Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Remove the InsurExpress and Replacements Services From Rule 57 of the NSCC Rules, 13944-13946 [2021-05024]
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13944
Federal Register / Vol. 86, No. 46 / Thursday, March 11, 2021 / Notices
(6) FINRA has implemented increased
sales practice and customer margin
requirements for FINRA members applicable
to inverse, leveraged and inverse leveraged
securities (which include the Shares) and
options on such securities, as described in
FINRA Regulatory Notices 09–31 (June 2009),
09–53 (August 2009), and 09–65 (November
2009). Members that carry customer accounts
will be required to follow the FINRA
guidance set forth in these notices;
(7) For initial and continued listing, the
Fund and the Trust must be in compliance
with Rule 10A–3 under the Act; 47 and
(8) A minimum of 100,000 Shares of the
Fund will be outstanding at the
commencement of trading on the Exchange.
Accordingly, the Commission finds
that the proposed rule change, as
modified by Amendment Nos. 1 and 3,
is consistent with Section 6(b)(5) of the
Act 48 and the rules and regulations
thereunder applicable to a national
securities exchange.
IV. Solicitation of Comments on
Amendment Nos. 1 and 3 to the
Proposed Rule Change
Interested persons are invited to
submit written views, data, and
arguments concerning whether
Amendment Nos. 1 and 3 are 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 Number SR–
CboeBZX–2020–070 on the subject line.
khammond on DSKJM1Z7X2PROD with NOTICES
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–CboeBZX–2020–070. This
relating to every customer prior to trading the
Shares, and specifically provides that ‘‘[n]o Member
shall recommend to a customer a transaction in any
such product unless the Member has a reasonable
basis for believing at the time of making the
recommendation that the customer has such
knowledge and experience in financial matters that
he may reasonably be expected to be capable of
evaluating the risks of the recommended
transaction and is financially able to bear the risks
of the recommended position;’’ (d) how information
regarding the IIV and the Fund’s holdings is
disseminated; (e) the risks involved in trading the
Shares during the Pre-Opening and After Hours
Trading Sessions (as such terms are defined in BZX
Rules) when an updated IIV will not be calculated
or publicly disseminated; (f) the requirement that
Members deliver a prospectus to investors
purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction;
and (g) trading information.
47 17 CFR 240.10A–3.
48 15 U.S.C. 78f(b)(5).
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16:53 Mar 10, 2021
Jkt 253001
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 the Exchange. 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–CboeBZX–2020–070 and
should be submitted on or before April
1, 2021.
V. Accelerated Approval of the
Proposed Rule Change, as Modified by
Amendment Nos. 1 and 3
The Commission finds good cause to
approve the proposed rule change, as
modified by Amendment Nos. 1 and 3,
prior to the thirtieth day after the date
of publication of notice of the filing of
Amendment Nos. 1 and 3 in the Federal
Register. In Amendment No. 1, among
other things,49 the Exchange represents
that the Funds’ participation, on any
given day, in VIX Futures Contracts,
will be limited to no more than ten
percent of the VIX Futures Contracts
traded on CFE during any Rebalance
Period, and in the event that the Funds
expect to hit the ten percent threshold
during the primary Rebalance Period,
the Funds would extend their respective
rebalances into an Extended Rebalance
Period. In Amendment No. 3, the
Exchange represents that the Fund will
notify both the Exchange and the
Commission in the event that the Fund
participates in an Extended Rebalance
Period as soon as practicable, but no
49 See
PO 00000
supra note 8.
Frm 00071
Fmt 4703
Sfmt 4703
later than 9:00 a.m. E.T. on the trading
day following the event. The changes to
the proposal and additional information
in Amendment Nos. 1 and 3 assist the
Commission in evaluating the
Exchange’s proposal and in determining
that it is consistent with the Act.
Accordingly, the Commission finds
good cause, pursuant to Section 19(b)(2)
of the Act,50 to approve the proposed
rule change, as modified by Amendment
Nos. 1 and 3, on an accelerated basis.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,51 that the
proposed rule change (SR–CboeBZX–
2020–070), as modified by Amendment
Nos. 1 and 3, be, and hereby is,
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.52
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–05027 Filed 3–10–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91261; File No. SR–NSCC–
2021–001]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Remove the
InsurExpress and Replacements
Services From Rule 57 of the NSCC
Rules
March 5, 2021.
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 February
25, 2021, 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
by the clearing agency. NSCC filed the
proposed rule change pursuant to
Section 19(b)(3)(A) 3 of the Act and
subparagraph (f)(4) 4 of Rule 19b–4
thereunder. The Commission is
publishing this notice to solicit
50 15
U.S.C. 78s(b)(2).
51 Id.
52 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4).
