Self-Regulatory Organizations; National Securities Clearing Corporation; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Enhance National Securities Clearing Corporation's Haircut-Based Volatility Charge Applicable to Illiquid Securities and UITs and Make Certain Other Changes to Procedure XV, 39244-39245 [2020-14010]
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39244
Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89145; File No. SR–NSCC–
2020–003]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change To Enhance National
Securities Clearing Corporation’s
Haircut-Based Volatility Charge
Applicable to Illiquid Securities and
UITs and Make Certain Other Changes
to Procedure XV
June 24, 2020.
I. Introduction
On March 16, 2020, National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
proposed rule change SR–NSCC–2020–
003 (‘‘Proposed Rule Change’’) pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder.2 The Proposed Rule
Change was published for comment in
the Federal Register on March 31,
2020.3 The Commission has received
comment letters on the Proposed Rule
Change.4 On May 21, 2020, pursuant to
Section 19(b)(2) of the Act,5 the
Commission designated a longer period
within which to approve, disapprove, or
institute proceedings to determine
whether to approve or disapprove the
Proposed Rule Change.6 This order
khammond on DSKJM1Z7X2PROD with NOTICES
1 15
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 88474
(March 25, 2020), 85 FR 17910 (March 31, 2020)
(SR–NSCC–2020–003) (‘‘Notice’’). NSCC also filed
the proposal contained in the Proposed Rule
Change as advance notice SR–FICC–2020–802
(‘‘Advance Notice’’) with the Commission pursuant
to Section 806(e)(1) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act entitled the
Payment, Clearing, and Settlement Supervision Act
of 2010 (‘‘Clearing Supervision Act’’). 12 U.S.C.
5465(e)(1); 17 CFR 240.19b–4(n)(1)(i). Notice of
filing of the Advance Notice was published for
comment in the Federal Register on April 15, 2020.
Securities Exchange Act Release No. 88615 (April
9, 2020), 85 FR 21037 (April 15, 2020) (SR–NSCC–
2020–802). The proposal contained in the Proposed
Rule Change and the Advance Notice shall not take
effect until all regulatory actions required with
respect to the proposal are completed.
4 Letter from Christopher R. Doubek, CEO, Alpine
Securities Corporation (April 21, 2020); Letter from
John Busacca, Founder, Securities Industry
Professional Association (April 23, 2020); Letter
from Charles F. Lek, Lek Securities Corporation
(April 30, 2020); Letter from James C. Snow,
President/CCO, Wilson-Davis & Co., Inc., all
available at https://www.sec.gov/comments/sr-nscc2020-003/srnscc2020003.htm.
5 15 U.S.C. 78s(b)(2).
6 Securities Exchange Act Release No. 88885 (May
15, 2020), 85 FR 31007 (May 21, 2020) (SR–NSCC–
2020–003).
VerDate Sep<11>2014
18:18 Jun 29, 2020
Jkt 250001
institutes proceedings, pursuant to
Section 19(b)(2)(B) of the Act,7 to
determine whether to approve or
disapprove the Proposed Rule Change.
II. Summary of the Proposed Rule
Change
As described in the Notice,8 NSCC
proposes to (1) revise the definition of
Illiquid Security, (2) apply a haircutbased volatility charge specifically
applicable to Illiquid Securities and unit
investment trusts (‘‘UITs’’), (3) eliminate
the current Illiquid Charge, and (4)
make other confirming changes.
A. Proposed Definition of Illiquid
Security
NSCC’s proposed definition of an
Illiquid Security includes three
categories of securities. The first
category of the proposed definition of an
Illiquid Security would include any
security that is not listed on a specified
securities exchange. For purposes of this
definition, NSCC’s Rules would define a
‘‘specified securities exchange’’ as a
national securities exchange that has
established listing services and is
covered by industry pricing and data
vendors. The second category of the
proposed definition of an Illiquid
Security would include any security
that (1) is listed on a specified securities
exchange, (2) either (i) has a market
capitalization that is considered by
NSCC to be a micro-capitalization as of
the last business day or the prior month,
or (ii) is an American depositary receipt,
and (3) the median of its calculated
illiquidity ratio of the prior six months
exceeds certain threshold that would be
determined by NSCC pursuant to certain
criteria. The third category of the
proposed definition of an Illiquid
Security would include any security
that is listed on a specified securities
exchange and, as determined by NSCC
on a monthly basis, has fewer than 31
business days of trading history over the
past 153 business days on such
exchange.
