short stock interest arbitrage involving the purchase, sale and exercise of in-the-money options of the same class. (d) Merger spread. A ‘‘merger spread’’ is defined as transactions done to achieve a merger arbitrage involving the purchase, sale and exercise of options of the same class and expiration date, each executed prior to the date on which shareholders of record are required to elect their respective form of consideration, i.e., cash or stock. PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 Exchange, however, currently deems FLEX transactions ineligible for the Strategy Cap. OTP Holders and OTP Firms occasionally receive orders for eligible Strategy Executions where one or more legs is comprised of a FLEX trade. Because FLEX trade fees are not eligible to be capped as part of a Strategy Execution, the OTP Holders and OTP Firms lose business to other markets that include FLEX transactions in their own competing Strategy Cap.6 NYSE Arca proposes to allow fees from FLEX transactions that are part of an otherwise eligible Strategy Execution to be included in the Strategy Cap. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with Section 6(b) of the Act,7 in general, and furthers the objectives of Sections 6(b)(4) and (5) of the Act,8 in particular, because it provides for the equitable allocation of reasonable dues, fees, and other charges among its members, issuers and other persons using its facilities and does not unfairly discriminate between customers, issuers, brokers or dealers. The Exchange believes that the proposed inclusion of Strategy Executions that are comprised in whole or in part by FLEX transactions in the Strategy Cap to be reasonable as it will reduce the total transaction costs for these types of trades. In addition, the proposed fee change is reasonable because it is similar to the strategy caps available on other Exchanges.9 The use of these Strategy Executions benefit all market participants by increasing liquidity in general and allowing significantly large business to be brought together to enhance price discovery. By encouraging this type of business on the Exchange, the increased liquidity benefits all market participants. The Exchange also believes that the proposed inclusion of Strategy Executions that are comprised in whole or in part by FLEX transactions in the Strategy Cap is also not unfairly discriminatory, as Strategy Executions (e) Jelly rolls. A ‘‘jelly roll’’ is created by entering into two separate positions simultaneously. One position involves buying a put and selling a call with the same strike price and expiration. The second position involves selling a put and buying a call, with the same strike price, but with a different expiration from the first position. 6 See, e.g., NYSE Amex Options Fee Schedule, available at, https://globalderivatives.nyx.com/ sites/globalderivatives.nyx.com/files/nyse_amex_ options_fee_schedule_for_2-3-14_0.pdf. 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(4) and (5). 9 See supra n. 6. E:\FR\FM\10JNN1.SGM 10JNN1

Agencies

[Federal Register Volume 79, Number 111 (Tuesday, June 10, 2014)]
[Notices]
[Pages 33250-33252]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13452]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72307; File No. SR-NSCC-2014-06]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Modify Its Fee Schedule

June 4, 2014.
    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 28, 2014, 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. 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. 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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

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

    The proposed rule change consists of amendments to the Rules & 
Procedures (``Rules'') of NSCC to modify its fee schedule, as more 
fully described below.

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 such statements.

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

(i) Purpose
    The purpose of the proposed rule changes is to revise NSCC's fee 
schedule (as listed in Addendum A of the Rules) in order to update the 
fees related to processing voluntary reorganizations, and to update the 
fees related to reporting certain Index Receipt Portfolio Composition 
Files.
    NSCC has recently enhanced the system that applies corporate 
actions to Members' open failed positions within its Continuous Net 
Settlement (``CNS'') system (``CAD Enhancement'').\5\ In

[[Page 33251]]

connection with these enhancements, NSCC is proposing to charge a US 
$500.00 fee each time a Member submits instructions to place a 
``protect'' on an open fail position in CNS in order to participate in 
an upcoming corporate action, or to add shares to a voluntary corporate 
action either on ``protect'' expiration date or, when there is no 
``protect'' for that corporate action, on the expiration date of the 
corporate action (``Late Protect''). This fee will cover the costs 
incurred by NSCC to enhance its corporate action system to process Late 
Protects, and is intended to encourage Members to submit a ``protect'' 
by the earlier submission date. Under the Rules a lower fee of US 
$15.00 is charged if Members submit a ``protect'' instruction either on 
or prior to the business day prior to ``protect'' expiration date or, 
when there is no ``protect'' for that corporate action, on the business 
day prior to the expiration date of the corporate action.
---------------------------------------------------------------------------

