80 FR 18889 - Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend Addendum A (Fee Structure) With Respect to the Alternative Investment Product Services

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 67 (April 8, 2015)

[Federal Register Volume 80, Number 67 (Wednesday, April 8, 2015)]
[Notices]
[Pages 18889-18890]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07967]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74639; File No. SR-NSCC-2015-001]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change to Amend Addendum A (Fee Structure) With Respect to the 
Alternative Investment Product Services

April 2, 2015.
    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 23, 2015, 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 NSCC. NSCC filed the proposed rule change 
pursuant to Section 19(b)(3)(A) \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.
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    \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)(2).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change consists of an amendment to Addendum A 
(Fee Structure) of NSCC's Rules & Procedures (``Rules'') to establish 
certain fees applicable to the Alternative Investment Product services 
(``AIP'' or the ``Service''), as more fully described below. The text 
of the proposed rule change is available on NSCC's Web site at http://www.dtcc.com/legal/sec-rule-filings.aspx, at the principal office of 
NSCC, and at the Commission's Public Reference Room.

II. Clearing Agency'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

(1) Statement of Purpose
    AIP was initially approved by the Commission on May 12, 2008 \5\ as 
a new processing platform for alternative investment products such as 
hedge funds, funds of hedge funds, commodities pools, managed futures, 
and real estate investment trusts (collectively, ``Eligible AIP 
Products''). AIP links global market participants, including broker/
dealers, fund managers, fund administrators and custodians 
(collectively, ``AIP Members''), to provide one standard end-to-end 
process for Eligible AIP Products.
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    \5\ Securities Exchange Act Release No. 57813 (May 12, 2008), 73 
FR 28539 (May 16, 2008) (SR-NSCC-2007-12).
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    As set forth in NSCC's Rules, ``AIP Data transmitted through the 
AIP Service may include data relating to subscriptions and purchases; 
redemptions, withdrawals and tender offers; exchange transactions; 
transfers; . . . and such other data as may be established by [NSCC] 
from time to time.'' \6\
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    \6\ See, [sic] NSCC Rule 53 (Alternative Investment Product 
Services and Members), Section 6 (Transmission of AIP Data) 
[emphasis added].
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    NSCC recently enhanced the AIP platform to better process transfer 
instructions submitted by AIP Members. In connection with these 
enhancements, NSCC proposes to amend Addendum A to establish the fees 
applicable to the processing of transfers, such as for example, 
internal transfers. Internal transfers occur within an AIP Member that 
is a broker/dealer when such AIP Member re-registers a customer account 
in the name of a different customer due to, for example, the death of 
the previously registered customer. NSCC proposes to establish the 
following fees for AIP transfers:
     $1.50 per transfer for higher volume Eligible AIP 
Products.
     $5.00 per transfer for lower volume Eligible AIP Products.
    NSCC will implement the new transfer fees beginning March 26, 2015, 
or such later date as NSCC may announce through Important Notice.
(2) Statutory Basis
    NSCC believes that the proposed rule change is consistent with the 
requirements of the Act, and the rules and regulations thereunder 
applicable to NSCC. In particular, the proposed rule change is 
consistent with Section 17A(b)(3)(D) \7\ of the Act because it 
establishes NSCC's fees for the processing of transfer instructions 
submitted by AIP Members, which helps to provide for the equitable 
allocation of reasonable dues, fees and other charges among members in 
connection with use of the Service.
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    \7\ 15 U.S.C. 78q-1(b)(3)(D).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    NSCC does not believe that the proposed rule change will have any 
impact or impose any burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments relating to the proposed rule change have not yet 
been solicited or received. NSCC will notify the Commission of any 
written comments received by NSCC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \8\ and paragraph (f) of Rule 19b-4 \9\ 
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.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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:

[[Page 18890]]

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NSCC-2015-001 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-NSCC-2015-001. 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 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 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 Web site at (http://www.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-2015-001 
and should be submitted on or before April 29, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07967 Filed 4-7-15; 8:45 am]
BILLING CODE 8011-01-P