B. Proposed Haircut-Based Volatility
Charge Specifically Applicable to
Illiquid Securities and UITs
First, NSCC proposes to expressly
exclude Illiquid Securities from
calculating the volatility component of
a Required Fund Deposit using a
parametric Value at Risk (‘‘VaR’’) model
7 15
U.S.C. 78s(b)(2)(B).
description of the Proposed Rule Change is
based on the statements prepared by NSCC in the
Notice. See Notice, supra note 3. Capitalized terms
used herein and not otherwise defined herein are
defined in NSCC’s Rules & Procedures, available at
www.dtcc.com/∼/media/Files/Downloads/legal/
rules/nscc_rules.pdf.
8 The
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
and instead apply a haircut-based
volatility charge specifically to Illiquid
Securities. To determine the appropriate
volatility charge, NSCC would group
Illiquid Securities by price level. The
haircut percentage applicable to each
group of Illiquid Securities would be
determined at least annually. The
haircut percentage would be the highest
of the following percentages: (1) 10%,
(2) a percent benchmarked to be
sufficient to cover the 99.5th percentile
of the historical 3-day return of each
group of Illiquid Securities in each
Member’s portfolio, and (3) a percent
benchmarked to be sufficient to cover
the 99th percentile of the historical 3day return of each group in each
Member’s portfolio after incorporating a
fixed transaction cost equal to one-half
of the estimated bid-ask spread. The
look-back period for purposes of
calibrating the applicable percentage
would be no less than five years.
Second, NSCC proposes to expressly
exclude UITs from calculating the
volatility component of the Required
Fund Deposit using a VaR model, and
instead apply a haircut-based volatility
charge specifically applicable to UITs.
NSCC would review the haircut
percentage used in this calculation at
least annually. The haircut percentage
applicable to UITs would be the highest
of (1) 2%, and (2) the 99.5th percentile
of the historical 3-day returns for the
group of UITs within each Member’s
portfolio using a look-back period of no
less than 5 years.
C. Proposed Elimination of the Illiquid
Charge
NSCC proposes to eliminate the
existing Illiquid Charge (and the
corresponding definition of Illiquid
Position), which may be imposed as an
additional charge in the volatility
component of a Required Fund Deposit
that is applied to Illiquid Securities as
securities that are less amenable to
statistical analysis.
D. Proposed Conforming Changes
NSCC proposes to make two
conforming changes to harmonize the
Rules in light of the proposed
amendments discussed above. First, the
proposal would exclude municipal and
corporate bonds that are less amenable
to statistical analysis or amenable to
statistical analysis only in a complex
manner from the VaR Charge. Second,
NSCC proposes to revise the Rules to
clarify its current practice (i.e., that only
long positions in Family-Issued
Securities are excluded from the VaR
Charge), and that short positions in
Family-Issued Securities would be
subject to the haircut-based volatility
E:\FR\FM\30JNN1.SGM
30JNN1
Federal Register / Vol. 85, No. 126 / Tuesday, June 30, 2020 / Notices
charge because they would meet the
proposed definition of Illiquid
Securities.
khammond on DSKJM1Z7X2PROD with NOTICES
III. Proceedings To Determine Whether
To Approve or Disapprove the
Proposed Rule Change and Grounds for
Disapproval Under Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Act 9 to determine
whether the Proposed Rule Change
should be approved or disapproved.
Institution of proceedings is appropriate
at this time in view of the legal and
policy issues raised by the Proposed
Rule Change. Institution of proceedings
does not indicate that the Commission
has reached any conclusions with
respect to any of the issues involved.