    \5\ See Release No. 34-71725; File No. SR-NSCC-2014-03 (March 
14, 2014), 79 FR 15780 (March 21, 2014).
---------------------------------------------------------------------------

    NSCC is also proposing to update the fees for the enhanced 
Portfolio Composition File reports which contain information on the 
Index Receipt portfolios that the subscribing Member requests 
(``Subscription-Based Portfolio Composition File reports''). These 
reports are available as a machine readable output (``MRO'') file, as 
well as through a web-based interface from which Members may download 
and print reports. The existing fees for these reports are charged in 
relation to the number of portfolios received by the Member on an 
average daily basis per month.\6\ Since NSCC introduced the 
Subscription-Based Portfolio Composition File reports it has been able 
to recover the costs of developing these reports earlier than it had 
expected. As a result, NSCC is proposing to reduce the fees for the 
Subscription-Based Portfolio Composition File reports, as reflected on 
Exhibit 5, to more accurately reflect the costs of delivering this 
service to subscribing Members. NSCC will also introduce a maximum and 
minimum monthly fee related to this service. The minimum monthly fee 
will cover the costs to NSCC of providing this service to Members on an 
on-going basis; however, as the number of units being reported 
increases over time with the growth of the market, NSCC will realize an 
economies of scale, which it will pass on to its Members by capping the 
monthly fees.
---------------------------------------------------------------------------

    \6\ See Release No. 34-69596; File No. SR-NSCC-2013-06 (May 16, 
2013), 78 FR 30362 (May 22, 2013).
---------------------------------------------------------------------------

Implementation Timeframe
    The implementation date of the fee change with respect to the Late 
Protect will coincide with the implementation date of the CAD 
Enhancement, and will be announced by an NSCC Important Notice. The fee 
change with respect to Subscription-Based Portfolio Composition File 
reports will be effective on June 2, 2014.
Proposed Rule Changes
    NSCC proposes to amend Addendum A as marked on Exhibit 5 hereto. No 
other changes to the Rules are contemplated by this proposed rule 
change.
(ii) Statutory Basis
    The proposed rule changes will be applied equitably to the NSCC 
Members that submit a Late Protect or that subscribe for the 
Subscription-Based Portfolio Composition File reports, respectively. 
The proposed fee for Late Protects is reasonable as it will cover the 
costs incurred by NSCC to enhance its corporate action system to 
process Late Protects, and is intended to encourage Members to submit a 
``protect'' by the earlier submission date. Furthermore, the maximum 
and minimum monthly fees related to the Subscription-Based Portfolio 
Composition File reports will ensure that NSCC is able to charge fees 
that reflect the costs of providing this service, and will pass on to 
NSCC Members any economies of scale. Therefore, the proposed rule 
changes are each consistent with the requirements of the Securities 
Exchange Act of 1934, as amended (``Act'') and the rules and 
regulations thereunder applicable to NSCC, in particular Section 
17A(b)(3)(D) of the Act, which requires that NSCC's Rules provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its participants.

 (B) Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule changes will have any 
impact, or impose any burden, on competition. As stated above, the 
proposed changes will be applied equitably to NSCC Members that use the 
respective services, and will not disproportionally impact any NSCC 
Members.

(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 changes 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 \7\ and Rule 19b-4(f)(2) \8\ 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 email to rule-comments@sec.gov. Please include 
File No. SR-NSCC-2014-06 on the subject line.

Paper Comments

     Send in triplicate to Secretary, Securities and Exchange 
Commission, 100 F Street NE., Washington, DC 20549-1090.
    All submissions should refer to File No. SR-NSCC-2014-06. 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 (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 Web site viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE., Washington, 
DC 20549 on official

[[Page 33252]]

business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of 
the filing also will be available for inspection and copying at the 
principal office of NSCC and on its Web site (https://www.dtcc.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 No. SR-NSCC-2014-06 and 
should be submitted on or before July 1, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13452 Filed 6-9-14; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.