[Federal Register Volume 75, Number 235 (Wednesday, December 8, 2010)]
[Notices]
[Pages 76512-76513]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30881]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63417; File No. SR-NSCC-2010-17]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Discontinue the Cost Basis Reporting Service
December 2, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on November 23, 2010,
National Securities Clearing Corporation (``NSCC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change described in Items I and II below, which items have been
prepared primarily by NSCC.\2\ NSCC filed the proposed rule change
pursuant to Section 19(b)(3)(A)(iii) and Rule 19b-4(f)(4) thereunder so
that the proposed rule change was effective upon filing with the
Commission.\3\ The Commission is publishing this notice to solicit
comments on the proposed rule change from interested parties.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ The text of the proposed rule change is attached as Exhibit
5 to NSCC's filing, which is available at http://www.dtcc.com/downloads/legal/rule_filings/2010/nscc/2010-17.pdf.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii) and 17 CFR 240.19b-4(f)(4).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The proposed rule change will discontinue NSCC's Cost Basis
Reporting Service (``CBRS'').
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NSCC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. NSCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\4\
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\4\ The Commission has modified the text of the summaries
prepared by the NSCC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the proposed rule change is to delete the rule
regarding NSCC's CBRS as the CBRS offered by NSCC will be terminated.
The effective date of the termination of CBRS as a NSCC service
offering will be December 10, 2010.
For purposes of efficiency and enhanced customer service, DTCC
Solutions LLC (``DTCC Solutions''), a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation, which offers services similar
in nature to the CBRS, will offer the CBRS. CBRS as offered by DTCC
Solutions will support a broader group of financial institutions and
entities that are currently not eligible to become NSCC members, such
as transfer agents and securities issuers. NSCC believes that
discontinuing CBRS at NSCC and reestablishing the service at DTCC
Solutions will not disadvantage NSCC members in any way.
[[Page 76513]]
Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of a clearing agency be designed to remove impediments to and
perfect the mechanism of a national system for prompt and accurate
clearance and settlement of securities transactions, to foster
cooperation and coordination with persons engaged in the clearance and
settlement of securities transactions, and, in general, to protect
investors and the public interest.\5\ NSCC believes that the proposed
rule change is consistent with these requirements of Section 17A of the
Act \6\ and the rules and regulations thereunder that are applicable to
NSCC because discontinuing the CBRS will allow for more efficient
allocation of NSCC's resources.
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\5\ 15 U.S.C. 78q-1(b)(3)(F).
\6\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition
NSCC does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others
No written comments relating to the proposed rule change have been
solicited or received. NSCC will notify the Commission of any written
comments received by NSCC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(4) \8\
thereunder because it effects a change in an existing service of NSCC
that: (i) Does not adversely affect the safeguarding of securities or
funds in the custody or control of NSCC or for which it is responsible
and (ii) does not significantly affect the respective rights or
obligations of the clearing agency or persons using the service. At any
time within sixty days of the filing of such 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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(4).
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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 (http://www.sec.gov/rules/sro.shtml) or
Send an e-mail to [email protected]. Please include
File Number SR-NSCC-2010-17 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSCC-2010-17. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://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 Section, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filings also will be available for
inspection and copying at the principal office of NSCC and on NSCC's
Web site, http://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 Number SR-NSCC-2010-17 and should be submitted on or before
December 29, 2010.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-30881 Filed 12-7-10; 8:45 am]
BILLING CODE 8011-01-P