Rather, the Commission seeks and
encourages interested persons to
comment on the Proposed Rule Change,
and provide the Commission with
arguments to support the Commission’s
analysis as to whether to approve or
disapprove the Proposed Rule Change.
Pursuant to Section 19(b)(2)(B) of the
Act,10 the Commission is providing
notice of the grounds for disapproval
under consideration. The Commission is
instituting proceedings to allow for
additional analysis of, and input from
commenters with respect to, the
Proposed Rule Change’s consistency
with Section 17A of the Act,11 and the
rules thereunder, including the
following provisions:
• Section 17A(b)(3)(F) of the Act,12
which requires, among other things, that
the rules of a clearing agency must be
designed to assure the safeguarding of
securities and funds which are in the
custody or control of the clearing agency
or for which it is responsible and to
protect investors and the public interest;
and
• Rule 17Ad–22(e)(4)(i) under the
Act,13 which requires a covered clearing
agency establish, implement, maintain
and enforce written policies and
procedures reasonably designed to
effectively identify, measure, monitor,
and manage its credit exposures to
participants and those arising from its
payment, clearing, and settlement
processes, including by maintaining
sufficient financial resources to cover its
credit exposure to each participant fully
with a high degree of confidence.
• Rule 17Ad–22(e)(23)(ii) under the
Act,14 which requires a covered clearing
9 15
U.S.C. 78s(b)(2)(B).
10 Id.
11 15
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(F).
13 17 CFR 240.17Ad–22(e)(4)(i).
14 17 CFR 240.17Ad–22(e)(23)(ii).
12 15
VerDate Sep<11>2014
18:18 Jun 29, 2020
Jkt 250001
agency establish, implement, maintain
and enforce written policies and
procedures reasonably designed to
provide sufficient information to enable
participants to identify and evaluate the
risks, fees, and other material costs they
incur by participating in the covered
clearing agency.
Electronic Comments
IV. Procedure: Request for Written
Comments
Paper Comments
The Commission requests that
interested persons provide written
submissions of their views, data, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
Proposed Rule Change. In particular, the
Commission invites the written views of
interested persons concerning whether
the Proposed Rule Change is consistent
with Section 17A(b)(3)(F) of the Act,15
Rule 17Ad–22(e)(4)(i) under the Act,16
Rule 17Ad–22(e)(23)(ii) under the Act,17
or any other provision of the Act, or the
rules and regulations thereunder.
Although there do not appear to be any
issues relevant to approval or
disapproval that would be facilitated by
an oral presentation of views, data, and
arguments, the Commission will
consider, pursuant to Rule 19b–4(g)
under the Act,18 any request for an
opportunity to make an oral
presentation.19
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
Proposed Rule Change should be
approved or disapproved by July 21,
2020. Any person who wishes to file a
rebuttal to any other person’s
submission must file that rebuttal by
August 4, 2020.
The Commission asks that
commenters address the sufficiency of
NSCC’s statements in support of the
Proposed Rule Change, which are set
forth in the Notice,20 in addition to any
other comments they may wish to
submit about the Proposed Rule Change.
Comments may be submitted by any
of the following methods:
15 15
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(4)(i).
17 17 CFR 240.17Ad–23(e)(23)(ii).
18 17 CFR 240.19b–4(g).
19 Section 19(b)(2) of the Act grants to the
Commission flexibility to determine what type of
proceeding—either oral or notice and opportunity
for written comments—is appropriate for
consideration of a particular proposal by a selfregulatory organization. See Securities Act
Amendments of 1975, Senate Comm. on Banking,
Housing & Urban Affairs, S. Rep. No. 75, 94th
Cong., 1st Sess. 30 (1975).
20 See Notice, supra note 3.
16 17
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
39245
• 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–
NSCC–2020–003 on the subject line.