1 15
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Federal Register / Vol. 86, No. 46 / Thursday, March 11, 2021 / Notices
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
(a) The proposed rule change of NSCC
is annexed hereto as Exhibit 5 and
consists of modifications to NSCC’s
Rules & Procedures (‘‘Rules’’) in order to
remove the InsurExpress and
Replacements services from Rule 57 of
the Rules, as described in greater detail
below.5
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency 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. The
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
The proposed rule change consists of
modifications to the Rules in order to
remove the InsurExpress and
Replacements services from Rule 57 of
the Rules, as described in greater detail
below.
khammond on DSKJM1Z7X2PROD with NOTICES
Background
InsurExpress
In 2003, NSCC established a service
(‘‘InsurExpress’’) to allow Members,
Mutual Fund/Insurance Services
Members, Insurance Carrier/Retirement
Services Members and Data Services
Only Members (collectively, ‘‘I&RS
Members’’) to submit application
information and to settle premium
payments with respect to life insurance
products that it, at that time, called
‘‘Portal.’’ 6 In 2006, NSCC modified the
Rules to, among other things, add a
provision in the Rules specific to the
service, rename the service
‘‘InsurExpress’’ and provide that
InsurExpress would allow I&RS
Members to transmit I&RS Data relating
to the initiation, processing and
5 Terms
not defined herein are defined in the
Rules, available at https://dtcc.com/∼/media/Files/
Downloads/legal/rules/nscc_rules.pdf.
6 Securities Exchange Act Release No. 48896
(December 9, 2003), 68 FR 70553 (December 18,
2003) (SR–NSCC–2003–18) (‘‘2003 Filing’’).
VerDate Sep<11>2014
16:53 Mar 10, 2021
Jkt 253001
completion of applications for life
insurance contracts and other insurance
products among themselves.7 The
provision relating to InsurExpress is set
forth in Section 10 of Rule 57 of the
Rules.8 The 2003 Filing introducing the
service indicated that the proposed fee
schedule was being developed and
would be filed with the Commission at
a later date.9
No I&RS Members signed up for or
used InsurExpress, and fees for
InsurExpress were never developed or
filed with the Commission. In addition,
there were no system developments
made to the NSCC system in connection
with InsurExpress. NSCC has no current
plans to develop fees or build anything
in the NSCC system relating to
InsurExpress. As a result, NSCC would
like to remove InsurExpress from the
Rules.
Replacements
In 2010, NSCC established a service
(‘‘Replacements’’) intended to support
the transmission of I&RS Data regarding
the transfer, exchange or replacement of
an existing insurance contract and
settlement of payments in conjunction
to these replacement transactions.
System developments to the NSCC
system were made to support
Replacements and a fee schedule for the
service was added in Section IV.K.3 of
Addendum A of the Rules. In addition,
NSCC believes that at least one I&RS
Member signed up to use Replacements
and possibly tested the service.
However, the service was never used in
production and no fees have been
charged for the service. There are
currently no I&RS Members signed up
for Replacements and NSCC does not
believe that any I&RS Members will use
the service. As a result, NSCC would
like to remove Replacements from the
Rules.
Proposed Rule Change
In order to implement the proposal
above, NSCC would delete Section 10 of
Rule 57,10 which is the section relating
to InsurExpress. In addition, NSCC
would delete Section 11 of Rule 57,11
which is the section relating to
Replacements. NSCC would re-number
Section 12 and Section 13 of Rule 57 to
reflect the deletions of Sections 10 and
11 of Rule 57. NSCC would also remove
the fees listed for Replacements in
7 Securities Exchange Act Release No. 54921
(December 12, 2006), 71 FR 76415 (December 20,
2006) (SR–NSCC–2006–14).
8 Section 10 of Rule 57, supra note 5.
9 See Footnote 3 of the 2003 Filing, supra note 6.
10 Section 10 of Rule 57, supra note 5.
11 Section 11 of Rule 57, supra note 5.
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
13945
Section IV.K.3 of Addendum A of the
Rules.12
2. Statutory Basis
Section 17A(b)(3)(F) of the Act
requires, in part, that the Rules be
designed to promote the prompt and
accurate clearance and settlement of
securities transactions.13 NSCC believes
that the proposed rule change is
consistent with this provision because it
would provide enhanced clarity and
transparency for participants with
respect to services offered by NSCC by
updating the Rules to remove the ability
to access services that I&RS Members
did not utilize and are unlikely to
utilize in the future.
Therefore, by providing enhanced
clarity and transparency in the Rules
regarding the services provided by
NSCC, NSCC believes the proposed rule
change would promote the prompt and
accurate clearance and settlement of
securities transactions, consistent with
the requirements of the Act, in
particular Section 17A(b)(3)(F), cited
above.