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NSCC–2020–003. 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 website (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 website 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 the
filing also will be available for
inspection and copying at the principal
office of NSCC and on DTCC’s website
(https://dtcc.com/legal/sec-rulefilings.aspx). All comments received
will be posted without change. Persons
submitting comments are cautioned that
we do not redact or edit personal
identifying information from comment
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NSCC–
2020–003 and should be submitted on
or before July 21, 2020. Rebuttal
comments should be submitted by
August 4, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–14010 Filed 6–29–20; 8:45 am]
BILLING CODE 8011–01–P
21 17
E:\FR\FM\30JNN1.SGM
CFR 200.30–3(a)(31).
30JNN1
]]>Agencies
[Federal Register Volume 85, Number 126 (Tuesday, June 30, 2020)]
[Notices]
[Pages 39244-39245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14010]
[[Page 39244]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89145; File No. SR-NSCC-2020-003]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Order Instituting Proceedings To Determine Whether To
Approve or Disapprove a Proposed Rule Change To Enhance National
Securities Clearing Corporation's Haircut-Based Volatility Charge
Applicable to Illiquid Securities and UITs and Make Certain Other
Changes to Procedure XV
June 24, 2020.
I. Introduction
On March 16, 2020, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') proposed rule change SR-NSCC-2020-003 (``Proposed Rule
Change'') pursuant to Section 19(b)(1) of the Securities Exchange Act
of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The Proposed Rule
Change was published for comment in the Federal Register on March 31,
2020.\3\ The Commission has received comment letters on the Proposed
Rule Change.\4\ On May 21, 2020, pursuant to Section 19(b)(2) of the
Act,\5\ the Commission designated a longer period within which to
approve, disapprove, or institute proceedings to determine whether to
approve or disapprove the Proposed Rule Change.\6\ This order
institutes proceedings, pursuant to Section 19(b)(2)(B) of the Act,\7\
to determine whether to approve or disapprove the Proposed Rule Change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 88474 (March 25, 2020),
85 FR 17910 (March 31, 2020) (SR-NSCC-2020-003) (``Notice''). NSCC
also filed the proposal contained in the Proposed Rule Change as
advance notice SR-FICC-2020-802 (``Advance Notice'') with the
Commission pursuant to Section 806(e)(1) of the Dodd-Frank Wall
Street Reform and Consumer Protection Act entitled the Payment,
Clearing, and Settlement Supervision Act of 2010 (``Clearing
Supervision Act''). 12 U.S.C. 5465(e)(1); 17 CFR 240.19b-4(n)(1)(i).
Notice of filing of the Advance Notice was published for comment in
the Federal Register on April 15, 2020. Securities Exchange Act
Release No. 88615 (April 9, 2020), 85 FR 21037 (April 15, 2020) (SR-
NSCC-2020-802). The proposal contained in the Proposed Rule Change
and the Advance Notice shall not take effect until all regulatory
actions required with respect to the proposal are completed.
\4\ Letter from Christopher R. Doubek, CEO, Alpine Securities
Corporation (April 21, 2020); Letter from John Busacca, Founder,
Securities Industry Professional Association (April 23, 2020);
Letter from Charles F. Lek, Lek Securities Corporation (April 30,
2020); Letter from James C. Snow, President/CCO, Wilson-Davis & Co.,
Inc., all available at https://www.sec.gov/comments/sr-nscc-2020-003/srnscc2020003.htm.
\5\ 15 U.S.C. 78s(b)(2).
\6\ Securities Exchange Act Release No. 88885 (May 15, 2020), 85
FR 31007 (May 21, 2020) (SR-NSCC-2020-003).
\7\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
II. Summary of the Proposed Rule Change
As described in the Notice,\8\ NSCC proposes to (1) revise the
definition of Illiquid Security, (2) apply a haircut-based volatility
charge specifically applicable to Illiquid Securities and unit
investment trusts (``UITs''), (3) eliminate the current Illiquid
Charge, and (4) make other confirming changes.
---------------------------------------------------------------------------
\8\ The description of the Proposed Rule Change is based on the
statements prepared by NSCC in the Notice. See Notice, supra note 3.
Capitalized terms used herein and not otherwise defined herein are
defined in NSCC's Rules & Procedures, available at www.dtcc.com/~/
media/Files/Downloads/legal/rules/nscc_rules.pdf.
---------------------------------------------------------------------------
A. Proposed Definition of Illiquid Security
NSCC's proposed definition of an Illiquid Security includes three
categories of securities. The first category of the proposed definition
of an Illiquid Security would include any security that is not listed
on a specified securities exchange. For purposes of this definition,
NSCC's Rules would define a ``specified securities exchange'' as a
national securities exchange that has established listing services and
is covered by industry pricing and data vendors. The second category of
the proposed definition of an Illiquid Security would include any
security that (1) is listed on a specified securities exchange, (2)
either (i) has a market capitalization that is considered by NSCC to be
a micro-capitalization as of the last business day or the prior month,
or (ii) is an American depositary receipt, and (3) the median of its
calculated illiquidity ratio of the prior six months exceeds certain
threshold that would be determined by NSCC pursuant to certain
criteria. The third category of the proposed definition of an Illiquid
Security would include any security that is listed on a specified
securities exchange and, as determined by NSCC on a monthly basis, has
fewer than 31 business days of trading history over the past 153
business days on such exchange.
B. Proposed Haircut-Based Volatility Charge Specifically Applicable to
Illiquid Securities and UITs
First, NSCC proposes to expressly exclude Illiquid Securities from
calculating the volatility component of a Required Fund Deposit using a
parametric Value at Risk (``VaR'') model and instead apply a haircut-
based volatility charge specifically to Illiquid Securities. To
determine the appropriate volatility charge, NSCC would group Illiquid
Securities by price level. The haircut percentage applicable to each
group of Illiquid Securities would be determined at least annually. The
haircut percentage would be the highest of the following percentages:
(1) 10%, (2) a percent benchmarked to be sufficient to cover the 99.5th
percentile of the historical 3-day return of each group of Illiquid
Securities in each Member's portfolio, and (3) a percent benchmarked to
be sufficient to cover the 99th percentile of the historical 3-day
return of each group in each Member's portfolio after incorporating a
fixed transaction cost equal to one-half of the estimated bid-ask
spread. The look-back period for purposes of calibrating the applicable
percentage would be no less than five years.
Second, NSCC proposes to expressly exclude UITs from calculating
the volatility component of the Required Fund Deposit using a VaR
model, and instead apply a haircut-based volatility charge specifically
applicable to UITs. NSCC would review the haircut percentage used in
this calculation at least annually. The haircut percentage applicable
to UITs would be the highest of (1) 2%, and (2) the 99.5th percentile
of the historical 3-day returns for the group of UITs within each
Member's portfolio using a look-back period of no less than 5 years.
C. Proposed Elimination of the Illiquid Charge
NSCC proposes to eliminate the existing Illiquid Charge (and the
corresponding definition of Illiquid Position), which may be imposed as
an additional charge in the volatility component of a Required Fund
Deposit that is applied to Illiquid Securities as securities that are
less amenable to statistical analysis.
D. Proposed Conforming Changes
NSCC proposes to make two conforming changes to harmonize the Rules
in light of the proposed amendments discussed above. First, the
proposal would exclude municipal and corporate bonds that are less
amenable to statistical analysis or amenable to statistical analysis
only in a complex manner from the VaR Charge. Second, NSCC proposes to
revise the Rules to clarify its current practice (i.e., that only long
positions in Family-Issued Securities are excluded from the VaR
Charge), and that short positions in Family-Issued Securities would be
subject to the haircut-based volatility
[[Page 39245]]
charge because they would meet the proposed definition of Illiquid
Securities.