(B) Clearing Agency’s Statement on
Burden on Competition
NSCC does not believe that the
proposed rule change would have any
impact on competition. I&RS Members
have not used InsurExpress or
Replacements and are unlikely to use
either service in the future. Therefore,
the proposed rule change should have
no effect on I&RS Members, other than
to remove InsurExpress and
Replacements from the Rules which are
unlikely to be utilized by I&RS
Members.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
NSCC has not received or solicited
any written comments relating to this
proposal. 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 pursuant to Section
19(b)(3)(A) 14 of the Act and paragraph
(f) 15 of Rule 19b–4 thereunder. At any
time within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
12 Section IV.K.3 of Addendum A of the Rules,
supra note 5.
13 15 U.S.C. 78q–1(b)(3)(F).
14 15 U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4(f).
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13946
Federal Register / Vol. 86, No. 46 / Thursday, March 11, 2021 / Notices
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 Number SR–
NSCC–2021–001 on the subject line.
khammond on DSKJM1Z7X2PROD with NOTICES
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to File
Number SR–NSCC–2021–001. 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; 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–
VerDate Sep<11>2014
16:53 Mar 10, 2021
Jkt 253001
2021–001 and should be submitted on
or before April 1, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–05024 Filed 3–10–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91272; File No. SR–
CboeEDGX–2021–012]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
11.11 (Routing to Away Trading
Centers), as Well as Its Fee Schedule,
To Delete References to the INET and
RDOX Routing Options
March 5, 2021.
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 March 1,
2021, Cboe EDGX Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX’’) proposes to
amend Rule 11.11 (Routing to Away
Trading Centers), as well as its Fee
Schedule, to delete references to the
INET and RDOX routing options. The
text of the proposed rule change is
provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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. The
Exchange 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
1. Purpose
The Exchange proposes to amend
paragraphs (4) and (6) under Exchange
Rule 11.11(g) and 11.11(a) to delete all
references to the INET and RDOX
routing options. The Exchange also
proposes to delete all references to the
INET routing option from the EDGX Fee
Schedule, as provided in fee codes 2
and L. The Exchange intends to
implement the proposed rule changes
on March 1, 2021.
Exchange Rule 11.11(g) provides for
various routing options available on the
Exchange. Specifically, Rule 11.11(g)(4)
provides for the INET routing option,
under which an order checks the
System 5 for available shares and then is
sent to Nasdaq. If shares remain
unexecuted after routing, they are
posted on the Nasdaq book, unless
otherwise instructed by the User.6
Similarly, Exchange Rule 11.11(g)(6)
provides for the RDOX routing option,
under which an order checks the
System for available shares and then is
sent to the NYSE and can be re-routed
by the NYSE. If shares remain
unexecuted after routing, they are
posted on the NYSE book, unless
otherwise instructed by the User.
The Exchange has determined
because few Users select the INET or
RDOX routing options, the current
demand does not warrant the
infrastructure and ongoing maintenance
expenses required to support the
product. Therefore, the Exchange now
5 The term ‘‘System’’ shall mean the electronic
communications and trading facility designated by
the Board through which securities orders of Users
are consolidated for ranking, execution and, when
applicable, routing away. See Exchange Rule
1.5(cc).
6 The term ‘‘User’’ shall mean any Member or
Sponsored Participant who is authorized to obtain
access to the System pursuant to Rule 11.3. See
Exchange Rule 1.5(ee).
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]]>Agencies
[Federal Register Volume 86, Number 46 (Thursday, March 11, 2021)]
[Notices]
[Pages 13944-13946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05024]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91261; File No. SR-NSCC-2021-001]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change To Remove the InsurExpress and Replacements Services From
Rule 57 of the NSCC Rules
March 5, 2021.
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 February 25, 2021, 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 by the clearing agency.
NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A) \3\
of the Act and subparagraph (f)(4) \4\ of Rule 19b-4 thereunder. The
Commission is publishing this notice to solicit
[[Page 13945]]
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).
\4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
(a) The proposed rule change of NSCC is annexed hereto as Exhibit 5
and consists of modifications to NSCC's Rules & Procedures (``Rules'')
in order to remove the InsurExpress and Replacements services from Rule
57 of the Rules, as described in greater detail below.\5\
---------------------------------------------------------------------------
\5\ Terms not defined herein are defined in the Rules, available
at https://dtcc.com/~/media/Files/Downloads/legal/rules/
nscc_rules.pdf.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
1. Purpose
The proposed rule change consists of modifications to the Rules in
order to remove the InsurExpress and Replacements services from Rule 57
of the Rules, as described in greater detail below.