III. Proceedings To Determine Whether To Approve or Disapprove the
Proposed Rule Change and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \9\ to determine whether the Proposed Rule
Change should be approved or disapproved. Institution of proceedings is
appropriate at this time in view of the legal and policy issues raised
by the Proposed Rule Change. Institution of proceedings does not
indicate that the Commission has reached any conclusions with respect
to any of the issues involved. Rather, the Commission seeks and
encourages interested persons to comment on the Proposed Rule Change,
and provide the Commission with arguments to support the Commission's
analysis as to whether to approve or disapprove the Proposed Rule
Change.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
Pursuant to Section 19(b)(2)(B) of the Act,\10\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of, and input from commenters with respect to, the Proposed
Rule Change's consistency with Section 17A of the Act,\11\ and the
rules thereunder, including the following provisions:
---------------------------------------------------------------------------
\10\ Id.
\11\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
Section 17A(b)(3)(F) of the Act,\12\ which requires, among
other things, that the rules of a clearing agency must be designed to
assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency or for which it is
responsible and to protect investors and the public interest; and
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Rule 17Ad-22(e)(4)(i) under the Act,\13\ which requires a
covered clearing agency establish, implement, maintain and enforce
written policies and procedures reasonably designed to effectively
identify, measure, monitor, and manage its credit exposures to
participants and those arising from its payment, clearing, and
settlement processes, including by maintaining sufficient financial
resources to cover its credit exposure to each participant fully with a
high degree of confidence.
---------------------------------------------------------------------------
\13\ 17 CFR 240.17Ad-22(e)(4)(i).
---------------------------------------------------------------------------
Rule 17Ad-22(e)(23)(ii) under the Act,\14\ which requires
a covered clearing agency establish, implement, maintain and enforce
written policies and procedures reasonably designed to provide
sufficient information to enable participants to identify and evaluate
the risks, fees, and other material costs they incur by participating
in the covered clearing agency.
---------------------------------------------------------------------------
\14\ 17 CFR 240.17Ad-22(e)(23)(ii).
---------------------------------------------------------------------------
IV. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the Proposed Rule Change. In particular, the Commission invites
the written views of interested persons concerning whether the Proposed
Rule Change is consistent with Section 17A(b)(3)(F) of the Act,\15\
Rule 17Ad-22(e)(4)(i) under the Act,\16\ Rule 17Ad-22(e)(23)(ii) under
the Act,\17\ or any other provision of the Act, or the rules and
regulations thereunder. Although there do not appear to be any issues
relevant to approval or disapproval that would be facilitated by an
oral presentation of views, data, and arguments, the Commission will
consider, pursuant to Rule 19b-4(g) under the Act,\18\ any request for
an opportunity to make an oral presentation.\19\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78q-1(b)(3)(F).
\16\ 17 CFR 240.17Ad-22(e)(4)(i).
\17\ 17 CFR 240.17Ad-23(e)(23)(ii).
\18\ 17 CFR 240.19b-4(g).
\19\ Section 19(b)(2) of the Act grants to the Commission
flexibility to determine what type of proceeding--either oral or
notice and opportunity for written comments--is appropriate for
consideration of a particular proposal by a self-regulatory
organization. See Securities Act Amendments of 1975, Senate Comm. on
Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st
Sess. 30 (1975).
---------------------------------------------------------------------------
Interested persons are invited to submit written data, views, and
arguments regarding whether the Proposed Rule Change should be approved
or disapproved by July 21, 2020. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
August 4, 2020.
The Commission asks that commenters address the sufficiency of
NSCC's statements in support of the Proposed Rule Change, which are set
forth in the Notice,\20\ in addition to any other comments they may
wish to submit about the Proposed Rule Change.
---------------------------------------------------------------------------
\20\ See Notice, supra note 3.
---------------------------------------------------------------------------
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 [email protected]. Please include
File Number SR-NSCC-2020-003 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSCC-2020-003. 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 website (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 website 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 the filing also will be available for inspection
and copying at the principal office of NSCC and on DTCC's website
(https://dtcc.com/legal/sec-rule-filings.aspx). All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NSCC-2020-003 and should be submitted on
or before July 21, 2020. Rebuttal comments should be submitted by
August 4, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(31).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-14010 Filed 6-29-20; 8:45 am]
BILLING CODE 8011-01-P