Background
InsurExpress
In 2003, NSCC established a service (``InsurExpress'') to allow
Members, Mutual Fund/Insurance Services Members, Insurance Carrier/
Retirement Services Members and Data Services Only Members
(collectively, ``I&RS Members'') to submit application information and
to settle premium payments with respect to life insurance products that
it, at that time, called ``Portal.'' \6\ In 2006, NSCC modified the
Rules to, among other things, add a provision in the Rules specific to
the service, rename the service ``InsurExpress'' and provide that
InsurExpress would allow I&RS Members to transmit I&RS Data relating to
the initiation, processing and completion of applications for life
insurance contracts and other insurance products among themselves.\7\
The provision relating to InsurExpress is set forth in Section 10 of
Rule 57 of the Rules.\8\ The 2003 Filing introducing the service
indicated that the proposed fee schedule was being developed and would
be filed with the Commission at a later date.\9\
---------------------------------------------------------------------------
\6\ Securities Exchange Act Release No. 48896 (December 9,
2003), 68 FR 70553 (December 18, 2003) (SR-NSCC-2003-18) (``2003
Filing'').
\7\ Securities Exchange Act Release No. 54921 (December 12,
2006), 71 FR 76415 (December 20, 2006) (SR-NSCC-2006-14).
\8\ Section 10 of Rule 57, supra note 5.
\9\ See Footnote 3 of the 2003 Filing, supra note 6.
---------------------------------------------------------------------------
No I&RS Members signed up for or used InsurExpress, and fees for
InsurExpress were never developed or filed with the Commission. In
addition, there were no system developments made to the NSCC system in
connection with InsurExpress. NSCC has no current plans to develop fees
or build anything in the NSCC system relating to InsurExpress. As a
result, NSCC would like to remove InsurExpress from the Rules.
Replacements
In 2010, NSCC established a service (``Replacements'') intended to
support the transmission of I&RS Data regarding the transfer, exchange
or replacement of an existing insurance contract and settlement of
payments in conjunction to these replacement transactions. System
developments to the NSCC system were made to support Replacements and a
fee schedule for the service was added in Section IV.K.3 of Addendum A
of the Rules. In addition, NSCC believes that at least one I&RS Member
signed up to use Replacements and possibly tested the service. However,
the service was never used in production and no fees have been charged
for the service. There are currently no I&RS Members signed up for
Replacements and NSCC does not believe that any I&RS Members will use
the service. As a result, NSCC would like to remove Replacements from
the Rules.
Proposed Rule Change
In order to implement the proposal above, NSCC would delete Section
10 of Rule 57,\10\ which is the section relating to InsurExpress. In
addition, NSCC would delete Section 11 of Rule 57,\11\ which is the
section relating to Replacements. NSCC would re-number Section 12 and
Section 13 of Rule 57 to reflect the deletions of Sections 10 and 11 of
Rule 57. NSCC would also remove the fees listed for Replacements in
Section IV.K.3 of Addendum A of the Rules.\12\
---------------------------------------------------------------------------
\10\ Section 10 of Rule 57, supra note 5.
\11\ Section 11 of Rule 57, supra note 5.
\12\ Section IV.K.3 of Addendum A of the Rules, supra note 5.
---------------------------------------------------------------------------
2. Statutory Basis
Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of securities transactions.\13\ NSCC believes that the proposed rule
change is consistent with this provision because it would provide
enhanced clarity and transparency for participants with respect to
services offered by NSCC by updating the Rules to remove the ability to
access services that I&RS Members did not utilize and are unlikely to
utilize in the future.
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\13\ 15 U.S.C. 78q-1(b)(3)(F).
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Therefore, by providing enhanced clarity and transparency in the
Rules regarding the services provided by NSCC, NSCC believes the
proposed rule change would promote the prompt and accurate clearance
and settlement of securities transactions, consistent with the
requirements of the Act, in particular Section 17A(b)(3)(F), cited
above.
(B) Clearing Agency's Statement on Burden on Competition
NSCC does not believe that the proposed rule change would have any
impact on competition. I&RS Members have not used InsurExpress or
Replacements and are unlikely to use either service in the future.
Therefore, the proposed rule change should have no effect on I&RS
Members, other than to remove InsurExpress and Replacements from the
Rules which are unlikely to be utilized by I&RS Members.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
NSCC has not received or solicited any written comments relating to
this proposal. 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 pursuant to Section
19(b)(3)(A) \14\ of the Act and paragraph (f) \15\ of Rule 19b-4
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend
[[Page 13946]]
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.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f).
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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 [email protected]. Please include
File Number SR-NSCC-2021-001 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to File Number SR-NSCC-2021-001. 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; 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-2021-001 and should be submitted on
or before April 1, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-05024 Filed 3-10-21; 8:45 am]
BILLING CODE 8011-01-P
